Factors Affecting Debt to Equity Mixture in Kuwait, Bahrain and Oman
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Keywords

Leverage, Gross profit, Capital structure, Firm repute, Size, Balance sheet

How to Cite

Al Hussaini, A. N. . (2018). Factors Affecting Debt to Equity Mixture in Kuwait, Bahrain and Oman. International Journal of Asian Social Science, 8(12), 1204–1218. https://doi.org/10.18488/journal.1.2018.812.1204.1218

Abstract

The key objective of present study analysis is to investigate the impact of various indicators on the value of debt to equity mixture (leverage) of the selected firms in the region of Bahrain, Kuwait and Oman during the time of 2011 to 2016. The key method being implemented in the present study is based on the robust multiple regression equations. The time of the study is from 2011 to 2016 with the factors like current assets, operating fixed assets, the net book value of fixed assets, admin expenses, earnings before interest and tax, return on assets, gross profit and finally the age of the firm. Findings of the study indicate that in the overall sample of the study key factors like of operating fixed assets along with net book value of the fixed assets has their significant contribution to predicting the value of financial leverage in the business. As per the originality/value of the study, it is found that in the selected region, this is a very first attempt to check the impact of selected indicators on the value of leverage over time. However, the limitation of the study includes the limited sample size which can be covered in the coming time for the better generalization of the results and suitable decisions. Besides, the study is contributing to existing literature while providing in-depth analysis of selected firms in three regions.

https://doi.org/10.18488/journal.1.2018.812.1204.1218
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