Johnson, G L (2020) An examination of the effect of capital structure on financial performance among construction firms in Romania 2010-2016. PhD thesis, Capella University, USA.
Abstract
The focus of the research was to determine the effects of capital structure on financial performance of listed construction firms in the Bucharest Stock Exchange in Romania. There is a theoretical assumption that a firm’s value is predicated on future operating income generated from assets and, therefore, its choice of capital structure is irrelevant. Multiple linear regression was utilized to predict the value of return on assets on long term debt to total equity, financial leverage, tangible asset, asset turnover, net income, growth, and capital adequacy. These variables were employed to determine whether capital structure choices impact financial performance of listed construction firms in Romania. Secondary data were collected from 2010 to 2016 and analyzed using SPSS software. The study attempted to answer seven research questions: (a) How well does long-term debt to total equity predict return on asset amongst Romanian construction firms? (b) How well does financial leverage predict return on asset amongst Romanian construction firms? (c) How well does tangible asset predict return on asset amongst Romanian construction firms? (d) How well does asset turnover predict return on asset amongst Romanian construction firms? (e) How well does net income predict return on asset amongst Romanian construction firms? (f) How well does growth predict return on asset amongst Romanian construction firms? and (g) How well does capital adequacy predict return on asset amongst Romanian construction firms? A quantitative methodology was used for the research. The target population was 30 construction firms listed on the Bucharest Stock Exchange from 2010 to 2016. Statistical analyses were conducted using multiple regression techniques which included descriptive statistics and analysis of variance. Results of the investigation revealed that there is no statistical significance between capital structure and financial performance.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Machnic, J |
| Uncontrolled Keywords: | Romania; capital structure; construction firms; income; multiple regression; population |
| Index terms: | turnover, investigation, secondary data, capital structure, income, return on assets, population, statistics, financial performance, variance, statistical analysis, multiple-regression, methodology, Romania, construction firm |
| Subjects: | research methods, mathematical modelling, demography, data science, business analysis, statistical analysis, organization, economic analysis, data collection methods, Geography, business management, measurement and scaling |
| Topics: | Research Practice, Geographical Context, Urban Studies, Business Strategy |
| Descriptive scope: | 5 PCTEA |
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