Palestine and Saudi Arabia, Two Different Countries with Two Different Conditions: Are the Determinants of Capital Structure of Corresponding Markets the Same?

Authors

  • Bashar K. Abu Khalaf The University of Jordan
  • Bara Al-Nees
  • Lilana Sukkari

Abstract

This paper investigates the determinants of capital structure of two different countries, Saudi Arabia and Palestine. The analysis employs panel data analysis and seemingly unrelated regression based on a sample of 21 listed Palestinian companies and 61 Saudi companies. The study in this paper extends from 2005 to 2015. The findings of this study indicate that the leverage ratios of both Palestinian and Saudi firms are low. Moreover, the most common determinants of capital structure are found and significantly affecting both Palestinian and Saudi firms, finally the differences in the magnitudes and sign of the coefficients are because of country-level differences and not due to firm-level differences. 

Keywords: capital structure, financial markets, Saudi Arabia, Palestine

JEL Classifications: D53, E44, G31

Downloads

Download data is not yet available.

Author Biography

Bashar K. Abu Khalaf, The University of Jordan

The University of JordanSchool of BusinessFinance DepartmentAssistant Lecturer

Downloads

Published

2017-04-03

How to Cite

Abu Khalaf, B. K., Al-Nees, B., & Sukkari, L. (2017). Palestine and Saudi Arabia, Two Different Countries with Two Different Conditions: Are the Determinants of Capital Structure of Corresponding Markets the Same?. International Journal of Economics and Financial Issues, 7(2), 365–369. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/3891

Issue

Section

Articles