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Journal of Finance and Accounting

2013; 1(3): 41-45 Published online October 20, 2013 (http://www sciencepublishin!!roup co"/#/#$%) doi: 10 11&4'/# #$% 20130103 11

The relationship between capital structure and firm performance: evidence from Jordan
Khalaf Al-Taani
(ep%rt"ent o$ )%n*in! + ,in%nce, ,%cult- o$ ,in%nce + .d"inistr%ti/e 0ciences, 1rbid 2%tion%l 3ni/ersit-, 1rbid 4 5ord%n

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*t%%ni6-%hoo co", (r *t%%ni6inu edu #o

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7h%l%$ .l-8%%ni 8he 9el%tionship between :%pit%l 0tructure %nd ,ir" Per$or"%nce: ;/idence $ro" 5ord%n Journal of Finance and Accounting. <ol 1, 2o 3, 2013, pp 41-45 doi: 10 11&4'/# #$% 20130103 11

Abstract: 8he purpose o$ this stud- is to e"piric%ll- in/esti!%te the rel%tionship between c%pit%l structure %nd $ir" per$or"%nce %cross di$$erent industries usin! % s%"ple o$ 5ord%ni%n "%nu$%cturin! $ir"s in 5ord%n 8he %nnu%l $in%nci%l st%te"ents o$ 45 "%nu$%cturin! co"p%nies listed on the .""%n 0toc* ;=ch%n!e were used $or this stud- which co/ers % period o$ $i/e (5) -e%rs $ro" 2005-200> ?ultiple re!ression %n%l-sis w%s %pplied on per$or"%nce indic%tors such %s 9eturn on .sset (9O.) %nd Pro$it ?%r!in (P?) %s well %s 0hort-ter" debt to 8ot%l %ssets (08(8.), @on! ter" debt to 8ot%l %ssets (@8(8.) %nd 8ot%l debt to ;Auit- (8(;) %s c%pit%l structure /%ri%bles 8he results show th%t there is % ne!%ti/e %nd insi!ni$ic%nt rel%tionship between 08(8. %nd @8(8., %nd 9O. %nd P?; while 8(; is positi/el- rel%ted with 9O. %nd ne!%ti/el- rel%ted with P? 08(8. is si!ni$ic%nt usin! 9O. while @8(8. is si!ni$ic%nt usin! P? 8he studconcludes th%t st%tistic%ll-, c%pit%l structure is not % "%#or deter"in%nt o$ $ir" per$or"%nce 1t reco""ends th%t "%n%!ers o$ "%nu$%cturin! co"p%nies should e=ercise c%ution while choosin! the %"ount o$ debt to use in their c%pit%l structure %s it %$$ects their per$or"%nce ne!%ti/elKeywords: :%pit%l 0tructure, ,ir" Per$or"%nce, .""%n 0toc* ;=ch%n!e, 5ord%n

1. Introduction
8he theor- o$ c%pit%l structure %nd its rel%tionship with % $ir"Bs per$or"%nce h%s been %n issue o$ !re%t concern in corpor%te $in%nce %nd %ccountin! liter%ture since the se"in%l wor* o$ ?odi!li%ni %nd ?iller (1>5') 8he- %r!ue th%t under /er- restricti/e %ssu"ptions o$ per$ect c%pit%l "%r*et, in/estorsB ho"o!enous e=pect%tions, t%=-$ree econo"- %nd no tr%ns%ction costs, c%pit%l structure is irrele/%nt in deter"inin! $ir" /%lue 8heir subseAuent pre$erence o$ purel- debt $in%ncin! due to t%= shield in 1>&3 w%s % contr%diction to tr%dition%l %ppro%ches which su!!ests %n opti"%l c%pit%l structure (?odi!li%ni %nd ?iller, 1>&3) 1n re%lit-, est%blishin! %n opti"%l c%pit%l structure is % di$$icult t%s* (0ho%ib, 2011) Ce contends th%t % $ir" "%reAuire issuin! % nu"ber o$ securities in % "i=ture o$ debt %nd eAuit- to "eet %n e=%ct co"bin%tion th%t c%n "%=i"iDe its /%lue %nd h%/in! succeeded in doin! so, the $ir" h%s %chie/ed its opti"%l c%pit%l structure 5ensen %nd ?ec*lin! (1>E&) de"onstr%tes the %"ount o$ le/er%!e in % $ir"Bs c%pit%l structure %$$ects the %!enccon$licts between "%n%!ers %nd sh%reholders %nd thus, c%n %lter "%n%!erBs beh%/iors %nd oper%tin! decisions 8his

position is %!reed b- C%rris %nd 9%/i/ (1>>1); Fr%h%" %nd C%r/e- (2001); ;b%id (200>) 0ince 5ensen %nd ?ec*lin!Bs %r!u"ent re!%rdin! c%pit%l structure in$luence on $ir" per$or"%nce, se/er%l rese%rchers h%/e $ollowed this e=tension %nd h%/e conducted studies %i"ed %t e=%"inin! the rel%tionship between c%pit%l structure %nd $ir" per$or"%nce Ghile the liter%ture e=%"inin! the per$or"%nce i"plic%tions o$ c%pit%l structure choices is i""ense in de/eloped econo"ies li*e 30. %nd ;urope, little is e"piric%ll- *nown %bout such i"plic%tions in e"er!in! econo"ies li*e 5ord%n .s ;ldo"i%t- (200E) %r!ues, c%pit%l "%r*et is less e$$icient %nd inco"plete %nd su$$ers $ro" hi!her le/el o$ in$or"%tion %s-""etr- th%n c%pit%l "%r*ets in de/eloped countries 8his rese%rch %tte"pts to $ill the !%p in this $ield b- in/esti!%tin! the e$$ect o$ c%pit%l structure on corpor%te per$or"%nce usin! di$$erent /%ri%bles %nd % ti"e $r%"e th%t is considered "ost recent when co"p%red with the rese%rches re/iewed in this wor* 8he ob#ecti/e o$ this stud- is to e=%"ine the i"p%ct c%pit%l structure h%s h%d on the per$or"%nce o$ $ir"s in 5ord%n 0peci$ic%ll-, it is %i"ed %t: ;=%"inin! the rel%tionship between c%pit%l structure, %nd 9eturn on .ssets

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7h%l%$ .l-8%%ni: 8he 9el%tionship between :%pit%l 0tructure %nd ,ir" Per$or"%nce: ;/idence $ro" 5ord%n

(9O.) %nd Pro$it ?%r!in (P?) (%t% o$ 45 $ir"s listed on .""%n 0toc* ;=ch%n!e (.0;) between 2005 %nd 200>, representin! 225 4 $ir" -e%r obser/%tions would be used $or the stud- 8his stud- will be si!ni$ic%nt to "%n%!ers in decidin! the ri!ht co"bin%tion o$ eAuit- %nd debt to $in%nce their oper%tions %nd to "%=i"iDe $ir" /%lue %t the s%"e ti"e contributin! to the econo"ic de/elop"ent o$ 5ord%n 8he rest o$ this p%per is %s $ollows: the ne=t section presents rel%ted liter%ture %nd $ollowed b- "ethodolo!8he third section discuses rese%rch results :onclusion %nd reco""end%tions $or $uture rese%rches discussed in the $in%l section

2. Literature Re iew
8he liter%ture on the rel%tionship between $ir" per$or"%nce %nd c%pit%l structure h%s produced "i=ed results 0o"e h%/e been $ound % positi/e rel%tion between $in%ncin! choices %nd per$or"%nce (pro$it%bilit-) 9oden %nd @ewellen (1>>5) e=%"ines the c%pit%l structure o$ 4' 30 $ir"s durin! the period 1>'1-1>>0 %nd re/e%led % positi/e rel%tion between pro$it%bilit- %nd c%pit%l structure 0i"il%r results were docu"ented b- :h%"pion (1>>>) %nd Fosh et %l (2000) C%dloc* %nd 5%"es (2002) su!!est corpor%tions with hi!h le/el o$ pro$it%bilit- use hi!h le/el o$ debts 1n the other words, the- show % positi/e rel%tion between per$or"%nce %nd c%pit%l structure .bor (2005) reports % positi/e rel%tion between c%pit%l structure, which "e%sured b- 08( %nd 8(, %nd per$or"%nce o/er the period 1>>'-2002 in Fh%n%i%n $ir"s )er!er %nd )on%ccrsi di p%tti (200&) pro/ide the s%"e results ,in%ll-, .r%bi-%n %nd 0%$%ri (200>) in/esti!%tes the e$$ects o$ c%pit%l structure on pro$it%bilit- usin! 100 1r%ni%n listed $ir"s $ro" 2001 to 200E 8he- $ound short-ter" %nd tot%l debts %re positi/e rel%ted to pro$it%bilit- (9O;) while indic%te % ne!%ti/e rel%tion between lon!-ter" debts %nd 9O; )- contr%st, se/er%l schol%rs re/e%led % ne!%ti/e rel%tion between c%pit%l structure %nd per$or"%nce 1n this line, 7ester (1>'&) $ound % ne!%ti/e rel%tion between c%pit%l structure %nd per$or"%nce (pro$it%bilit-) in the 30 %nd 5%p%n 0i"il%r results were reported b- ,riend %nd @%n! (1>''), 9%#%n %nd Hin!%les (1>>5) in the F-E countries 1n %ddition, Cu%n! %nd 0on! (200&) $ound % ne!%ti/e correl%tion between le/er%!e %nd per$or"%nce (e%rnin!s be$ore interest %nd t%= to tot%l %ssets) in :hin% $ir"s 0e/er%l studies show either poor or no st%tistic%l rel%tion between c%pit%l structure %nd per$or"%nce (8%n! %nd 5%n!e, 200E; ;b%id, 200>) ;b%id (200>) in/esti!%tes the i"p%ct o$ c%pit%l structure choice on per$or"%nce o$ &4 $ir"s $ro" 1>>E to 2005 in the ;!-pti%n c%pit%l "%r*et Ce e"plo-s three %ccountin! 4b%sed "e%sures; includin! 9O., 9O; %nd !ross pro$it "%r!in, %nd concludes c%pit%l structure choices, !ener%ll-, h%s % wee*-to-no i"p%ct on $ir" per$or"%nce :%pit%l structure liter%ture h%s shown con$lictin! results %"on! rese%rchers 0o"e studies h%/e shown th%t c%pit%l

structure h%s si!ni$ic%nce i"p%ct on $ir" per$or"%nce while others h%/e shown no i"p%ct Fener%ll-, rese%rchers %!ree th%t %n %ssoci%tion between c%pit%l structure %nd $ir" per$or"%nce e=ist (Cun!, et %l 2002) Ghile so"e studies h%/e concluded th%t the rel%tionship between c%pit%l structure %nd $ir" per$or"%nce is both positi/e %nd ne!%ti/e (8s%n!%%o, et %l 200>; 0%eed %nd ?%h"oodi, 2011; .bor, 2005; O*e %nd .$ol%bi, 200') others concluded th%t the rel%tionship is ne!%ti/e (2%render, et %l 200E; Pr%theep*%nth, 2011; 0h%h, et %l 2011; On%ol%po %nd 7%#ol% 2010; 0ho%ib, 200E) Iet, other studies h%/e docu"ented % positi/e rel%tionship (0ho%ib %nd 0iddiAui, 2011; ."%n, 2011; :howdhur-, 2010; O"oro!ie %nd ;r%h, 2010) Gith these "i=ed %nd con$lictin! results, the Auestion $or e=%"inin! the rel%tionship between c%pit%l structure %nd $ir" per$or"%nce h%s re"%ined % puDDle %nd e"piric%l stud- continues

!. "b#ecti es
8he $ocus o$ this stud- is 1"p%ct o$ :%pit%l structure on Per$or"%nce o$ the )usiness industr- in listed co"p%nies in 5ord%n 8o re/e%l the i"p%ct o$ c%pit%l structure on $in%nci%l per$or"%nce 8o e/%lu%te the interrel%tionship between c%pit%l structure %nd per$or"%nce

$. %y&otheses
8he $ollowin! h-pothesis is $or"ul%ted $or the studC0; - 8here is % ne!%ti/e rel%tionship between c%pit%l structure %nd $in%nci%l per$or"%nce C1:- 8he c%pit%l structure h%s si!ni$ic%nt i"p%ct on $in%nci%l per$or"%nce C2: - 8here is % positi/e rel%tionship between c%pit%l structure %nd $in%nci%l per$or"%nce

'. (ata and )ethodolo*y


8o produce the %bo/e "entioned rese%rch ob#ecti/e, the d%t% $or this stud- w%s !%thered $ro" the $in%nci%l st%te"ents %s published b- )usiness :o"p%nies 1n %ddition, %nother source o$ d%t% w%s throu!h re$erence to the re/iew o$ di$$erent %rticles, p%pers, %nd rele/%nt pre/ious studies ,or this purpose, collectin! d%t% o$ )usiness $ir"s is used which %re listed on .""%n 0toc* ;=ch%n!e .ll $ir"s %re t%*en $or the stud- representin! the period o$ 2005- 200>, %nd the %/er%!e /%lues o$ e%ch ite" w%s considered $or the purpose o$ r%tio co"put%tion %nd %n%l-sis 8he popul%tion o$ the stud- is "%de up o$ the 45 "%nu$%cturin! co"p%nies listed on .0; 8he d%t% obt%ined $ro" these co"p%nies were t%bul%ted %nd %n%l-Ded usin! "ultiple re!ression "odels 8his st%tistic%l techniAue is used bec%use the stud- see*s to est%blish i$ there is % rel%tionship between c%pit%l structure

5ourn%l o$ ,in%nce %nd .ccountin! 2013; 1(3): 41-45

43

%nd $ir" per$or"%nce 5.1. Definition of Variables 0hort ter" debt to tot%l %ssets (08(8.): 8his is %n independent /%ri%ble 1t is deri/ed b- di/idin! short ter" debt b- tot%l %ssets @on! ter" debt to tot%l %ssets (@8(8.): 8his is %lso %n independent /%ri%ble 1t is deri/ed b- di/idin! lon! ter" debt b- tot%l %ssets 8ot%l debt to eAuit- (8(;): 8his is %nother independent /%ri%ble 1t is c%lcul%ted b- di/idin! tot%l debt b- eAuit9eturn on %ssets (9O.): 8his is % dependent /%ri%ble 1t is the Auotient o$ di/idin! pro$it %$ter t%= b- tot%l %ssets Pro$it "%r!in (P?): 8his is %lso % dependent /%ri%ble 1t is the Auotient o$ di/idin! pro$it %$ter t%= b- turno/er

5.2. Model Specification 8he rese%rcher %dopts the "odel used b- 0ho%ib (200E) %nd On%ol%po %nd 7%#ol% (2010) with little "odi$ic%tion to suit the rese%rcherBs need 8he "odel is %s $ollows: :0 J $ (08(8., @8(8., 8(;) P;9, J$ (:0), b- e=p%nsion, P;9, J $ (08(8., @8(8., 8(;) 3sin! "ultiple re!ression %n%l-sis, the "odel c%n be built %s $ollows: P;9, J b0 K b1 08(8. K b2 @8(8. K b3 8(; K e Ghere, P;9,Jper$or"%nce (pro=- b- 9O., P?) 9O. J9eturn on .sset P? J Pro$it ?%r!in; :0 J :%pit%l 0tructure; 08(8. J 0hort ter" debt to tot%l %ssets; @8(8. J @on! ter" debt to tot%l %ssets; 8(; J 8ot%l debts to eAuit-; )0 Jthe const%nt, %nd )1, b2, b3, %re re!ression coe$$icients

+. Results and (iscussions


Table 1. Regression Result ,ariable :onst%nt 08(8. @8(8. 8(; -oefficient E 43' -0 123 -0 150 0 004 T-.tat 4 33> -2 400L -2 133L 0 E5E .i* 0 000 0 1E 0 034 0 450 ,I/ 1 0E0 1 4&E 1 4&& R-s0uare 0 03> .i* f- chan*e 0 032

(ependent /%ri%ble: 9O.: 0O39:;; 0P00 0t%tistics

8he t%ble %bo/e shows the re!ression result used to /eri$- the %ssoci%tion between 08(8., @8(8., 8(; %nd 9O. 8he result indic%tes % ne!%ti/e rel%tionship between 08(8., @8(8. %nd 9O. while % positi/e rel%tionship e=ists between 8(; %nd 9O. 8his "e%ns %n incre%se in 08(8. %nd @8(8. b- one will reduce 9O. b- 12 3M %nd 15M respecti/el- while % unit ch%n!e in 8(; will incre%se 9O. b- 0 4M 92 is 4M which indic%tes hi!hlinsi!ni$ic%nt rel%tionship between the /%ri%bles, %s >&M o$ the /%ri%tion is %ttribut%ble to $%ctors outside this stud<1, is less th%n 5 which "e%ns the independent /%ri%bles

%re not too inter-correl%ted 8he t-st%t is within -2 20 %nd K 2 20 e=cept th%t o$ 8(; which is outside the r%n!e o$ the critic%l /%lue o$ t %t 5M le/el o$ si!ni$ic%nce :onseAuentl-, the null h-pothesis is %ccepted usin! lon! ter" debt to tot%l %ssets %nd short ter" debt to tot%l %ssets le%din! to the conclusion th%t c%pit%l structure does not si!ni$ic%ntl%$$ect $ir" per$or"%nce (9O.) Cowe/er, usin! tot%l debt to eAuit-, the null h-pothesis is re#ected Cence, there is % si!ni$ic%nce rel%tionship between c%pit%l structure (8(;) %nd per$or"%nce (9O.)

Table 2. Regression Result ,ariable :onst%nt 08(8. @8(8. 8(; -oefficient 2 30' -0 02' -0 3>2 -0 003 T-.tat 0 3>& -0 1&0 -1 &41 -0 140 0 'E3 0 102 0 ''> 1 0E0 1 4&' 1 4&& .i* ,I/ R-s0uare 0 01> .i* f- chan*e 0 235

(ependent /%ri%ble: P?: 0O39:;: 0P00 0t%tistics

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7h%l%$ .l-8%%ni: 8he 9el%tionship between :%pit%l 0tructure %nd ,ir" Per$or"%nce: ;/idence $ro" 5ord%n

8he t%ble %bo/e represents the result o$ re!ression used to /eri$- the rel%tionship between 08(8., @8(8., 8(; %nd P? 8he result indic%tes % ne!%ti/e rel%tionship between 08(8., @8(8, 8(; %nd P? 8his "e%ns %n incre%se in 08(8., @8(8., %nd 8(; b- one will reduce P? b- 2 'M, 3 >2M %nd 0 3M respecti/el- 9-sAu%re is20M which "e%ns '0M o$ the /%ri%tion is %ttribut%ble to $%ctors outside this stud- <1, is less th%n 5 %nd this "e%ns the independent /%ri%bles %re not too inter-correl%ted 8he null h-pothesis which st%tes th%t c%pit%l structure does not si!ni$ic%ntl- %$$ect $ir" per$or"%nce /%ri%ble, pro$it "%r!in is %ccepted $or 08(8., @8(8. %nd 8(; 8he $indin!s o$ this wor* %re consistent with 0ho%ib, 200E; On%ol%po %nd 7%#ol%, 2010; 0h%h, %l 2011; Pr%theep*%nth, 2011; %nd 2%rend%r, 2011

re/iewed %nd open %ccess #ourn%l, <ol 3 (3), pp 111-115 N&O NEO :h%"pion, ( , 2010 ,in%nce: the #o- o$ le/er%!e, C%r/%rd )usiness 9e/iew, <ol EE, pp 1>-22 ;b%id, 1 ; (200>) 8he i"p%ct o$ c%pit%l structure choice on $ir" per$or"%nce: e"piric%l e/idence $ro" ;!-pt, 5ourn%l o$ ris* ,in%nce, <ol E, pp 4EE-4'E ;ldo"i%t-, 8 (200E) (eter"in%nts o$ corpor%te c%pit%l structure: e/idence $ro" %n e"er!in! econo"-, 1ntern%tion%l #ourn%l o$ co""erce %nd "%n%!e"ent, <ol 1E, pp 25-43 ,riend, 1 %nd @%n!, @ , (1>'') .n e"piric%l test o$ the i"p%ct o$ "%n%!eri%l sel$-interest on corpor%te structure, 5ourn%l o$ ,in%nce, <ol 43, pp 2E1-'1

N'O

N>O

1. -onclusion
8his stud- e=%"ines the i"p%ct o$ c%pit%l structure on $ir" per$or"%nce )%se on the selected s%"ple siDe %nd usin! c%pit%l structure indic%tors li*e 08(8., @8(8. %nd 8(; %s well %s 9O. %nd P? %s per$or"%nce indic%tors, !ener%ll-, there is % ne!%ti/e %nd insi!ni$ic%nt rel%tionship between c%pit%l structure %nd $ir" per$or"%nce 8he studconcludes th%t st%tistic%ll-, c%pit%l structure represented bshort-ter" debt to tot%l %ssets (08(8.), lon!- ter" debts to tot%l %ssets (@8(8.) %nd tot%l debt to eAuit- (8(;) is not % "%#or deter"in%tion o$ $ir" per$or"%nce .lthou!h, the stud- h%s $ound no st%tistic%ll- si!ni$ic%nt rel%tionship between c%pit%l structure %nd $ir" per$or"%nce, the stud- reco""ends th%t "%n%!ers should be c%re$ul while usin! debt %s % source o$ $in%nce since % ne!%ti/e rel%tionship e=ist between the c%pit%l structure %nd per$or"%nce /%ri%bles used in this wor* 8he- should tr- to $in%nce their %cti/ities with ret%ined e%rnin!s %nd use debt %s % l%st option %s supported b- the pec*in! order theor-

N10O Fr%h%", 5 %nd C%r/e-, : (2001) 8he theor- %nd pr%ctice o$ corpor%te $in%nce: e/idence $ro" the $ield, 5ourn%l o$ ,in%nci%l ;cono"ics, <ol 50, pp1'E-243 N11O Fhosh, : , 2%!, 9 %nd 0ir"%ns, : , (2000) 8he pricin! o$ se%soned eAuit- o$$erin!s: e/idence $ro" 9;18s, 9e%l ;st%te ;cono"ics, /ol 2', pp 3&3-'4 N12O C%dloc*, : %nd 5%"es, : , (2002) (o b%n*s pro/ide $in%nci%l sl%c*P , 5ourn%l o$ ,in%nce, <ol 5E, pp 13'3-420 N13O Cu%n!, 0 %nd 0on!, , , (200&) 8he deter"in%nts o$ c%pit%l structure: e/idence $ro" :hin%, :hin% ;cono"ic 9e/iew, <ol 1E 2o 1, pp 14-3& N14O C%rris, ? %nd 9%/i/, . (1>>1) :%pit%l structure %nd in$or"%tion role o$ debt, 5ourn%l o$ ,in%nce, <ol 4&, pp2E>355 N15O Cun!, : I , .lbert, : P : %nd ;ddie, C : ? (2002) :%pit%l structure %nd pro$it%bilit- o$ the propert- %nd construction sectors in Con! 7on!, 5ourn%l o$ Propert1n/est"ent %nd ,in%nce, <ol 20(&), pp434-453 N1&O 5ensen, ? %nd ?ec*lin!, G (1>E&) 8he theor- o$ the $ir": "%n%!e"ent beh%/ior, %!enc- costs %nd c%pit%l structure, 5ourn%l o$ ,in%nci%l ;cono"ics, <ol 3(1), pp 305-3&0 N1EO 7ester, G , (1>'&) :%pit%l %nd ownership structure: % co"p%rison o$ 3nited 0t%tes %nd 5%p%nese "%nu$%cturin! corpor%tions, ,in%nci%l ?%n%!e"ent, <ol 15, pp 5-1& N1'O ?odi!li%ni, , %nd ?iller, ? (1>5') 8he cost o$ c%pit%l, corpor%tion $in%nce %nd theor- o$ in/est"ent, ."eric%n ;cono"ic 9e/iew, <ol 4', pp 2&1-2>E N1>O ?odi!li%ni, , %nd ?iller, ? (1>&3) :orpor%te inco"e t%=es %nd the cost o$ c%pit%l: % correction, ."eric%n ;cono"ic 9e/iew, <ol 53, pp 443-453 N20O 2%rend%r, < 9 , 7h%"is, C ? %nd @%tee$, . 0 (200E) :%pit%l structure %nd $in%nci%l per$or"%nce: e/idence $ro" O"%n, 1ndi%n 5ourn%l o$ ;cono"ics %nd )usiness <ol 2, pp 5E-&5 N21O O*e, O O %nd .ol%bi, ) (200') :%pit%l structure %nd industri%l per$or"%nce in 2i!eri%, 5ourn%l o$ 0oci%l 0cience, <ol 4(1), pp 13-21 N22O O"oro!ie, . 2 %nd ;r%h, ( O (2010) :%pit%l structure %nd corpor%te per$or"%nce in 2i!eri%: %n e"piric%l in/esti!%tion, ..3 5ourn%l o$ ?%n%!e"ent 0ciences, <ol 1 (1), pp 43-52

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