Change in Corporate Debt Levels in South Africa from 1994 to 2016

dc.contributor.advisorHolman, Glen
dc.contributor.authorvan der Westhuizen, Kyla
dc.date.accessioned2021-03-03T06:26:39Z
dc.date.available2021-03-03T06:26:39Z
dc.date.issued2020
dc.date.updated2021-03-02T16:17:49Z
dc.description.abstractThis paper investigated the change in corporate debt levels in South Africa from 1994 to 2016. Included is an analysis of factors that companies take into consideration when determining the company's capital structure. This study used data from companies, largely from the mining sector, within sectors listed on the Johannesburg Stock Exchange (JSE), including chemicals, general industries, oil and gas. Four different leverage measures were used to determine the change in capital structure for the period under review, as well as six of the most commonly used determinants of capital structure. A high-level interpretation of the results reflected the following; a slight but relatively consistent increase in the use of debt relative to equity over the period for both the total sample and the mining sector. An increase in the use of long- relative to short term debt was also found, as well as a convergence between the use of current and non-current liabilities. Results from the analysis of the capital structure determinants varied, with some showing statistical significance. Asset tangibility was positively correlated to debt, while profitability and growth had a negative relationship. The relationship between company size, tax and cost of debt and leverage was varied.
dc.identifier.apacitationvan der Westhuizen, K. (2020). <i>Change in Corporate Debt Levels in South Africa from 1994 to 2016</i>. (). ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/33092en_ZA
dc.identifier.chicagocitationvan der Westhuizen, Kyla. <i>"Change in Corporate Debt Levels in South Africa from 1994 to 2016."</i> ., ,Faculty of Commerce ,Department of Finance and Tax, 2020. http://hdl.handle.net/11427/33092en_ZA
dc.identifier.citationvan der Westhuizen, K. 2020. Change in Corporate Debt Levels in South Africa from 1994 to 2016. . ,Faculty of Commerce ,Department of Finance and Tax. http://hdl.handle.net/11427/33092en_ZA
dc.identifier.ris TY - Master Thesis AU - van der Westhuizen, Kyla AB - This paper investigated the change in corporate debt levels in South Africa from 1994 to 2016. Included is an analysis of factors that companies take into consideration when determining the company's capital structure. This study used data from companies, largely from the mining sector, within sectors listed on the Johannesburg Stock Exchange (JSE), including chemicals, general industries, oil and gas. Four different leverage measures were used to determine the change in capital structure for the period under review, as well as six of the most commonly used determinants of capital structure. A high-level interpretation of the results reflected the following; a slight but relatively consistent increase in the use of debt relative to equity over the period for both the total sample and the mining sector. An increase in the use of long- relative to short term debt was also found, as well as a convergence between the use of current and non-current liabilities. Results from the analysis of the capital structure determinants varied, with some showing statistical significance. Asset tangibility was positively correlated to debt, while profitability and growth had a negative relationship. The relationship between company size, tax and cost of debt and leverage was varied. DA - 2020_ DB - OpenUCT DP - University of Cape Town KW - Financial and Risk Management KW - Capital Structure Theory KW - Capital Structure Determinants KW - Interest Rates KW - Capital Market KW - Mining LK - https://open.uct.ac.za PY - 2020 T1 - Change in Corporate Debt Levels in South Africa from 1994 to 2016 TI - Change in Corporate Debt Levels in South Africa from 1994 to 2016 UR - http://hdl.handle.net/11427/33092 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/33092
dc.identifier.vancouvercitationvan der Westhuizen K. Change in Corporate Debt Levels in South Africa from 1994 to 2016. []. ,Faculty of Commerce ,Department of Finance and Tax, 2020 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/33092en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Finance and Tax
dc.publisher.facultyFaculty of Commerce
dc.subjectFinancial and Risk Management
dc.subjectCapital Structure Theory
dc.subjectCapital Structure Determinants
dc.subjectInterest Rates
dc.subjectCapital Market
dc.subjectMining
dc.titleChange in Corporate Debt Levels in South Africa from 1994 to 2016
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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