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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