The Determinants of Capital Structure: An empirical study of firms in Food and Beverage Sector of Saudi Arabia

Abstract

This study concentrates the influence of financial leverage, profitability and tangibility asset on capital structure in Saudi food and beverage firms. This study is based on designated 6 listed Saudi Arabian food and beverage firms during the period from 2002 to 2017. The study uses regression model and correlation to estimate the impact of financial leverage, profitability and tangibility asset on capital structure. According to result there is a significant positive relationship between capital structure and profitability, a significant positive relationship between capital structure and financial leverage and a negative significant relationship between tangibility asset and capital structure.