Determinants of the capital structure of small and medium enterprises: Empirical evidence in the public works and hydraulics sector from Algeria

This study aims to identify the determinants of the capital structure of SMEs in Algeria during the period 2010-2018. Where a sample consists of 20 SMEs from the Public Works and Hydraulics sector. The study used financial leverage as the dependent variable and assets structure, profitability, liqui...

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Bibliographic Details
Main Authors: Ishaq Hacini, Khadra Mohammedi, Khadra Dahou
Format: Article
Language:English
Published: Asociación Española de Contabilidad y Administración de Empresas (AECA), Universidad Politécnica de Cartagena (UPCT) 2022-02-01
Series:Small Business International Review
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Online Access:https://sbir.upct.es/index.php/sbir/article/view/408
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Summary:This study aims to identify the determinants of the capital structure of SMEs in Algeria during the period 2010-2018. Where a sample consists of 20 SMEs from the Public Works and Hydraulics sector. The study used financial leverage as the dependent variable and assets structure, profitability, liquidity, and size as independent variables. The study used Panel Data methods for testing the hypothesis. The results show that profitability, liquidity, and assets structure are negatively related to financial leverage, while size does not affect the financial leverage. The results indicate that SMEs in Algeria rely on their internal resources to finance their activities.
ISSN:2531-0046