Corporate characteristics and leverage in Ghana

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Date
2023
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KNUST
Abstract
Corporate characteristics of firms in recent years, have been found to have meaningful impact in the performance of firms and most importantly on their capital structure. The mix of various methods of funding sources firms maintain it's relevant for investors, directors and all other stakeholders. The financing decision may have a direct influence on the firm’s value. In providing conclusive answers, this study is sought to investigate the impact of corporate characteristics on financial leverage of non-financial listed firms on the Ghana Stock Exchange. Hand collected archival data from annual reports of companies observed over ten (10) years was used. The panel estimation techniques including random effect was used to analyse a total of 160-firm year observation for the period 2012 to 2021. Generally, the results revealed firm size, profitability and the tangibility of an asset are all factors that affects leverage. Based on the above results, the study recommends government to consider the need to enhance long-term external source of funding, particularly to enhance the local bond market and making it accessible to corporate entities.
Description
A thesis submitted to the Department of Accounting and Finance, Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the requirements for the degree of master of science (accounting and finance)
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