The average long-term debt to total assets (LTDTA) is 12.38%, minimum is 0.00%, maximum is 54.64% and standard deviation is 15.12%.
If we compare the same ratio with that of G7 countries data shown in Table II referred by Zingales and Rajan (1995), LTDTA ratio of other companies LTDTA was relatively low 12.38% versus Canada (37.2%), France (25%), Germany (42%), Italy (24%), Japan (25%), United Kingdom (18%) and United States (33%).
The results showed that there was a positive relationship between growth and TDTA, growth and LTDTA, while TDTE and STDTA has a negative relationship with growth.
Moreover, for the other variables like DI and BETA, wherein DI has positive relationship with TDTA, LTDTA, STDTA while TDTE, growth and size are in negative relation with DI.
The results showed that there was a positive relationship between BETA and TDTE, BETA and LTDTA, growth and BETA, size and BETA, while TDTA, STDTA and DI has a negative relation with BETA.
From the regression results in Table I, corporate size was found to have a positive and significant effect on the leverage measures LTDTA and STDTA, but was not significantly related to TDTA and TDTE leverage measures.
In hypothesis 2 ([H.sub.2]), the relationship of systematic risk beta is seen with corporate capital structure measured by TDTA, TDTE, LTDTA and STDTA.
A similar week observation is drawn from the Long term debt to total assets, LTDTA i.e.
In the table a similar result can be seen, that the profitability to increase with the risk with a value of 0.006618 with TDTA, this value further increases with TDTE 0.013834 and attains its maximum value, and is 0.008974 with LTDTA and 0.007334 with STDTA.