资本结构中英文对照外文翻译文献.docx
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资本结构中英文对照外文翻译文献
中英文对照外文翻译
(文档含英文原文和中文翻译)
Theeffectofcapitalstructureonprofitability:
anempiricalanalysisoflistedfirmsinGhana
Introduction
Thecapitalstructuredecisioniscrucialforanybusinessorganization.Thedecisionisimportantbecauseoftheneedtomaximizereturnstovariousorganizationalconstituencies,andalsobecauseoftheimpactsuchadecisionhasonafirm’sabilitytodealwithitscompetitiveenvironment.Thecapitalstructureofafirmisactuallyamixofdifferentsecurities.Ingeneral,afirmcanchooseamongmanyalternativecapitalstructures.Itcanissuealargeamountofdebtorverylittledebt.Itcanarrangeleasefinancing,usewarrants,issueconvertiblebonds,signforwardcontractsortradebondswaps.Itcanissuedozensofdistinctsecuritiesincountlesscombinations;however,itattemptstofindtheparticularcombinationthatmaximizesitsoverallmarketvalue.
Anumberoftheorieshavebeenadvancedinexplainingthecapitalstructureoffirms.Despitethetheoreticalappealofcapitalstructure,researchersinfinancialmanagementhavenotfoundtheoptimalcapitalstructure.Thebestthatacademicsandpractitionershavebeenabletoachieveareprescriptionsthatsatisfyshort-termgoals.Forexample,thelackofaconsensusaboutwhatwouldqualifyasoptimalcapitalstructurehasnecessitatedtheneedforthisresearch.Abetterunderstandingoftheissuesathandrequiresalookattheconceptofcapitalstructureanditseffectonfirmprofitability.ThispaperexaminestherelationshipbetweencapitalstructureandprofitabilityofcompanieslistedontheGhanaStockExchangeduringtheperiod1998-2002.TheeffectofcapitalstructureontheprofitabilityoflistedfirmsinGhanaisascientificareathathasnotyetbeenexploredinGhanaianfinanceliterature.
Thepaperisorganizedasfollows.Thefollowingsectiongivesareviewoftheextantliteratureonthesubject.Thenextsectiondescribesthedataandjustifiesthechoiceofthevariablesusedintheanalysis.Themodelusedintheanalysisisthenestimated.Thesubsequentsectionpresentsanddiscussestheresultsoftheempiricalanalysis.Finally,thelastsectionsummarizesthefindingsoftheresearchandalsoconcludesthediscussion.
Literatureoncapitalstructure
Therelationshipbetweencapitalstructureandfirmvaluehasbeenthesubjectofconsiderabledebate.Throughouttheliterature,debatehascenteredonwhetherthereisanoptimalcapitalstructureforanindividualfirmorwhethertheproportionofdebtusageisirrelevanttotheindividualfirm’svalue.Thecapitalstructureofafirmconcernsthemixofdebtandequitythefirmusesinitsoperation.BrealeyandMyers(2003)contendthatthechoiceofcapitalstructureisfundamentallyamarketingproblem.Theystatethatthefirmcanissuedozensofdistinctsecuritiesincountlesscombinations,butitattemptstofindtheparticularcombinationthatmaximizesmarketvalue.AccordingtoWestonandBrigham(1992),theoptimalcapitalstructureistheonethatmaximizesthemarketvalueofthefirm’soutstandingshares.
FamaandFrench(1998),analyzingtherelationshipamongtaxes,financingdecisions,andthefirm’svalue,concludedthatthedebtdoesnotconcedetaxbenefits.Besides,thehighleveragedegreegeneratesagencyproblemsamongshareholdersandcreditorsthatpredictnegativerelationshipsbetweenleverageandprofitability.Therefore,negativeinformationrelatingdebtandprofitabilityobscuresthetaxbenefitofthedebt.Boothetal.(2001)developedastudyattemptingtorelatethecapitalstructureofseveralcompaniesincountrieswithextremelydifferentfinancialmarkets.Theyconcludedthatthevariablesthataffectthechoiceofthecapitalstructureofthecompaniesaresimilar,inspiteofthegreatdifferencespresentedbythefinancialmarkets.Besides,theyconcludedthatprofitabilityhasaninverserelationshipwithdebtlevelandsizeofthefirm.Graham(2000)concludedinhisworkthatbigandprofitablecompaniespresentalowdebtrate.MesquitaandLara(2003)foundintheirstudythattherelationshipbetweenratesofreturnanddebtindicatesanegativerelationshipforlong-termfinancing.However,theyfoundapositiverelationshipforshort-termfinancingandequity.
HadlockandJames(2002)concludedthatcompaniespreferloan(debt)financingbecausetheyanticipateahigherreturn.Taub(1975)alsofoundsignificantpositivecoefficientsforfourmeasuresofprofitabilityinaregressionofthesemeasuresagainstdebtratio.PetersenandRajan(1994)identifiedthesameassociation,butforindustries.Baker(1973),whoworkedwithasimultaneousequationsmodel,andNerlove(1968)alsofoundthesametypeofassociationforindustries.RodenandLewellen(1995)foundasignificantpositiveassociationbetweenprofitabilityandtotaldebtasapercentageofthetotalbuyout-financingpackageintheirstudyonleveragedbuyouts.Champion(1999)suggestedthattheuseofleveragewasonewaytoimprovetheperformanceofanorganization.
Insummary,thereisnouniversaltheoryofthedebt-equitychoice.Differentviewshavebeenputforwardregardingthefinancingchoice.ThepresentstudyinvestigatestheeffectofcapitalstructureonprofitabilityoflistedfirmsontheGSE.
Methodology
ThisstudysampledallfirmsthathavebeenlistedontheGSEoverafive-yearperiod(1998-2002).Twenty-twofirmsqualifiedtobeincludedinthestudysample.Variablesusedfortheanalysisincludeprofitabilityandleverageratios.Profitabilityisoperationalizedusingacommonlyusedaccounting-basedmeasure:
theratioofearningsbeforeinterestandtaxes(EBIT)toequity.Theleverageratiosusedinclude:
.short-termdebttothetotalcapital;
.long-termdebttototalcapital;
.totaldebttototalcapital.
Firmsizeandsalesgrowtharealsoincludedascontrolvariables.
Thepanelcharacterofthedataallowsfortheuseofpaneldatamethodology.Paneldatainvolvesthepoolingofobservationsonacross-sectionofunitsoverseveraltimeperiodsandprovidesresultsthataresimplynotdetectableinpurecross-sectionsorpuretime-seriesstudies.Ageneralmodelforpaneldatathatallowstheresearchertoestimatepaneldatawithgreatflexibilityandformulatethedifferencesinthebehaviorofthecross-sectionelementsisadopted.Therelationshipbetweendebtandprofitabilityisthusestimatedinthefollowingregressionmodels:
ROEi,t=β0+β1SDAi,t+β2SIZEi,t+β3SGi,t+ëi,t
(1)
ROEi,t=β0+β1LDAi,t+β2SIZEi,t+β3SGi,t+ëi,t
(2)
ROEi,t=β0+β1DAi,t+β2SIZEi,t+β3SGi,t+ëi,t(3)
where:
.ROEi,tisEBITdividedbyequityforfirmiintimet;
.SDAi,tisshort-termdebtdividedbythetotalcapitalforfirmiintimet;
.LDAi,tislong-termdebtdividedbythetotalcapitalforfirmiintimet;
.DAi,tistotaldebtdividedbythetotalcapitalforfirmiintimet;
.SIZEi,tisthelogofsalesforfirmiintimet;
.SGi,tissalesgrowthforfirmiintimet;and
.ëi,tistheerrorterm.
Empiricalresults
TableIprovidesasummaryofthedescriptivestatisticsofthedependentandindependentvariablesforthesampleoffirms.Thisshowstheaverageindicatorsofvariablescomputedfromthefinancialstatements.Thereturnratemeasuredbyreturnonequity(ROE)revealsanaverageof36.94percentwithmedian28.4percent.Thispicturesuggestsagoodperformanceduringtheperiodunderstudy.TheROEmeasuresthecontributionofnetincomepercedi(localcurrency)investedbythefirms’stockholders;ameasureoftheefficiencyoftheowners’investedcapital.ThevariableSDAmeasurestheratioofshort-termdebttototalcapital.Theaveragevalueofthisvariableis0.4876withmedian0.4547.Thevalue0.4547indicatesthatapproximately45percentoftotalassetsarerepresentedbyshort-termdebts,attestingtothefactthatGhanaianfirmslargelydependonshort-termdebtforfinancingtheiroperationsduetothedifficultyinaccessinglong-termcreditfromfinancialinstitutions.Anotherreasonisduetotheunder-developednatureoftheGhanaianlong-termdebtmarket.Theratiooftotallong-termdebttototalassets(LDA)alsostandsonaverageat0.0985.Totaldebttototalcapitalratio(DA)presentsameanof0.5861.Thissuggeststhatabout58percentoftotalassetsarefinancedbydebtcapital.Theabovepositionrevealsthatthecompaniesarefinanciallyleveragedwithalargepercentageoftotaldebtbeingshort-term.
TableI.
Descriptivestatistics
MeanSDMinimumMedianMaximum
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
ROE0.36940.5186-1.04330.28363.8300
SDA0.48760.22960.09340.45471.1018
LDA0.09850.18030.00000.01860.7665
DA0.58610.20320.20540.55711.1018
SIZE18.21241.649514.187518.236122.0995
SG0.32880.345720.75000.25611.3597
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
RegressionanalysisisusedtoinvestigatetherelationshipbetweencapitalstructureandprofitabilitymeasuredbyROE.Ordinaryleastsquares(OLS)regressionresultsarepresentedinTableII.Theresultsfromtheregressionmodels
(1),
(2),and(3)denotethattheindependentvariablesexplainthedebtratiodeterminationsofthefirmsat68.3,39.7,and86.4percent,respectively.TheF-statisticsprovethevalidityoftheestimatedmodels.Also,thecoefficientsarestatisticallysignificantinlevelofconfidenceof99percent.
Theresultsinregression
(1)revealasignificantlypositiverelationshipbetweenSDAandprofitability.Thissuggeststhatshort-termdebttendstobelessexpensive,andthereforeincreasingshort-termdebtwitharelativelylowinterestratewillleadtoanincreaseinprofitlevels.Theresultsalsoshowthatprofitabilit