CAPITAL STRUCTURE DETERMINANTS OF PUBLICLY LISTED COMPANIES IN SAUDI ARABIA

This paper investigates the capital structure of listed firms in Saudi Arabia, using firm specific data to study the determinants of leverage. The study is based on an analysis of the capital structure of 93 Saudi listed companies. The study extends from 2000 to 2010 and employs cross-sectional pool data methodology. The results suggest there exists a positive relationship between size, growth of the firm and leverage. On the other hand, the results show there are negative relationships between tangibility of assets, profitability, risk and leverage.