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

Title: CAPITAL STRUCTURE OF MULTINATIONAL COMPANIES AND DOMESTIC COMPANIES AND DETERMINING FACTORS: 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 research aims to obtain empirical evidence of differences in the capital structure of multinational companies and domestic companies in developed and developing countries. This research also examines the influence of firm age, firm size, tangibility, profitability, GDP and inflation on capital structure. The technique used in this research is the Difference Test for two sample group averages and effect estimation using panel data regression equations. The sample used was 147 companies, 80 domestic companies and 67 multinational companies with a research period of 2009-2011. The research results show that there are differences in the capital structure of multinational companies and domestic companies in developed countries, the difference is firm size and GDP. There are differences in the capital structure of multinational companies in developed countries and developing countries, the differences are tangibility, inflation and GDP.

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

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