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Palestine and Saudi Arabia, Two Different Countries with Two Different Conditions: Are the Determinants of Capital Structure of Corresponding Markets the Same?

Author

Listed:
  • Bashar K. Abu Khalaf

    (School of Business, The University of Jordan, Jordan,)

  • Bara' Al-Nees

    (School of Business, The University of Jordan, Amman, Jordan,)

  • Lilana Sukkari

    (School of Business, The University of Jordan, Amman, Jordan.)

Abstract

This paper investigates the determinants of capital structure of two different countries, Saudi Arabia and Palestine. The analysis employs panel data analysis and seemingly unrelated regression based on a sample of 21 listed Palestinian companies and 61 Saudi companies. The study in this paper extends from 2005 to 2015. The findings of this study indicate that the leverage ratios of both Palestinian and Saudi firms are low. Moreover, the most common determinants of capital structure are found and significantly affecting both Palestinian and Saudi firms, finally the differences in the magnitudes and sign of the coefficients are because of country-level differences and not due to firm-level differences.

Suggested Citation

  • Bashar K. Abu Khalaf & Bara' Al-Nees & Lilana Sukkari, 2017. "Palestine and Saudi Arabia, Two Different Countries with Two Different Conditions: Are the Determinants of Capital Structure of Corresponding Markets the Same?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 365-369.
    • Handle: RePEc:eco:journ1:2017-02-49
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    References listed on IDEAS

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    More about this item

    Keywords

    Capital Structure; Financial Markets; Saudi Arabia; Palestine;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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