Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Open access

The topic of capital structure has long been studied by researchers and constitutes one of the most active areas in the field of finance. Studies typically contain empirical evidence and theoretical explanation on how capital structure decisions have been driven by different determinants. However, to date, limited efforts have been devoted to the oil and gas industry even though this industry has a significant impact on economics for most of the countries in the world. Thus, it is important to draw attention to the factors that have an influence on capital structure decisions in the context of the oil and gas industry. Therefore, this study is to reviews empirical evidence that have employed firm-specific factors that generally had been accepted by researchers to be the determinants of capital structure as a way to assess such factors in understanding what motivates oil and gas firms to select a particular source of fund and to provide a significant indication which a firm has to consider before deciding on its capital structure decisions. This information is useful for researchers’ studies on oil and gas industry capital structure to underline the research direction.

1. Sheikh, A. N., & Wang, Z. (2011). Determinants of Capital Structure: An empirical Study of Firms in Manufacturing Industry of Pakistan. Managerial Finance, 37(2), 117-133. doi:doi:10.1108/ 03074351111103668
2. Allini, A., Rakha, S., McMillan, D. G., & Caldarelli, A. (2018). Pecking Order and Market Timing Theory in Emerging Markets: The Case of Egyptian Firms. Research in International Business and Finance, 44, 297-308.
3. Baker, M., & Wurgler, J. (2002). Market Timing and Capital Structure. The Journal of Finance, 57(1), 1-32.
4. Booth, L., Aivazian, V., Demirguc?Kunt, A., & Maksimovic, V. (2001). Capital Structures in Developing Countries. The Journal of Finance, 56(1), 87-130.
5. Chadha, S., & Sharma, A. K. (2015). Determinants of Capital Structure: An Empirical Evaluation From India. Journal of Advances in Management Research, 12(1), 3-14. doi:doi:10.1108/JAMR-08-2014-0051
6. Chakrabarti, A., & Chakrabarti, A. (2019). The Capital Structure Puzzle – Evidence from Indian Energy Sector. International Journal of Energy Sector Management, 13(1), 2-23. doi:doi:10.1108/IJESM-03-2018-0001
7. Ebneyamini, S., & Bandarian, R. (2018). Explaining the Role of Technology in the Dynamics of the Players Business Models in the Global Oil Playground. International Journal of Energy Sector Management, 0(0), null. doi:doi:10.1108/IJESM-09-2018-0004
8. Huong, P. T. Q. (2018). Macroeconomic Factors and Corporate Capital Structure: Evidence from Listed Joint Stock Companies in Vietnam. International Journal of Financial Research, 9(1), 31-40.
9. Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.
10. Maji, I. K., Saari, M. Y., Habibullah, M. S., & Utit, C. (2017). Measuring the Economic Impacts of Recent Oil Price Shocks on Oil-dependent Economy: Evidence from Malaysia. Policy Studies, 38(4), 375-391.
11. Mitchell, J. V., & Mitchell, B. (2014). Structural Crisis in the Oil and Gas Industry. Energy Policy, 64, 36-42.
12. Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment. The American Economic Review, 48(3), 261-297.
13. Modigliani, F., & Miller, M. H. (1963). Corporate Income Taxes and the Cost of Capital: A Correction. The American Economic Review, 53(3), 433-443.
14. Myers, S. C. (1984). The Capital Structure Puzzle. The Journal of Finance, 39(3), 574-592.
15. Myers, S. C., & Majluf, N. S. (1984). Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have. Journal of Financial Economics, 13(2), 187-221.
16. Sakr, A., & Bedeir, A. (2019). Firm Level Determinants of Capital Structure: Evidence From Egypt. International Journal of Financial Research, 10(1), 68-85.
17. Sofat, R., & Singh, S. (2017). Determinants of Capital sStructure: An Empirical Study of Manufacturing Firms in India. International Journal of Law and Management, 59(6), 1029-1045. doi:doi:10.1108/IJLMA-05-2016-0051
18. Lemma, T., & Negash, M. (2013). Institutional, Macroeconomic and Firm-Specific Determinants of Capital Structure: The African Evidence. Management Research Review, 36(11), 1081-1122. doi:doi:10.1108/MRR-09-2012-0201
19. Ullah, S., Siddiqui, A. F., & Tashfeen, R. (2017). Corporate Leverage: Structural Equations Framework in an Emerging Economy. Managerial Finance, 43(11), 1224-1235. doi:doi:10.1108/MF-06-2017-0203
20. Zafar, Q., Wongsurawat, W., & Camino, D. (2019). The Determinants of Leverage Decisions: Evidence from Asian Emerging Markets. Cogent Economics & Finance, 7(1), 1598836. doi:10.1080/23322039.2019.1598836

To cite this article: Hamzah, H.H., Marimuthu, M. (2019). An Overview: Oil and Gas Capital Structure, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (4): 330-334