Bayesian Identification of the Predictors for Capital Structure in Egypt
The practice of capital structure decisions is dominated by three theories of capital structure; trade-off, pecking order, and free cash flow. None of the three theories presents a complete answer to the determinants of capital structure. This study utilizes the Bayesian quot;Stochastic Search Variable Selectionquot; (SSVS) procedure to identify the predictors of corporate capital structure. The SSVS procedure avoids the overwhelming burden of computing the posterior distribution over all possible models by employing the Gibbs sampler to simulate a sample from the posterior distribution and to identify the best subset, which is the one with highest frequency in the sample. The results show that the practice of capital structure decisions in Egypt is affected by the determinants of two theories; trade-off theory and pecking-order theory
Year of publication: |
[2005]
|
---|---|
Authors: | Ismail, Mohamed A. |
Other Persons: | Eldomiaty, Tarek Ibrahim (contributor) |
Publisher: |
[2005]: [S.l.] : SSRN |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Modeling capital structure decisions in a transition market : empirical analysis of firms in Egypt
Eldomiaty, Tarek Ibrahim, (2009)
-
Eldomiaty, Tarek Ibrahim, (2006)
-
Eldomiaty, Tarek Ibrahim, (2014)
- More ...