Capital structure and profitability in a tax-free country: evidence from the UAE

dc.contributor.authorImen, Tebourbi
dc.contributor.authorIrene, Wei Kiong Ting
dc.contributor.authorKweh, Qian Long
dc.contributor.authorHarith, Ali Hamood Al Huseini
dc.date.accessioned2020-07-27T11:10:57Z
dc.date.available2020-07-27T11:10:57Z
dc.date.copyright© 2020
dc.date.issued2020
dc.descriptionThis 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.abstractThe 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.citationTebourbi, 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.2020.108257en_US
dc.identifier.issn17516447
dc.identifier.urihttp://hdl.handle.net/20.500.12519/229
dc.identifier.urihttps://www.inderscienceonline.com/doi/abs/10.1504/AAJFA.2020.108257
dc.language.isoenen_US
dc.publisherInderscience Publishersen_US
dc.relationTebourbi, 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.ispartofseriesAfro-Asian Journal of Finance and Accounting;Volume 10, Issue 3.
dc.rightsPermission to reuse the abstract has been secured from Inderscience Enterprises Limited
dc.rights.holderCopyright : © 2020 Inderscience Enterprises Ltd.
dc.subjectCapital Structureen_US
dc.subjectDebten_US
dc.subjectInformation asymmetryen_US
dc.subjectProfitabilityen_US
dc.subjectUnited Arab Emiratesen_US
dc.titleCapital structure and profitability in a tax-free country: evidence from the UAEen_US
dc.typeArticleen_US

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