The impact of capital structure on the Market Value Added (MVA) of commercial banks: Evidence from the GCC countries
هيكل رأس المال للمصارف التجارية
Keywords:
Capital structure, Market Value Added (MVA), Leverage ratio, Commercial banks.Abstract
This study aimed to determine the impact of capital structure on the market value added (MVA) of commercial banks for a sample of 48 commercial banks listed on the financial markets operating in the GCC countries, and on a balanced and annual panel dataset for the period (2011 - 2020). Capital structure was measured as the independent variable through the leverage ratio, calculated as "total debt to total assets." Control variables included deposit volume, bank size, profitability, liquidity, asset quality, and operational efficiency. The study examined the impact of these variables on MVA as the dependent variable. After considering the characteristics related to model construction and data, multiple linear regression analyses were performed using the Panels corrected standard errors (PCSE) estimation method. The results of the econometric study revealed a significant negative impact of the leverage ratio on the MVA of commercial banks. Therefore, the study concluded that capital structure does influence MVA. The added marketability (MVA) of commercial banks is largely driven by factors related to the control variables used in constructing the study model.
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Copyright (c) 2026 Journal of Economics and Political Sciences
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