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Evolution of Corporate Leverage on the JSE from 1994 to 2016
In this paper, an attempt has been made to examine the evolution of corporate leverage of companies listed on the Johannesburg Stock Exchange (JSE) from 1994 to 2016. Analysis of the data set is organized around a sample of 126 listed companies across twelve sub-sector industries, namely, Banks, Fin...
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| Format: | Thesis |
| Language: | English |
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Department of Finance and Tax
2023
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| _version_ | 1867613177198411776 |
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| access_status_str | Open Access |
| author | Mokoko, Tseko |
| author2 | Holman, Glen |
| author_browse | Holman, Glen Mokoko, Tseko |
| author_facet | Holman, Glen Mokoko, Tseko |
| author_sort | Mokoko, Tseko |
| collection | Thesis |
| description | In this paper, an attempt has been made to examine the evolution of corporate leverage of companies listed on the Johannesburg Stock Exchange (JSE) from 1994 to 2016. Analysis of the data set is organized around a sample of 126 listed companies across twelve sub-sector industries, namely, Banks, Financial Services, Life Insurance, Fixed Line Telecommunications, Nonlife Insurance, Health Care Equipment and Services, Pharmaceuticals and Biotechnology, Media, Technology Hardware and Equipment, Software and Computer Services, Electronic and Electrical Equipment and Support Services. 621 delisted companies were also briefly analysed to eliminate survivorship bias. Results of multiple regressions using two primary leverage measures and six commonly used determinants of capital structure were varied. Tangibility and growth were negatively related to debt while cost of debt was positively related to debt. Firm size, profitability and corporate tax rate yielded a varied relationship with corporate leverage. Only the growth capital structure determinant showed statistical significance. The overall findings indicate a rise in corporate leverage that coincides in tandem with major local and international economic events. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/37564 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:31:58.458Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/37564 Evolution of Corporate Leverage on the JSE from 1994 to 2016 Mokoko, Tseko Holman, Glen Capital Structure Theory Capital Structure Determinants JSE Capital Markets Banks Financial Services Life Insurance Fixed Line Telecommunications Nonlife Insurance Health Care Equipment and Services Pharmaceuticals and Biotechnology Media Technology Hardware and Equipment Software and Computer Services Electronic and Electrical Equipment Support Services In this paper, an attempt has been made to examine the evolution of corporate leverage of companies listed on the Johannesburg Stock Exchange (JSE) from 1994 to 2016. Analysis of the data set is organized around a sample of 126 listed companies across twelve sub-sector industries, namely, Banks, Financial Services, Life Insurance, Fixed Line Telecommunications, Nonlife Insurance, Health Care Equipment and Services, Pharmaceuticals and Biotechnology, Media, Technology Hardware and Equipment, Software and Computer Services, Electronic and Electrical Equipment and Support Services. 621 delisted companies were also briefly analysed to eliminate survivorship bias. Results of multiple regressions using two primary leverage measures and six commonly used determinants of capital structure were varied. Tangibility and growth were negatively related to debt while cost of debt was positively related to debt. Firm size, profitability and corporate tax rate yielded a varied relationship with corporate leverage. Only the growth capital structure determinant showed statistical significance. The overall findings indicate a rise in corporate leverage that coincides in tandem with major local and international economic events. 2023-03-30T12:26:58Z 2023-03-30T12:26:58Z 2022 2023-03-30T10:15:24Z Master Thesis Masters MCom http://hdl.handle.net/11427/37564 eng application/pdf Department of Finance and Tax Faculty of Commerce |
| spellingShingle | Capital Structure Theory Capital Structure Determinants JSE Capital Markets Banks Financial Services Life Insurance Fixed Line Telecommunications Nonlife Insurance Health Care Equipment and Services Pharmaceuticals and Biotechnology Media Technology Hardware and Equipment Software and Computer Services Electronic and Electrical Equipment Support Services Mokoko, Tseko Evolution of Corporate Leverage on the JSE from 1994 to 2016 |
| thesis_degree_str | Master's |
| title | Evolution of Corporate Leverage on the JSE from 1994 to 2016 |
| title_full | Evolution of Corporate Leverage on the JSE from 1994 to 2016 |
| title_fullStr | Evolution of Corporate Leverage on the JSE from 1994 to 2016 |
| title_full_unstemmed | Evolution of Corporate Leverage on the JSE from 1994 to 2016 |
| title_short | Evolution of Corporate Leverage on the JSE from 1994 to 2016 |
| title_sort | evolution of corporate leverage on the jse from 1994 to 2016 |
| topic | Capital Structure Theory Capital Structure Determinants JSE Capital Markets Banks Financial Services Life Insurance Fixed Line Telecommunications Nonlife Insurance Health Care Equipment and Services Pharmaceuticals and Biotechnology Media Technology Hardware and Equipment Software and Computer Services Electronic and Electrical Equipment Support Services |
| url | http://hdl.handle.net/11427/37564 |
| work_keys_str_mv | AT mokokotseko evolutionofcorporateleverageonthejsefrom1994to2016 |