Determinants of Capital Structure: (Evidence from Jordanian Data)

Unlike previous empirical work on capital structure, which is mainly confined to the United States and a fewother developed countries, this paper attempts to study the issue of capital structure choice in developingcountries through studying the case of the Jordanian industrial sector. This paper shows that the capital structurechoice is influenced by factors such as: profitability, tax, firm’s size, growth rate, market-to-book ratio, assetsstructure, liquidity, and dividends. In addition, the paper reveals that Jordanian industrial firms have a targetcapital structure and that they adjust to their target leverage ratios