Does the index matter? A comparison of the capital structures of firms listed on the AltX to those listed on the JSE

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dc.contributor.authorSebastian, Avani
dc.date.accessioned2018-04-20T11:29:24Z
dc.date.available2018-04-20T11:29:24Z
dc.date.issued2017
dc.descriptionThesis (M.Com. (Accounting))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Accountancy, 2017.en_ZA
dc.description.abstractThis study investigates whether there is a significant difference between the capital structures of firms listed on the JSE’s main board and those listed on the AltX. The factors influencing the differences are also explored in detail. Non-financial firms listed on the JSE and AltX respectively between 2011 and 2015 were chosen for the study. A panel data regression model was used and five measures of leverage were tested. The findings indicate that the exchange on which a firm is listed has an impact on its capital structure, with firms listed on the AltX having significantly higher levels of leverage than those listed on the JSE’s main board. In support of the pecking order theory, AltX firms are found to be more likely to draw on their internal funds as a first source of finance, even though they are generally less profitable than JSE firms and have less internal funds available. Moreover, AltX firms are found to be more reliant on more accessible short term financing than JSE firms, making them more susceptible to liquidity risks. This higher risk is congruent with the finding that the availability of tangible assets to offer as collateral appears to be a more significant determinant of leverage for AltX firms. The AltX was established to support growth of small and medium enterprises (SMEs) by enabling access to finance. Thus despite the establishment of the AltX, SMEs still face considerable constraints to accessing capital. Keywords: Capital structure, AltX, JSE, SME, information asymmetryen_ZA
dc.description.librarianGR2018en_ZA
dc.format.extentOnline resource (54 leaves)
dc.identifier.citationSebastian, Avani (2017) Does the index matter? A comparison of the capital structures of firms listed on the AltX to those listed on the JSE, University of the Witwatersrand, Johannesburg, <https://hdl.handle.net/10539/24385>
dc.identifier.urihttps://hdl.handle.net/10539/24385
dc.language.isoenen_ZA
dc.subject.lcshStocks--Prices--South Africa.
dc.subject.lcshCorporations--South Africa--Finance
dc.subject.lcshCapital--South Africa.
dc.subject.lcshJohannesburg Stock Exchange
dc.titleDoes the index matter? A comparison of the capital structures of firms listed on the AltX to those listed on the JSEen_ZA
dc.typeThesisen_ZA
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