الفهرس Only 14 pages are availabe for public view
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Abstract
Purpose {u2013} The purpose of this research is to study the firms{u2019} motives for adopting zero-leverage policy by concentrating on the relationship between firms’ characteristics, chosen on the bases of known theories of capital structure as well as macroeconomic conditions, and their desire to preserve zero leverage. In addition to examining the basic reasons behind conservative debt policy for constrained as well as unconstrained firms. Design/Methodology/Approach{u2013} this research uses data of non-financial firms listed MENA region throughout 2008- 2018 from Decypha as well as 2World Bank3 and PRS group Databases. It uses a t-test along with logistic regression to draw interpretations.The selected sample covers 713 companies operating in the MENA region in the period from 2008-2018. Short term, as well as long term debt, has been deployed to determine Zero leverage firm and leverage ratio to determine the AZL, Size quintiles have been used to differentiate between constrained and unconstrained firms.Findings {u2013} ZL firms are constrained and utilize the pecking order theory of capital structure, depend on their affiliated companies to get their financial needs and issue more equity instead of resorting to debt.Limitations/ Implications{u2013}The limited number of zero leverage firms compared to the Almost Zero Leverage firms should be an important factor to be considered in future capital structure researches.Practical Implications {u2013} giving a guide to Co.’s executives on the motives behind foregoing the benefits of debt in their financial statements.Originality/ Value {u2013}filling a gap in the Zero leverage phenomenon literature by providing new evidence for reasons behind adopting zero leverage policy in the MENA region emerging markets