Evolution of Corporate Leverage on the JSE from 1994 to 2016

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dc.contributor.advisorHolman, Glen
dc.contributor.authorMokoko, Tseko
dc.date.accessioned2023-03-30T12:26:58Z
dc.date.available2023-03-30T12:26:58Z
dc.date.issued2022
dc.date.updated2023-03-30T10:15:24Z
dc.description.abstractIn this paper, an attempt has been made to examine the evolution of corporate leverage of companies listed on the Johannesburg Stock Exchange (JSE) from 1994 to 2016. Analysis of the data set is organized around a sample of 126 listed companies across twelve sub-sector industries, namely, Banks, Financial Services, Life Insurance, Fixed Line Telecommunications, Nonlife Insurance, Health Care Equipment and Services, Pharmaceuticals and Biotechnology, Media, Technology Hardware and Equipment, Software and Computer Services, Electronic and Electrical Equipment and Support Services. 621 delisted companies were also briefly analysed to eliminate survivorship bias. Results of multiple regressions using two primary leverage measures and six commonly used determinants of capital structure were varied. Tangibility and growth were negatively related to debt while cost of debt was positively related to debt. Firm size, profitability and corporate tax rate yielded a varied relationship with corporate leverage. Only the growth capital structure determinant showed statistical significance. The overall findings indicate a rise in corporate leverage that coincides in tandem with major local and international economic events.
dc.identifier.apacitationMokoko, T. (2022). <i>Evolution of Corporate Leverage on the JSE from 1994 to 2016</i>. (). ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/37564en_ZA
dc.identifier.chicagocitationMokoko, Tseko. <i>"Evolution of Corporate Leverage on the JSE from 1994 to 2016."</i> ., ,Faculty of Commerce ,Department of Finance and Tax, 2022. http://hdl.handle.net/11427/37564en_ZA
dc.identifier.citationMokoko, T. 2022. Evolution of Corporate Leverage on the JSE from 1994 to 2016. . ,Faculty of Commerce ,Department of Finance and Tax. http://hdl.handle.net/11427/37564en_ZA
dc.identifier.ris TY - Master Thesis AU - Mokoko, Tseko AB - In this paper, an attempt has been made to examine the evolution of corporate leverage of companies listed on the Johannesburg Stock Exchange (JSE) from 1994 to 2016. Analysis of the data set is organized around a sample of 126 listed companies across twelve sub-sector industries, namely, Banks, Financial Services, Life Insurance, Fixed Line Telecommunications, Nonlife Insurance, Health Care Equipment and Services, Pharmaceuticals and Biotechnology, Media, Technology Hardware and Equipment, Software and Computer Services, Electronic and Electrical Equipment and Support Services. 621 delisted companies were also briefly analysed to eliminate survivorship bias. Results of multiple regressions using two primary leverage measures and six commonly used determinants of capital structure were varied. Tangibility and growth were negatively related to debt while cost of debt was positively related to debt. Firm size, profitability and corporate tax rate yielded a varied relationship with corporate leverage. Only the growth capital structure determinant showed statistical significance. The overall findings indicate a rise in corporate leverage that coincides in tandem with major local and international economic events. DA - 2022_ DB - OpenUCT DP - University of Cape Town KW - Capital Structure Theory KW - Capital Structure Determinants KW - JSE KW - Capital Markets KW - Banks KW - Financial Services KW - Life Insurance KW - Fixed Line Telecommunications KW - Nonlife Insurance KW - Health Care Equipment and Services KW - Pharmaceuticals and Biotechnology KW - Media KW - Technology Hardware and Equipment KW - Software and Computer Services KW - Electronic and Electrical Equipment KW - Support Services LK - https://open.uct.ac.za PY - 2022 T1 - Evolution of Corporate Leverage on the JSE from 1994 to 2016 TI - Evolution of Corporate Leverage on the JSE from 1994 to 2016 UR - http://hdl.handle.net/11427/37564 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/37564
dc.identifier.vancouvercitationMokoko T. Evolution of Corporate Leverage on the JSE from 1994 to 2016. []. ,Faculty of Commerce ,Department of Finance and Tax, 2022 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/37564en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Finance and Tax
dc.publisher.facultyFaculty of Commerce
dc.subjectCapital Structure Theory
dc.subjectCapital Structure Determinants
dc.subjectJSE
dc.subjectCapital Markets
dc.subjectBanks
dc.subjectFinancial Services
dc.subjectLife Insurance
dc.subjectFixed Line Telecommunications
dc.subjectNonlife Insurance
dc.subjectHealth Care Equipment and Services
dc.subjectPharmaceuticals and Biotechnology
dc.subjectMedia
dc.subjectTechnology Hardware and Equipment
dc.subjectSoftware and Computer Services
dc.subjectElectronic and Electrical Equipment
dc.subjectSupport Services
dc.titleEvolution of Corporate Leverage on the JSE from 1994 to 2016
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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