Abstract
The study examines the significant determinants of the insurance companies' capital structurelisted on the Saudi Stock Exchange (Tadawul) from 2010 to 2018. In this study, one dependentvariable capital structure is represented by leverage and six independent variables, firmcharacteristics variables (profitability, growth rate, risk, size, age) and macroeconomic variable(GDP). A random effect on a panel data regression model is employed as a tool of analysis. Thisstudy attempts to fill the lack of research in Saudi insurance companies to arrive at constructivesuggestions that could contribute to financial structure decisions. The results show thatprofitability, age and risk have a statistically significant negative effect on the capital structure.Growth rate and firm size significantly positively influence the capital structure, while grossdomestic product is insignificant.
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