IDEAS home Printed from https://ideas.repec.org/a/ora/jrojbe/v7y2022ispecialp111-119.html
   My bibliography  Save this article

The Effect Of Capital Structure On Earnings Per Share Of Publicly Traded Companies: A Review Of Related Literature

Author

Listed:
  • Stephanie M. Chondough

    (Faculty of Economics and Business, Károly Ihrig Doctoral School of Management and Business, The University of Debrecen, Debrecen, Hungary)

Abstract

The purpose of this article is to conduct a review of related works on the relationship between capital structure and earnings per share of publicly traded companies to determine the nature of the relationship that exists between the two variables. A desk survey was employed to review related works. A summary of the methodology, findings and conclusions are presented to determine the extent to which the main question of the review is answered. The result revealed that there is a dearth of research on the effects of earnings per share on the capital structure of listed companies and vice versa, especially in Europe and America. The review also identified a unidirectional approach to the methodology of the reviewed works. There are divergent findings on the relationship that exists between earnings per share and capital structure which calls for more studies to be conducted to determine the behavior of these variables more clearly.

Suggested Citation

  • Stephanie M. Chondough, 2022. "The Effect Of Capital Structure On Earnings Per Share Of Publicly Traded Companies: A Review Of Related Literature," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 7(special), pages 111-119, June.
    • Handle: RePEc:ora:jrojbe:v:7:y:2022:i:special:p:111-119
    DOI: http://doi.org/10.47535/1991ojbe150
    as

    Download full text from publisher

    File URL: http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2022/06/OJBE-7special-111-119.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.47535/1991ojbe150?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Chowdhury, Anup & Chowdhury, Suman Paul, 2010. "Impact of capital structure on firm’s value: Evidence from Bangladesh," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 3(3), pages 1-12, October.
    3. David Durand, 1952. "Costs of Debt and Equity Funds for Business: Trends and Problems of Measurement," NBER Chapters, in: Conference on Research in Business Finance, pages 215-262, National Bureau of Economic Research, Inc.
    4. Walter A. Chudson, 1945. "The Pattern of Corporate Financial Structure: A Cross-Section View of Manufacturing, Mining, Trade, and Construction, 1937," NBER Books, National Bureau of Economic Research, Inc, number chud45-1.
    5. Abdulkadir Ali Tifow & Ozlem Sayilir, 2015. "Capital Structure and Firm Performance: An Analysis of Manufacturing Firms in Turkey," Eurasian Journal of Business and Management, Eurasian Publications, vol. 3(4), pages 13-22.
    6. Md. Ataur Rahman & Md. Sadrul Islam Sarker & Md. Joyen Uddin, 2019. "The Impact of Capital Structure on the Profitability of Publicly Traded Manufacturing Firms in Bangladesh," Applied Economics and Finance, Redfame publishing, vol. 6(2), pages 1-5, March.
    7. Mubeen Mujahid & Kalsoom Akhtar, 2014. "Impact of Capital Structure on Firms Financial Performance and Shareholders Wealth: Textile Sector of Pakistan," International Journal of Learning and Development, Macrothink Institute, vol. 4(2), pages 27-33, June.
    8. Md. Nur Alam Siddik & Sajal Kabiraj & Shanmugan Joghee, 2017. "Impacts of Capital Structure on Performance of Banks in a Developing Economy: Evidence from Bangladesh," IJFS, MDPI, vol. 5(2), pages 1-18, May.
    9. Raluca-Georgiana Moscu, 2014. "Capital Structure and Corporate Performance of Romanian Listed Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 287-292, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthew Adeolu Abata & Stephen Oseko Migiro & Joseph Olorunfemi Akande & Raredzo Layton, 2017. "Does Capital Structure Impact on the Performance of South African Listed Firms?," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(6), pages 334-350, DECEMBER.
    2. Osaretin Kayode Omoregie & Sodik Adejonwo Olofin & Fredrick Ikpesu, 2019. "Capital Structure and the Profitability-Liquidity Trade-off," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 105-115.
    3. Niluthpaul Sarker & Roushanara Islam, 2021. "Issues on Bank’s Capital Structure and Profitability: A Developing Country Context," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 86-104.
    4. Jay Desai & Rajesh Desai, 2019. "Capital Structure As Determinant Of Financial Performance: Review Of Literature," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 8(4), pages 133-148.
    5. Elif Acar & Gamze Vural & Emin Hüseyin Çetenak, 2020. "Evidence for Financial Hierarchy Theory in Capital Structure Decisions: Data from BIST Companies," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 34(1), pages 29-50.
    6. Udochukwu Godfrey Ogbonna & Chukwu Agwu Ejem, 2020. "Dynamic Modeling of Market Value and Capital Structure in Nigerian Firms," International Journal of Economics and Financial Issues, Econjournals, vol. 10(1), pages 1-5.
    7. Saurabh Chadha & Anil K. Sharma, 2016. "An Empirical Study on Capital Structure in Indian Manufacturing Sector," Global Business Review, International Management Institute, vol. 17(2), pages 411-424, April.
    8. Md. Faruk Hossain & Md. Ayub Ali, 2012. "Impact of Firm Specific Factors on Capital Structure Decision: An Empirical Study of Bangladeshi Companies," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 3(4), pages 163-182, August.
    9. Kurada T S S Satyanarayana & Addada Narasimha Rao, 2023. "Capital Structure Theories and its Practice, A study with reference to select NSE listed public sectors banks, India," Papers 2307.14049, arXiv.org.
    10. Sylwia Kruk, 2021. "Impact of Capital Structure on Corporate Value—Review of Literature," JRFM, MDPI, vol. 14(4), pages 1-13, April.
    11. Matthew Adeolu Abata & Stephen Oseko Migiro, 2016. "Capital Structure and Firm Performance in Nigerian-Listed Companies," Journal of Economics and Behavioral Studies, AMH International, vol. 8(3), pages 54-74.
    12. Hani El-Chaarani & Zouhour El-Abiad, 2019. "Analysis of Capital Structure and Performance of Banking Sector in Middle East Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 1-11.
    13. Ngatemin & Maksum Azhar & Erlina & Sirojuzilam, 2018. "Value of the Firm in Capital Structure Perspective: (Case study of tourism companies in IndonesiaStock Exchange)," Economics, Sciendo, vol. 6(1), pages 91-102, June.
    14. Irene Wei Kiong Ting & Imen Tebourbi & Wen-Min Lu & Qian Long Kweh, 2021. "The effects of managerial ability on firm performance and the mediating role of capital structure: evidence from Taiwan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-23, December.
    15. Syed Manzur Quader & Mohammad Nayeem Abdullah, 2020. "How financial market in Bangladesh appraises efficiency?," Economic Change and Restructuring, Springer, vol. 53(3), pages 475-494, August.
    16. Mihaela Brindusa TUDOSE, 2012. "Dimensions of the research on capital structure and firm performance," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 879-886, May.
    17. Álvarez-Ayuso, Inmaculada C. & Kao, Chihwa & Romero-Jordán, Desiderio, 2018. "Long run effect of public grants and tax credits on R&D investment: A non-stationary panel data approach," Economic Modelling, Elsevier, vol. 75(C), pages 93-104.
    18. Marcin Kedzior & Barbara Grabinska & Konrad Grabinski & Dorota Kedzior, 2020. "Capital Structure Choices in Technology Firms: Empirical Results from Polish Listed Companies," JRFM, MDPI, vol. 13(9), pages 1-20, September.
    19. Romuald TEMOMO WAMBA & Anicet Clément MIMCHE KOUOTOU & Samuel Roland MAKANI & Damaris CILINOU, 2019. "Analyse de l’effet de la structure de financement sur la création de la valeur partenariale dans les PME camerounaises du secteur de commerce et de distribution," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 10(1), pages 81-102, June.
    20. Md. Ataur Rahman & Md. Sadrul Islam Sarker & Md. Joyen Uddin, 2019. "The Impact of Capital Structure on the Profitability of Publicly Traded Manufacturing Firms in Bangladesh," Applied Economics and Finance, Redfame publishing, vol. 6(2), pages 1-5, March.

    More about this item

    Keywords

    earnings per share (EPS); capital structure; performance;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:jrojbe:v:7:y:2022:i:special:p:111-119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tomina SAVEANU (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.