This study examines the impact of capital structure on firm value within the food manufacturing sector of South Africa, addressing a critical gap in the literature on emerging markets. Using a balanced panel dataset of eight listed firms from 2007 to 2018, the research utilizes panel regression models—Common Effect (CEM), Fixed Effect (FEM), and Random Effect (REM)—with the Hausman test indicating REM as the optimal choice. Key findings demonstrate that profitability (RA), debt-to-equity ratio (DE), and firm size (FS) significantly enhance stock prices at a 1% significance level. In contrast, liquidity (CR) negatively affects stock prices (10% significance), while asset growth (AG) shows no significant impact. These results challenge traditional capital structure theories, emphasizing that South African firms strategically use debt for tax advantages despite market volatility, a stark contrast to developed economies where liquidity is typically prioritized. The study highlights the contextual significance of macroeconomic factors, such as energy shortages and regulatory policies (e.g., Black Economic Empowerment), in influencing financing decisions. By bridging the gap between classical theories and emerging market dynamics, this research provides actionable insights for policymakers to encourage sustainable capital structures, for investors to reconsider the role of liquidity in volatile environments, and for the government to develop better policies to support businesses. This research is novel; it is among the first to investigate the link between firm value and capital structure specifically for food manufacturing companies in South Africa over 12 years. It is distinctive because it frames capital structure choices within the unique industrial and economic environment of South Africa, contributing a framework for optimizing firm value in similar emerging markets.

This study examines whether capital structure determinations by Indonesian publicly listed firms (Tbks) are influenced by the behavioural biases of overconfidence and optimism, with the underlying rationality frameworks being framed by relevant financial information and impacted by decision-makers’ demographic attributes. Data were obtained from survey respondents and statistically analysed using partial least squares structural equation modelling to identify the indicators of causative dynamics within the hypothesised relationships. Sampled Tbks’ management (CEOs/CFOs) displayed the inherent behavioural traits of overconfidence and optimism in their capital structure determinations. However, such behavioural variables were not statistically proven to significantly influence capital structure decision-making and, hence, were not validated as capital structure determinants. The pecking order framework was revealed to have a significant framing effect on capital structure decision-making by sampled managers. Sampled managers’ demographic attributes and backgrounds were found to be capital structure determinants but did not have a mediating or moderating influence on the modelled relationship between behavioural variables and capital structure.

For measuring the efficiency of management of cash, cash holding is one of the most important financial decisions that the manager of the concerned organization, has to make in the organization. Basically, it is observed that the organization hold cash for future purposes is very negligible. If the organization invested cash in profitable securities then there is some flexibility but when it relates to the capital market holding cash is not advantageous. Generally two contradictory theories such as Trade-off theory and the Pecking order theory are considered for measuring the efficiency of cash management. In this study we generally observed measured the efficiency of Cash Management influenced by Cash Holding. We also measured whether cash holding of the organization is affected with the degree of financial leverage, size of the organization, investment and profitability. This study helps us to understand the influence of DFL, Investment and Size of the organization on Cash holding. Proper holding of cash in cash management can prevent the bankruptcy of any organization and also increases the efficiency of Cash or Liquidity management.

This study investigates the explanatory power of leverage and cash flows in future cash flow prediction in Tehran Stock Exchange by considering Signaling Theory and Pecking Order Theory. Based on theoretical foundations, the regression models of leverage and cash flow with a set of control variables was developed. Statistical samples consist of companies listed in Tehran Stock Exchange over the period 2005- 2011. The results show that there was a negative relationship between cash flow and leverage levels in contemporary time. This is consistent with pecking order behavior. While at intertemporer level, there was a positive relationship between current leverage and the firm & apos; s cash flows in the future. This is consistent with signaling theory.