The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach

Tibuhinda Ngonzi; Andrew Jisaba

doi:doi:10.11648/j.jfa.20170501.12

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The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach

Tibuhinda Ngonzi, Andrew Jisaba

Published in Journal of Finance and Accounting (Volume 5, Issue 1)

Received: 20 December 2016 Accepted: 28 December 2016 Published: 21 January 2017

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Abstract

The implementation of capital structure decisions may take place at a point in time, while their effects are realized over time. The predisposition of the capital structure modifying factors as its ‘determining variables’ has an implication of posing the variables as drivers of capital structure decisions. However, the evidence research in corporate finance centres on determining variables ex-post at the influence of positive accounting theory and the presumptions of the tradeoff and pecking order theories. The impact of this perspective is realized in theoretical and operational controversies. This study uses ordinal regression to handle an integrated analysis of lagged variables on debt and investment opportunity financing and managerial subjective data to investigate their impact on capital structure. The outcome is such that there is no emergent pattern to suggest that there is any pecking order or capital structure monitoring, which drives decisions on capital structure a prior. The study suggests an understanding of the ‘determinants of capital structure’ as factors that operate in-situ to modify the proportions of capital and debt in assets through market driven financial transactions.

Published in	Journal of Finance and Accounting (Volume 5, Issue 1)
DOI	10.11648/j.jfa.20170501.12
Page(s)	12-23
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), 2017. Published by Science Publishing Group

Keywords

Ex-post, Ex-ante, Capital Structure, Integrated Analysis, In-Situ

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APA Style

Tibuhinda Ngonzi, Andrew Jisaba. (2017). The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach. Journal of Finance and Accounting, 5(1), 12-23. https://doi.org/10.11648/j.jfa.20170501.12

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ACS Style

Tibuhinda Ngonzi; Andrew Jisaba. The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach. J. Finance Account. 2017, 5(1), 12-23. doi: 10.11648/j.jfa.20170501.12

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AMA Style

Tibuhinda Ngonzi, Andrew Jisaba. The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach. J Finance Account. 2017;5(1):12-23. doi: 10.11648/j.jfa.20170501.12

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@article{10.11648/j.jfa.20170501.12,
  author = {Tibuhinda Ngonzi and Andrew Jisaba},
  title = {The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach},
  journal = {Journal of Finance and Accounting},
  volume = {5},
  number = {1},
  pages = {12-23},
  doi = {10.11648/j.jfa.20170501.12},
  url = {https://doi.org/10.11648/j.jfa.20170501.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20170501.12},
  abstract = {The implementation of capital structure decisions may take place at a point in time, while their effects are realized over time. The predisposition of the capital structure modifying factors as its ‘determining variables’ has an implication of posing the variables as drivers of capital structure decisions. However, the evidence research in corporate finance centres on determining variables ex-post at the influence of positive accounting theory and the presumptions of the tradeoff and pecking order theories. The impact of this perspective is realized in theoretical and operational controversies. This study uses ordinal regression to handle an integrated analysis of lagged variables on debt and investment opportunity financing and managerial subjective data to investigate their impact on capital structure. The outcome is such that there is no emergent pattern to suggest that there is any pecking order or capital structure monitoring, which drives decisions on capital structure a prior. The study suggests an understanding of the ‘determinants of capital structure’ as factors that operate in-situ to modify the proportions of capital and debt in assets through market driven financial transactions.},
 year = {2017}
}

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TY  - JOUR
T1  - The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach
AU  - Tibuhinda Ngonzi
AU  - Andrew Jisaba
Y1  - 2017/01/21
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T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 12
EP  - 23
PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.jfa.20170501.12
AB  - The implementation of capital structure decisions may take place at a point in time, while their effects are realized over time. The predisposition of the capital structure modifying factors as its ‘determining variables’ has an implication of posing the variables as drivers of capital structure decisions. However, the evidence research in corporate finance centres on determining variables ex-post at the influence of positive accounting theory and the presumptions of the tradeoff and pecking order theories. The impact of this perspective is realized in theoretical and operational controversies. This study uses ordinal regression to handle an integrated analysis of lagged variables on debt and investment opportunity financing and managerial subjective data to investigate their impact on capital structure. The outcome is such that there is no emergent pattern to suggest that there is any pecking order or capital structure monitoring, which drives decisions on capital structure a prior. The study suggests an understanding of the ‘determinants of capital structure’ as factors that operate in-situ to modify the proportions of capital and debt in assets through market driven financial transactions.
VL  - 5
IS  - 1
ER  -

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Author Information

Tibuhinda Ngonzi

Department of Accountancy and Finance, St. Augustine University of Tanzania, Mwanza, Tanzania
Andrew Jisaba

Department of Accountancy and Finance, St. Augustine University of Tanzania, Mwanza, Tanzania

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APA Style

Tibuhinda Ngonzi, Andrew Jisaba. (2017). The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach. Journal of Finance and Accounting, 5(1), 12-23. https://doi.org/10.11648/j.jfa.20170501.12

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ACS Style

Tibuhinda Ngonzi; Andrew Jisaba. The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach. J. Finance Account. 2017, 5(1), 12-23. doi: 10.11648/j.jfa.20170501.12

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AMA Style

Tibuhinda Ngonzi, Andrew Jisaba. The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach. J Finance Account. 2017;5(1):12-23. doi: 10.11648/j.jfa.20170501.12

Copy | Download

@article{10.11648/j.jfa.20170501.12,
  author = {Tibuhinda Ngonzi and Andrew Jisaba},
  title = {The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach},
  journal = {Journal of Finance and Accounting},
  volume = {5},
  number = {1},
  pages = {12-23},
  doi = {10.11648/j.jfa.20170501.12},
  url = {https://doi.org/10.11648/j.jfa.20170501.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20170501.12},
  abstract = {The implementation of capital structure decisions may take place at a point in time, while their effects are realized over time. The predisposition of the capital structure modifying factors as its ‘determining variables’ has an implication of posing the variables as drivers of capital structure decisions. However, the evidence research in corporate finance centres on determining variables ex-post at the influence of positive accounting theory and the presumptions of the tradeoff and pecking order theories. The impact of this perspective is realized in theoretical and operational controversies. This study uses ordinal regression to handle an integrated analysis of lagged variables on debt and investment opportunity financing and managerial subjective data to investigate their impact on capital structure. The outcome is such that there is no emergent pattern to suggest that there is any pecking order or capital structure monitoring, which drives decisions on capital structure a prior. The study suggests an understanding of the ‘determinants of capital structure’ as factors that operate in-situ to modify the proportions of capital and debt in assets through market driven financial transactions.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Ex-ante/Ex-post Perspectives of the Determinants of Capital Structure: An Integrated Analysis Approach
AU  - Tibuhinda Ngonzi
AU  - Andrew Jisaba
Y1  - 2017/01/21
PY  - 2017
N1  - https://doi.org/10.11648/j.jfa.20170501.12
DO  - 10.11648/j.jfa.20170501.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 12
EP  - 23
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20170501.12
AB  - The implementation of capital structure decisions may take place at a point in time, while their effects are realized over time. The predisposition of the capital structure modifying factors as its ‘determining variables’ has an implication of posing the variables as drivers of capital structure decisions. However, the evidence research in corporate finance centres on determining variables ex-post at the influence of positive accounting theory and the presumptions of the tradeoff and pecking order theories. The impact of this perspective is realized in theoretical and operational controversies. This study uses ordinal regression to handle an integrated analysis of lagged variables on debt and investment opportunity financing and managerial subjective data to investigate their impact on capital structure. The outcome is such that there is no emergent pattern to suggest that there is any pecking order or capital structure monitoring, which drives decisions on capital structure a prior. The study suggests an understanding of the ‘determinants of capital structure’ as factors that operate in-situ to modify the proportions of capital and debt in assets through market driven financial transactions.
VL  - 5
IS  - 1
ER  -

Copy | Download