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The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind

The role of debt in capital structure and firms' performance has a great novelty in reducing market imperfections that improve firms' value. This study integrated the qualitative and quantitative aspects of capital structure and firms' performance in 56 stock exchange-listed companies...

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Main Authors:	Sadiq, Misbah, Yousaf, Sheikh Usman, Anser, Muhammad Khalid, Rashid Khan, Haroon, Sriyanto, Sriyanto, Zaman, Khalid, Duong, Van Tu, Mohd. Anis, Siti Nisrin
Format:	Article
Published:	Elsevier Inc 2023
Subjects:	H Social Sciences (General) HB Economic Theory
Online Access:	http://eprints.utm.my/106637/ http://dx.doi.org/10.1016/j.qref.2020.11.001
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id	my.utm.106637
record_format	eprints
spelling	my.utm.1066372024-07-11T03:11:43Z http://eprints.utm.my/106637/ The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin H Social Sciences (General) HB Economic Theory The role of debt in capital structure and firms' performance has a great novelty in reducing market imperfections that improve firms' value. This study integrated the qualitative and quantitative aspects of capital structure and firms' performance in 56 stock exchange-listed companies of Jordan by using the time series data from 2012 to 2016. The results confirmed the “stewardship theory,” "pecking order theory," and “concentrated ownership theory,” while contractionary monetary instruments diffuse the recessionary phase in a country. The results confirmed a U-shaped relationship between debt and Tobin's Q in mediation with the country's per capita income. In contrast, an inverted U-shaped relationship found between market capitalization and a firm's performance in intervention with domestic credit provided by the financial sector (DCPFS). These results are essential in the light of CG theories to stabilize the firm's internal and external issues, which are further optimized by government financial agencies to energize macroeconomic policies for sustained growth. Elsevier Inc 2023-02 Article PeerReviewed Sadiq, Misbah and Yousaf, Sheikh Usman and Anser, Muhammad Khalid and Rashid Khan, Haroon and Sriyanto, Sriyanto and Zaman, Khalid and Duong, Van Tu and Mohd. Anis, Siti Nisrin (2023) The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind. Quarterly Review of Economics and Finance, 87 (NA). pp. 212-223. ISSN 1062-9769 http://dx.doi.org/10.1016/j.qref.2020.11.001 DOI:10.1016/j.qref.2020.11.001
institution	Universiti Teknologi Malaysia
building	UTM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Teknologi Malaysia
content_source	UTM Institutional Repository
url_provider	http://eprints.utm.my/
topic	H Social Sciences (General) HB Economic Theory
spellingShingle	H Social Sciences (General) HB Economic Theory Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind
description	The role of debt in capital structure and firms' performance has a great novelty in reducing market imperfections that improve firms' value. This study integrated the qualitative and quantitative aspects of capital structure and firms' performance in 56 stock exchange-listed companies of Jordan by using the time series data from 2012 to 2016. The results confirmed the “stewardship theory,” "pecking order theory," and “concentrated ownership theory,” while contractionary monetary instruments diffuse the recessionary phase in a country. The results confirmed a U-shaped relationship between debt and Tobin's Q in mediation with the country's per capita income. In contrast, an inverted U-shaped relationship found between market capitalization and a firm's performance in intervention with domestic credit provided by the financial sector (DCPFS). These results are essential in the light of CG theories to stabilize the firm's internal and external issues, which are further optimized by government financial agencies to energize macroeconomic policies for sustained growth.
format	Article
author	Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin
author_facet	Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin
author_sort	Sadiq, Misbah
title	The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind
title_short	The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind
title_full	The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind
title_fullStr	The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind
title_full_unstemmed	The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind
title_sort	role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind
publisher	Elsevier Inc
publishDate	2023
url	http://eprints.utm.my/106637/ http://dx.doi.org/10.1016/j.qref.2020.11.001
_version_	1805880841615704064
score	13.211869

The role of debt financing in the relationship between capital structure, firm's value, and macroeconomic factors: to throw caution to the wind

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