Abstract
This paper provides novel evidence on firm- and country-level determinants of firm capital structure decisions in the MENA region. Using a sample of 444 listed firms from ten countries, over the 2003–2011 period, we find that MENA firms have target leverage ratios towards which they adjust over time. Yet, the speed of adjustment varies from one country to another. Our findings also suggest that some firm-level factors are associated with leverage consistent with the trade-off and pecking order theories of capital structure. We further find robust evidence that better institutional quality leads firms to use more debt.
DOI
10.1016/j.ememar.2016.01.001
Publication Date
2016-03-01
Publication Title
Emerging Markets Review
Volume
26
Publisher
Elsevier BV
ISSN
1566-0141
Embargo Period
2024-11-19
First Page
99
Last Page
129
Recommended Citation
Belkhir, M., Maghyereh, A., & Awartani, B. (2016) 'Institutions and corporate capital structure in the MENA region', Emerging Markets Review, 26, pp. 99-129. Elsevier BV: Available at: https://doi.org/10.1016/j.ememar.2016.01.001
