A COMPARISON OF THE CAPITAL STRUCTURES OF THE TOP 40 MULTINATIONAL ENTITIES AND THE TOP 40 JSE-LISTED ENTITIES

Lana H. HARMSE

Makale detayları

A COMPARISON OF THE CAPITAL STRUCTURES OF THE TOP 40 MULTINATIONAL ENTITIES AND THE TOP 40 JSE-LISTED ENTITIES

Yazarlar:

Lana H. HARMSE

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Social Sciences and Humanity Studies 2017 Vol.9 Issue 1, pp.121-135

Belge Tipi:

Makale

Yayın Tarihi:

1/2017

Belge Dili:

Türkçe

Document ID (Org No.):

2000819850

Sıklık:

İki Yıllık

eISSN:

1309-8063

Özet:

 

The strategies and policies of multinational entities (MNEs) centre on the focal
 goal of any company, which is to maximise profits and shareholder wealth.
 Management aims for an optimum ownership structure by implementing various
 strategies. One of these strategies is the debt-to-equity ratio (the capital structure).
 Previous studies conducted on various countries’ locally-listed entities confirm
 that the capital structure of an entity has an impact on the value of that entity. This
 then raises an interesting question as to whether the capital structures of the top 40
 Johannesburg Stock Exchange (JSE)-listed entities are similar to those of the top
 40 global MNEs. Based on market capitalisation on 31 December 2014, this study
 sought to compare the capital structures, using the debt-to-equity ratio, of the top
 40 JSE-listed entities with those of the top 40 global MNEs on the Fortune 500
 list. Independent t-tests were performed on the debt-to-equity ratios of the top 40
 JSE-listed entities and the top 40 global MNEs as a group. Both independent ttests
 and the Mann-Whitney tests were performed on the debt-to-equity ratios of
 applicable entities of the group divided into three selected industries. The results
 of the independent t-test indicate a statistical and practically significant difference
 between the top 40 JSE-listed entities and the top 40 global MNEs’ capital
 structures. The results of the Mann-Whitney tests indicate that if the financial
 industry is excluded, there is no statistical or practically significant difference
 between the capital structures of the top 40 JSE-listed entities and the top 40
 MNEs. However, based on the effect size there is a practical visible difference.

Makale detayları

A COMPARISON OF THE CAPITAL STRUCTURES OF THE TOP 40 MULTINATIONAL ENTITIES AND THE TOP 40 JSE-LISTED ENTITIES

Yazarlar: Lana H. HARMSE

Yayıncı: Sosyal Bilimler Araştırmaları Derneği

Dergi: International Journal of Social Sciences and Humanity Studies 2017 Vol.9 Issue 1, pp.121-135

Belge Tipi: Makale

Yayın Tarihi: 1/2017

Belge Dili: Türkçe

Document ID (Org No.): 2000819850

Sıklık: İki Yıllık

eISSN: 1309-8063

Sayı

Yazarlar:

Lana H. HARMSE

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Social Sciences and Humanity Studies 2017 Vol.9 Issue 1, pp.121-135

Belge Tipi:

Makale

Yayın Tarihi:

1/2017

Belge Dili:

Türkçe

Document ID (Org No.):

2000819850

Sıklık:

İki Yıllık

eISSN:

1309-8063