Determinants of Capital Structure for Listed Retailing Firms on the JSE

J.E. Tazvivinga. M.M. Mouton and L.Pelcher

Vol 17 | Issue 1 pp. 1-15


The retailing industry of South Africa is one of the biggest in the African continent. The study examined the determinants of capital structure for listed retailing firms on the Johannesburg Securities Exchange, the 16th largest Securities Exchange in the world and an emblematic of emerging economies. Quantitative data was collected across 17 retailing firms from 2009-2018. Results from panel regression analysis supported both trade-off and pecking order theories while indicating that firm size, firm age, profitability, growth opportunities and tangibility are the significant determinants of capital structure for listed retailing firms. Liquidity was found to be insignificant.

Keywords: Capital structure, retailing industry, firm specific factors, pecking order theory, trade-off theory

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