Research on Bank Relationship and Its Impact on Capital Structure: A Study of Listed Companies on Kse Pakistan
- DOI
- 10.2991/msmi-16.2016.18How to use a DOI?
- Keywords
- Multi-bank relationship (MBR); Capital structure; Bank relation; Debt to equity
- Abstract
Business firms are meant for profitability, growth and wealth maximization. In order to improve and investigate the factors which are influencing a firm performance are extensively studied by many researchers. Banking being the major source of financing to such firms is being targeted by researcher in the said perspective. A new idea has been discussed in this research by including banking relationship as a determinant of capital structure of the firm. This research has obtained the data for 180 listed firms for a period of 2008-2013 and investigates the impact of bank-firm relationship on the debt to equity ratio of the firm. The result shows that the dependent variable is significantly influenced by number of banking relationship a firm is maintaining. The dummy used for multiple bank relationship is however insignificant in order to explain the variations in capital structure of the firm. In the lights of the results it can be said that the optimal number of banking relationship is needed to maintain a particular capital structure ratio and ultimately the performance as the interest rates in developing countries such as Pakistan are quite higher than those of developed ones.
- Copyright
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Jahanzaib Sultan AU - Fahad Javed AU - Qing Yang PY - 2016/08 DA - 2016/08 TI - Research on Bank Relationship and Its Impact on Capital Structure: A Study of Listed Companies on Kse Pakistan BT - Proceedings of the 2016 International Conference on Management Science and Management Innovation PB - Atlantis Press SP - 83 EP - 86 SN - 2352-5428 UR - https://doi.org/10.2991/msmi-16.2016.18 DO - 10.2991/msmi-16.2016.18 ID - Sultan2016/08 ER -