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Study on the Relationship of Firm's Performance with Capital Structure-Evidence from Taiwan

Author

Listed:
  • Shailender Singh

    (Department of International Finance, I-Shou University, Taiwan,)

  • Amar Singh

    (Department of Commerce, Graphic Era University, India.)

Abstract

The purpose of this study is to investigate the relationship between capital structure and firm's financial performance by using five years data from 2011 to 2016 of Taiwan exchange listed companies. The data has been analyzed by using descriptive statistics, correlation analysis to find out the association between the variables and t-statistics to test the hypothesis. The findings at overall market as well as sector levels were unspectacular but remarkably consistent. Capital structure and various financial parameters exhibit correlation coefficients that were mixed in signs with relatively weak correlation strength. Further the results suggest that t-test statistics registered statistical insignificance for the three research objectives.

Suggested Citation

  • Shailender Singh & Amar Singh, 2018. "Study on the Relationship of Firm's Performance with Capital Structure-Evidence from Taiwan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 307-314.
    • Handle: RePEc:eco:journ1:2018-03-36
    as

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    References listed on IDEAS

    as
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    3. Stephen A. Ross, 1977. "The Determination of Financial Structure: The Incentive-Signalling Approach," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 23-40, Spring.
    4. Ibrahim El-Sayed Ebaid, 2009. "The impact of capital-structure choice on firm performance: empirical evidence from Egypt," Journal of Risk Finance, Emerald Group Publishing, vol. 10(5), pages 477-487, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Capital Structure; Financial Performance; Leverage Ratio; TWSE.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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