EN
Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries
Abstract
The issue of target leverage for corporate firms in developing countries has received little attention in extant literature, especially countries in Africa. Given the imperfection that exists in African financial markets that may limit firms access to external capital, this study investigates dynamic adjustment towards a target debt ratio. In addition, the study used a dynamic panel data estimation technique to determine adjustment costs and speed of adjustment in non-financial firms in selected African countries over the period 2003 to 2012. The study finds that the firms make dynamic adjustment to a target leverage with low adjustment costs and relatively fast speed of adjustment.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
June 1, 2015
Submission Date
June 1, 2015
Acceptance Date
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Published in Issue
Year 2015 Volume: 5 Number: 2
APA
Etudaiye-muhtar, O. F., & Ahmad, R. (2015). Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries. International Journal of Economics and Financial Issues, 5(2), 482-488. https://izlik.org/JA26UP59DF
AMA
1.Etudaiye-muhtar OF, Ahmad R. Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries. IJEFI. 2015;5(2):482-488. https://izlik.org/JA26UP59DF
Chicago
Etudaiye-muhtar, Oyebola Fatima, and Rubi Ahmad. 2015. “Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries”. International Journal of Economics and Financial Issues 5 (2): 482-88. https://izlik.org/JA26UP59DF.
EndNote
Etudaiye-muhtar OF, Ahmad R (June 1, 2015) Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries. International Journal of Economics and Financial Issues 5 2 482–488.
IEEE
[1]O. F. Etudaiye-muhtar and R. Ahmad, “Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries”, IJEFI, vol. 5, no. 2, pp. 482–488, June 2015, [Online]. Available: https://izlik.org/JA26UP59DF
ISNAD
Etudaiye-muhtar, Oyebola Fatima - Ahmad, Rubi. “Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries”. International Journal of Economics and Financial Issues 5/2 (June 1, 2015): 482-488. https://izlik.org/JA26UP59DF.
JAMA
1.Etudaiye-muhtar OF, Ahmad R. Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries. IJEFI. 2015;5:482–488.
MLA
Etudaiye-muhtar, Oyebola Fatima, and Rubi Ahmad. “Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries”. International Journal of Economics and Financial Issues, vol. 5, no. 2, June 2015, pp. 482-8, https://izlik.org/JA26UP59DF.
Vancouver
1.Oyebola Fatima Etudaiye-muhtar, Rubi Ahmad. Empirical Evidence of Target Leverage, Adjustment Costs and Adjustment Speed of Non-Financial Firms in Selected African Countries. IJEFI [Internet]. 2015 Jun. 1;5(2):482-8. Available from: https://izlik.org/JA26UP59DF