04. SDU Business School

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Browsing 04. SDU Business School by Author "Akhat I."

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    Capital structure and corporate strategy: An analysis of linkage between them
    (2018) Akhat I.
    Capital structure decision is considered one of most debated topics in corporate finance, being several theories and empirical studies developed since the irrelevance of financing decisions in value creation of the firm with Modigliani and Miller. Notwithstanding, the puzzle of firm’s financial resources is still unsolved, and there is. not a single theory capable of incorporating all the determinants in this dynamic process . For this reason, the present master thesis aims to introduce a corporate strategy approach in the capital structure decision, focusing on Diversification Strategies. Using a sample of 28 Kazakhstani publicly available companies, from 2012 until 2016, static panel data model was developed for the Leverage measure — Debt/equity ratio — as dependent variables, being Product Diversification introduced as explanatory variables. The results evidence that Product Diversification is not significant in explaining Leverage ratios.