- Title
- The Impact of capital structure on performance of banks in South Africa
- Creator
- Jiza, Andiswa Abongile
- Subject
- Banks and banking Capital management and capital structure
- Date
- 2019
- Type
- Thesis
- Type
- Masters
- Type
- MCom (Economics)
- Identifier
- http://hdl.handle.net/10353/16895
- Identifier
- vital:40783
- Description
- The study examined the relationship between capital structure and bank performance in South Africa using five small banks and the two big banks from 2002-2017. Fixed effects model, Pooled and the random effects model were utilised to test the relationship between capital structure and bank performance. Return on assets and the earnings per share were used as a measure for financial performance while the debt to equity ratio and the debt to assets ratio were used as proxies for capital structure. The results show that there is a negative significant relationship between return on assets and the two capital structure measures meaning that higher leverage ratios lead to lower profits measured by return on assets. while there is a negative significant relationship between earnings per share and the capital structure meaning that higher leverage ratios lead to lower profits. The study recommends that financial managers of banks should maintain lower debt than equity in their mix of capital structure as more debts is not good for the performance of banks.
- Format
- 131 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
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UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | JIZA AA 201201212 MCOM.pdf | 885 KB | Adobe Acrobat PDF | View Details Download |