TY  - JOUR
TT  - Cogency of Capital Structure Theories to an Islamic Country: Empirical Evidence from the Kuwaiti Banks
AU  - Naser, Kamal
AU  - Mutairi, Abdullah Al-
AU  - Kandari, Ahmad Al
AU  - Nuseibeh, Rana
PY  - 2015
DA  - December
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 979
EP  - 988
VL  - 5
IS  - 4
KW  - Capital structure
KW  - firm size
KW  - Pecking Order Theory
KW  - Static Trade-off Theory
KW  - Banking Sector
KW  - Kuwait Stock Exchange
KW  - Kuwait
N2  - This study is set out to examine the cogency of capital structure theories in a unique Islamic financial environment where tax shield is irrelevant, paying or receiving interest is undesirable   and government exercises control over major economic activities. To achieve this objective, the annual reports of all Kuwaiti banks listed on the Kuwait Stock Exchange (KSE) for the period between 2010 and 2014 were used to extract internal bank variables. In addition, external macroeconomic data were extracted from World Bank statistics. The results of the pooled regression analysis disclosed that the capital structure of the Kuwaiti banks are influenced by their size measured by total assets, cash dividends paid and the market value/ book value of the bank's share. While the result was inconsistent with agency theory, it provides support to the pick-order, trade off and market theories.
UR  - https://dergipark.org.tr/tr/pub/ijefi/issue//352229
L1  - https://dergipark.org.tr/tr/download/article-file/363114
ER  -