Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh

G. M. Wali Ullah; Mohammad Minhaz Uddin; Mohammad Abdullah; Md. Nazmul Islam

doi:doi:10.11648/j.jbed.20170201.14

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Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh

G. M. Wali Ullah, Mohammad Minhaz Uddin, Mohammad Abdullah, Md. Nazmul Islam

Received: 31 October 2016 Accepted: 23 November 2016 Published: 3 January 2017

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Abstract

Capital Structure is one of the most important and talked about issues in the field of finance. The fundamental components of capital structure are debt and equity of a company. Though different researchers provide different comment on the theory of capital structure, majority of theories and findings seem to contradict with each other in terms of developed and developing economy. Practitioners as well as researchers all over the world have identified that capital structure has impact on the firm performance and debt maturity. Research in capital structure is not adequate and require intense empirical work in Bangladesh. With that idea, objective of this study is to investigate the significance of determining factors of capital structure on debt maturity of the textile industry of Bangladesh. This article provided an analysis of various determining factors of capital structure and their significance on debt maturity. For this purpose, data of 19 DSE stock listed company for the time period of (2010 – 2015) 6 years were collected. Pooled data methodology has been used to find out the regression based on data collection. Findings of this data showed that age has significant relationship in case of all ratios considered under debt maturity. Growth opportunity was found as insignificant on the debt maturity. Profitability was found to have a significant relationship with total debt ratio (RTD) on the other hand converse relationship with Short term debt (RSD) and Long term debt ratio (RLD).

DOI	10.11648/j.jbed.20170201.14
Published in	Journal of Business and Economic Development (Volume 2, Issue 1, February 2017)
Page(s)	31-37
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Capital Structure, Leverage, Tangibility, Profitability, Ready-Made Garments, Textile

References

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APA Style

G. M. Wali Ullah, Mohammad Minhaz Uddin, Mohammad Abdullah, Md. Nazmul Islam. (2017). Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh. Journal of Business and Economic Development, 2(1), 31-37. https://doi.org/10.11648/j.jbed.20170201.14

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ACS Style

G. M. Wali Ullah; Mohammad Minhaz Uddin; Mohammad Abdullah; Md. Nazmul Islam. Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh. J. Bus. Econ. Dev. 2017, 2(1), 31-37. doi: 10.11648/j.jbed.20170201.14

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AMA Style

G. M. Wali Ullah, Mohammad Minhaz Uddin, Mohammad Abdullah, Md. Nazmul Islam. Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh. J Bus Econ Dev. 2017;2(1):31-37. doi: 10.11648/j.jbed.20170201.14

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@article{10.11648/j.jbed.20170201.14,
  author = {G. M. Wali Ullah and Mohammad Minhaz Uddin and Mohammad Abdullah and Md. Nazmul Islam},
  title = {Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {1},
  pages = {31-37},
  doi = {10.11648/j.jbed.20170201.14},
  url = {https://doi.org/10.11648/j.jbed.20170201.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170201.14},
  abstract = {Capital Structure is one of the most important and talked about issues in the field of finance. The fundamental components of capital structure are debt and equity of a company. Though different researchers provide different comment on the theory of capital structure, majority of theories and findings seem to contradict with each other in terms of developed and developing economy. Practitioners as well as researchers all over the world have identified that capital structure has impact on the firm performance and debt maturity. Research in capital structure is not adequate and require intense empirical work in Bangladesh. With that idea, objective of this study is to investigate the significance of determining factors of capital structure on debt maturity of the textile industry of Bangladesh. This article provided an analysis of various determining factors of capital structure and their significance on debt maturity. For this purpose, data of 19 DSE stock listed company for the time period of (2010 – 2015) 6 years were collected. Pooled data methodology has been used to find out the regression based on data collection. Findings of this data showed that age has significant relationship in case of all ratios considered under debt maturity. Growth opportunity was found as insignificant on the debt maturity. Profitability was found to have a significant relationship with total debt ratio (RTD) on the other hand converse relationship with Short term debt (RSD) and Long term debt ratio (RLD).},
 year = {2017}
}

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TY - JOUR
T1 - Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh
AU - G. M. Wali Ullah
AU - Mohammad Minhaz Uddin
AU - Mohammad Abdullah
AU - Md. Nazmul Islam
Y1 - 2017/01/03
PY - 2017
N1 - https://doi.org/10.11648/j.jbed.20170201.14
DO - 10.11648/j.jbed.20170201.14
T2 - Journal of Business and Economic Development
JF - Journal of Business and Economic Development
JO - Journal of Business and Economic Development
SP - 31
EP - 37
PB - Science Publishing Group
SN - 2637-3874
UR - https://doi.org/10.11648/j.jbed.20170201.14
AB - Capital Structure is one of the most important and talked about issues in the field of finance. The fundamental components of capital structure are debt and equity of a company. Though different researchers provide different comment on the theory of capital structure, majority of theories and findings seem to contradict with each other in terms of developed and developing economy. Practitioners as well as researchers all over the world have identified that capital structure has impact on the firm performance and debt maturity. Research in capital structure is not adequate and require intense empirical work in Bangladesh. With that idea, objective of this study is to investigate the significance of determining factors of capital structure on debt maturity of the textile industry of Bangladesh. This article provided an analysis of various determining factors of capital structure and their significance on debt maturity. For this purpose, data of 19 DSE stock listed company for the time period of (2010 – 2015) 6 years were collected. Pooled data methodology has been used to find out the regression based on data collection. Findings of this data showed that age has significant relationship in case of all ratios considered under debt maturity. Growth opportunity was found as insignificant on the debt maturity. Profitability was found to have a significant relationship with total debt ratio (RTD) on the other hand converse relationship with Short term debt (RSD) and Long term debt ratio (RLD).
VL - 2
IS - 1
ER -

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Author Information

G. M. Wali Ullah

School of Business, Independent University, Bangladesh, Dhaka, Bangladesh
Mohammad Minhaz Uddin

School of Business, Independent University, Bangladesh, Dhaka, Bangladesh
Mohammad Abdullah

School of Business, Independent University, Bangladesh, Dhaka, Bangladesh
Md. Nazmul Islam

School of Business, Independent University, Bangladesh, Dhaka, Bangladesh

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APA Style

G. M. Wali Ullah, Mohammad Minhaz Uddin, Mohammad Abdullah, Md. Nazmul Islam. (2017). Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh. Journal of Business and Economic Development, 2(1), 31-37. https://doi.org/10.11648/j.jbed.20170201.14

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ACS Style

G. M. Wali Ullah; Mohammad Minhaz Uddin; Mohammad Abdullah; Md. Nazmul Islam. Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh. J. Bus. Econ. Dev. 2017, 2(1), 31-37. doi: 10.11648/j.jbed.20170201.14

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AMA Style

G. M. Wali Ullah, Mohammad Minhaz Uddin, Mohammad Abdullah, Md. Nazmul Islam. Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh. J Bus Econ Dev. 2017;2(1):31-37. doi: 10.11648/j.jbed.20170201.14

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@article{10.11648/j.jbed.20170201.14,
  author = {G. M. Wali Ullah and Mohammad Minhaz Uddin and Mohammad Abdullah and Md. Nazmul Islam},
  title = {Determinants of Capital Structure and Its Impact on the Debt Maturity of the Textile Industry of Bangladesh},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {1},
  pages = {31-37},
  doi = {10.11648/j.jbed.20170201.14},
  url = {https://doi.org/10.11648/j.jbed.20170201.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170201.14},
  abstract = {Capital Structure is one of the most important and talked about issues in the field of finance. The fundamental components of capital structure are debt and equity of a company. Though different researchers provide different comment on the theory of capital structure, majority of theories and findings seem to contradict with each other in terms of developed and developing economy. Practitioners as well as researchers all over the world have identified that capital structure has impact on the firm performance and debt maturity. Research in capital structure is not adequate and require intense empirical work in Bangladesh. With that idea, objective of this study is to investigate the significance of determining factors of capital structure on debt maturity of the textile industry of Bangladesh. This article provided an analysis of various determining factors of capital structure and their significance on debt maturity. For this purpose, data of 19 DSE stock listed company for the time period of (2010 – 2015) 6 years were collected. Pooled data methodology has been used to find out the regression based on data collection. Findings of this data showed that age has significant relationship in case of all ratios considered under debt maturity. Growth opportunity was found as insignificant on the debt maturity. Profitability was found to have a significant relationship with total debt ratio (RTD) on the other hand converse relationship with Short term debt (RSD) and Long term debt ratio (RLD).},
 year = {2017}
}

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