Factors influencing capital structure decision of small firms in Bangladesh: an empirical evidence
by Md. Nazmul Hossain; Quazi Sagota Samina
International Journal of Business and Data Analytics (IJBDA), Vol. 2, No. 2, 2022

Abstract: This study has recognised some factors touching capital structure decision for small firms operating in Bangladesh. It confirms that few factors are significantly positively (asset tangibility and agency cost) and negatively (accounts receivable) related with capital structure whereas others are not commendably related (age of enterprise and liquidity). Account receivable, popularly referred to as an important element of business firms, is firstly announced as a determinant of capital structure decision. This study also finds that age of enterprise and asset tangibility support the trade-off theory (TOT), liquidity supports pecking order theory (POT), and accounts receivable supports free cash flow theory (FCFT). This study finds that the independent variables explain how capital structure is better for sole proprietorship firms than for partnership firms. Also for sole proprietorship firms, all the independent variables have statistically significant impact on capital structure whereas for partnership firms, only two independent variables show statistically significant relationship.

Online publication date: Mon, 07-Nov-2022

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Data Analytics (IJBDA):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com