Institutions and corporate capital structure in the MENA region

Mohamed Belkhir, Aktham Maghyereh, Basel Awartani

    Research output: Contribution to journalArticlepeer-review

    78 Citations (Scopus)


    This paper provides novel evidence on firm- and country-level determinants of firm capital structure decisions in the MENA region. Using a sample of 444 listed firms from ten countries, over the 2003-2011 period, we find that MENA firms have target leverage ratios towards which they adjust over time. Yet, the speed of adjustment varies from one country to another. Our findings also suggest that some firm-level factors are associated with leverage consistent with the trade-off and pecking order theories of capital structure. We further find robust evidence that better institutional quality leads firms to use more debt.

    Original languageEnglish
    Pages (from-to)99-129
    Number of pages31
    JournalEmerging Markets Review
    Publication statusPublished - Mar 1 2016


    • Capital structure
    • Financial development
    • Institutions
    • Leverage
    • MENA

    ASJC Scopus subject areas

    • Business and International Management
    • Economics and Econometrics


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