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Original scientific paper
https://doi.org/10.1515/crebss-2016-0001

Statistical analysis of causality between capital structure and firm profitability: Evidence from Bosnia and Herzegovina

Emina Resić   ORCID icon orcid.org/0000-0002-2293-3974 ; School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina
Jasmina Mangafić   ORCID icon orcid.org/0000-0003-2560-3230 ; School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina
Tunjo Perić   ORCID icon orcid.org/0000-0002-0886-8037 ; Faculty of Economics and Business, University of Zagreb, Croatia

Fulltext: english, pdf (362 KB) pages 1-11 downloads: 652* cite
APA 6th Edition
Resić, E., Mangafić, J. & Perić, T. (2015). Statistical analysis of causality between capital structure and firm profitability: Evidence from Bosnia and Herzegovina. Croatian Review of Economic, Business and Social Statistics, 1 (1-2), 1-11. https://doi.org/10.1515/crebss-2016-0001
MLA 8th Edition
Resić, Emina, et al. "Statistical analysis of causality between capital structure and firm profitability: Evidence from Bosnia and Herzegovina." Croatian Review of Economic, Business and Social Statistics, vol. 1, no. 1-2, 2015, pp. 1-11. https://doi.org/10.1515/crebss-2016-0001. Accessed 27 Sep. 2021.
Chicago 17th Edition
Resić, Emina, Jasmina Mangafić and Tunjo Perić. "Statistical analysis of causality between capital structure and firm profitability: Evidence from Bosnia and Herzegovina." Croatian Review of Economic, Business and Social Statistics 1, no. 1-2 (2015): 1-11. https://doi.org/10.1515/crebss-2016-0001
Harvard
Resić, E., Mangafić, J., and Perić, T. (2015). 'Statistical analysis of causality between capital structure and firm profitability: Evidence from Bosnia and Herzegovina', Croatian Review of Economic, Business and Social Statistics, 1(1-2), pp. 1-11. https://doi.org/10.1515/crebss-2016-0001
Vancouver
Resić E, Mangafić J, Perić T. Statistical analysis of causality between capital structure and firm profitability: Evidence from Bosnia and Herzegovina. Croatian Review of Economic, Business and Social Statistics [Internet]. 2015 [cited 2021 September 27];1(1-2):1-11. https://doi.org/10.1515/crebss-2016-0001
IEEE
E. Resić, J. Mangafić and T. Perić, "Statistical analysis of causality between capital structure and firm profitability: Evidence from Bosnia and Herzegovina", Croatian Review of Economic, Business and Social Statistics, vol.1, no. 1-2, pp. 1-11, 2015. [Online]. https://doi.org/10.1515/crebss-2016-0001

Abstracts
This research is designed to examine the relationship between the capital structure and profitability of non-financial firms in Bosnia and Herzegovina during the ten years period, from 2003-2012. The goal is to prove the existence of the relationship between the firm's capital structure choice and its profitability. The analysis is extended by including the debt structure and differentiating between the types of debt such as the long-term and the short-term ones. Canonical correlation and multiple regression analysis are used. The results of the multivariate canonical correlation analysis provide support to a hypothesis that the capital structure and profitability have statistically significant relationships. Furthermore, the findings provide support that firms develop different patterns of profitability depending on the capital structure choice. We found that an increasing proportion of short-term debt and long-term debt in the overall liability of the firm reduces its profitability.

Keywords
capital structure; profitability; debt level; multivariate canonical correlation; multiple regression

Hrčak ID: 152602

URI
https://hrcak.srce.hr/152602

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