Effect of Speed of Adjustments on Capital Structure Decision: A Conceptual Analysis


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Authors

  • Emmanuel Kukah Damina Department of Business Administration, Faculty of Management, Nile University of Nigeria, Nigeria. https://orcid.org/0000-0001-6406-9064
  • Taiwo Muritala Department of Business Administration, Faculty of Management, Nile University of Nigeria, Nigeria.
  • Abbas Umar Ibrahim Department of Business Administration, Faculty of Management, Nile University of Nigeria, Nigeria.

DOI:

https://doi.org/10.32479/ijefi.13469

Keywords:

Speed of Adjustment, Capital Structure Decision, Generalized Predictive Model

Abstract

This study conceptually examines the effect of speed of adjustments on capital structure decisions. The study provides a conceptual and theoretical underpinning focused on the review of several studies on the effect of speed of adjustments on capital structure decisions. The study discovered firm size, assets, growth, profitability, and other factors that influence the speed of adjustments. The findings from a prior study showed that estimators of the speed of adjustments include the regression analysis, generalized methods of moments (GMM) and stochastic frontier analysis (SFA) models without a predictive model. The study recommends for a generalized predictive model that determines the speed of adjustments to the optimum capital structure of firms.

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Author Biographies

Emmanuel Kukah Damina, Department of Business Administration, Faculty of Management, Nile University of Nigeria, Nigeria.

I am a PhD Candidate in the faculty of management, Department of Business Administration, Nile University of Nigeria.

Taiwo Muritala, Department of Business Administration, Faculty of Management, Nile University of Nigeria, Nigeria.

Senior Lecturer – Nile University of Nigeria Department - Business Administration Ph.D. (Accounting & Finance – University of Ilorin, Nigeria) M.Sc. (Financial Services, Risks & Operations - Glasgow Caledonian University, UK) Certificate (Successful Change Management – University of Oxford, UK) Associate & Certified Member – (IPFM – London, UK) Professional Member - (Chartered Institute of Bankers of Nigeria - CIBN) Member – (Chartered Financial Analyst - CFA) Member - (Professional Risk Managers' International Association - PRMIA) Affiliate Member - (Global Association of Risk Professionals - GARP)  

Abbas Umar Ibrahim, Department of Business Administration, Faculty of Management, Nile University of Nigeria, Nigeria.

Head of Department, Faculty of Management, Department of Business Administration. Nile University of Nigeria.

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Published

2022-11-23

How to Cite

Damina, E. K., Muritala, T., & Ibrahim, A. U. (2022). Effect of Speed of Adjustments on Capital Structure Decision: A Conceptual Analysis. International Journal of Economics and Financial Issues, 12(6), 15–21. https://doi.org/10.32479/ijefi.13469

Issue

Vol. 12 No. 6 (2022)

Section

Articles