Journal of Global Information Management · 2023 · 14 citations · 51 references
ManagementFinanceFinancial ManagementCapital StructureCorporate FinanceFinancial Statement AnalysisCapital Structure AnalysisCapital Structure DeterminantsCapital Structure ManagementCapital Structure TheoryFinancial ResourcesFirm ResourcesDebt-to-asset RatioDebt-to-equity Ratio AnalysisEquity RatioEquity-to-asset RatioFinancial Performance ManagementFirm Age
The authors adopt the resource-based view (RBV) and information processing theory to discover the problems that impact the capital structure of financial institutions in the UK. Five firm-level explanatory variables (profitability, size, tangibility, age, and growth) were selected. The relevant capital structure measure was then regressed against the dependent variable leverage (debt-to-equity ratio). Consequently, correlation and multivariate regressions are applied to firm financial data from the selected financial institutions during the fiscal years 2011–2022. The primary conclusions of the study indicate that important information resources management variables for financial institutions in the UK are profitability and size. While the two other factors, profitability and growth, exhibit negative associations with capital structure, the remaining four variables, tangibility, size, age, and profitability, did not. The study reveals that optimal determinants of information resources management enhance financial performance in the case of top UK banks.
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Determinants of corporate borrowing
Stewart C. Myers · Journal of Financial Economics · 1977 · 13.4K citations