ISSN: 1817-5880

Author : Abdul Husein AL saadi, Dr.Alaa


Capital Structure and the variables Affect on it Empirical study on UAE listed companies

Dr.Alaa Abdul Husein AL saadi

Gulf Economist, Volume 29, Issue 23, Pages 136-158

Abstract:
This study aims to investigate the capital structure levels (leverage ratio) and the economic activity effects,and some variabls on these levels of listed companies in the United Arab Emirates. The study adopting Panel Data for sample of 35 companies which are registered in both Abu Dhabi and Dubai security markets for 6 years during the period 2005 – 2010. The fixed-effect (within) regression model was used to examine this sample.
The study concluded that the nature of company’s business has effect on capital structure level. In addition the study showed that there was a positive significant relationship between fixed assets and company size with the company’s capital structure, and there was a negative significant relationship between profitability and company’s capital structure. These results indicate that the companies have big fixed assets used leverage in order to increase their operation activities but as a second option after use of their equity funds first.