Determinants of capital structure in developing countries - Research Proposal Example

TABLE I. Country Factors The total debt ratio is defined as total liabilities divided by total liabilities plusnet worth. The long-term book debt ratio is defined as total liabilities minus current liabilities divided by total liabilities minus current liabilities plus net worth. The long-term market debt ratio is defined as total liabilities divided by total liabilities plus equity market value. The asset tangibility is measured by total assets less current assets divided by total assets; return on assets is defined as earnings before tax divided by total assets; business risk is measured as the standard deviation of the return on assets; market-to-book ratio is the market value of equity divided by the book value of equity.

NigeriaSouth AfricaEgyptAlgeriaMoroccoTotal liabilities9.132BNet worth338.1BCurrent liabilities52.6MEquity market value5.99BTotal assets52.6MCurrent assets580MStandard Deviation of the return on assets0.28711Market value of equity$86.35BBook value of equity$143.9B