Capital structure and profitability in a tax-free country: evidence from the UAE
dc.contributor.author | Imen, Tebourbi | |
dc.contributor.author | Irene, Wei Kiong Ting | |
dc.contributor.author | Kweh, Qian Long | |
dc.contributor.author | Harith, Ali Hamood Al Huseini | |
dc.date.accessioned | 2020-07-27T11:10:57Z | |
dc.date.available | 2020-07-27T11:10:57Z | |
dc.date.copyright | © 2020 | |
dc.date.issued | 2020 | |
dc.description | This article is not available at CUD collection. The version of scholarly record of this article paper is published in Afro-Asian Journal of Finance and Accounting (2020), available online at: https://www.inderscienceonline.com/doi/abs/10.1504/AAJFA.2020.108257 | |
dc.description.abstract | The balance between debt and equity is a key factor explaining profitability. This study examines how capital structure affects the profitability of firms listed on stock exchanges in the United Arab Emirates (UAE), a country that does not have a federal corporate income tax regime. The proxies of capital structure used include total, short-term, and long-term debt ratios, while those of profitability are return on assets and return on equity. Over a 2001-2016 sample period, this study documents a significantly negative association between capital structure and profitability. This study finds that the negative association is mainly found in companies with a high level of debts. The results of this study not only imply that information asymmetry exists, they also highlight how capital structure and profitability are associated in the context of a corporate tax-free country. Copyright © 2020 Inderscience Enterprises Ltd. | en_US |
dc.identifier.citation | Tebourbi, I., Ting, I.W.K., Kweh, Q.L., & Al Huseini, H.A.H., (2020), Capital structure and profitability in a tax-free country: Evidence from the UAE, Afro-Asian Journal of Finance and Accounting. https://www.inderscienceonline.com/doi/abs/10.1504/AAJFA.2020.108257 | en_US |
dc.identifier.issn | 17516447 | |
dc.identifier.uri | http://hdl.handle.net/20.500.12519/229 | |
dc.identifier.uri | https://www.inderscienceonline.com/doi/abs/10.1504/AAJFA.2020.108257 | |
dc.language.iso | en | en_US |
dc.publisher | Inderscience Publishers | en_US |
dc.relation | Tebourbi, I., Faculty of Management, Canadian University Dubai, 1st Interchange, Sheikh Zayed Road, Dubai, 117781, United Arab Emirates; Ting, I.W.K., Faculty of Industrial Management, Universiti Malaysia Pahang, Gambang, Pahang, 26300, Malaysia; Kweh, Q.L., Faculty of Management, Canadian University Dubai, 1st Interchange, Sheikh Zayed Road, Dubai, 117781, United Arab Emirates; Al Huseini, H.A.H., Deloitte and Touche, Dubai, 60072, United Arab Emirates | |
dc.relation.ispartofseries | Afro-Asian Journal of Finance and Accounting;Volume 10, Issue 3. | |
dc.rights | Permission to reuse the abstract has been secured from Inderscience Enterprises Limited | |
dc.rights.holder | Copyright : © 2020 Inderscience Enterprises Ltd. | |
dc.subject | Capital Structure | en_US |
dc.subject | Debt | en_US |
dc.subject | Information asymmetry | en_US |
dc.subject | Profitability | en_US |
dc.subject | United Arab Emirates | en_US |
dc.title | Capital structure and profitability in a tax-free country: evidence from the UAE | en_US |
dc.type | Article | en_US |
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