Financial Structure and Performance: Evidence from Technology Companies in US Stock Exchange Markets

Many Financial decisions should be decided to get the optimal capital structure which shows the ability of the company to survive and compete in the market. Financing decision is one of the most important decisions that corporations make, determining the capital structure requires determining the level of debt and equity to be used to obtain the optimal capital structure. This study aim is to investigate the factors which affect the capital structure of a sample of some technology companies in the American stock exchange markets (NASDAQ and NYSE). Moreover, it aims to indicate the association of financial structure and financial performance. For this purpose, the study was conducted using panel data methodologies for five companies listed on the US stock market during 2006-2015. The data is collected from Thomson Reuters DataStream. The results of the study indicate that there is a negative association between profitability and leverage ratios and a positive association between the size of a firm and profitability. Moreover, the findings indicated that the tangibility of assets has positive relationships with profitability and debt financing. Keywords: Financial performance, Financial structure, US technology companies.