Title: CAPITAL STRUCTURE OF MULTINATIONAL AND DOMESTIC COMPANIES AND ITS DETERMINING FACTORS: A COMPARISON IN DEVELOPED AND DEVELOPING COUNTRIES

Author: ANITA HANDAYANI

Affiliations : Master of Management Science Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This study aims to obtain empirical evidence of differences in the capital structure of multinational companies and domestic companies in developed and developing countries. This study also examines the influence of firm age, firm size, tangibility, profitability, GDP and inflation on capital structure. The technique used in this study is the Difference Test for two sample group means and estimation of the effect using a panel data regression equation. The sample used was 147 companies, 80 domestic companies and 67 multinational companies with a research period of 2009-2011. The results of the study indicate that there are differences in the capital structure of multinational companies and domestic companies in developed countries, the differences being firm size and GDP. There are differences in the capital structure of multinational companies in developed countries and developing countries, the differences being tangibility, inflation, and GDP.

Keywords: Capital Structure, Firm age, firm size, tangibility, ROA, GDP, and inflation

Sources: http://repository.unair.ac.id/37237 /