Submitted:
17 January 2021
Posted:
18 January 2021
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Abstract
The aim of this study was to identify MFIs specific determinants of capital structure of selected micro finance institutions in Ethiopia. The researcher employed quantitative research approach with explanatory research design. The result of regression analysis showed that out that variables like growth, profitability, firm size, age, and asset tangibility have positive and statistically significant effect on leverage ratio. Whereas, profitability has statistically significant and negative effect on capital structure. Based on the findings of the study, the researcher concluded that the firm specific determinants of capital structure of micro finance institutions in Ethiopia were growth, profitability, firm size, age, and asset tangibility.
Keywords:
Capital structure
; Determinants
; Microfinance Institutions
; Random effect Model
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