Impact of Financial Leverage on Firm Performance
Journal Title: SEISENSE Journal of Management - Year 2018, Vol 1, Issue 2
Abstract
The aim of this research is to identify the relationship between financial leverage and the performance of Textile Composite Companies of Pakistan. Pakistan Textile Composite Companies which are listed in PSX (100 - index) are selected.5 - year data is collected from 2011 - 2015 and top 16 companies are selected as a sample. Using descriptive stati stics, correlation analysis and regression model to identify the results. Results show that financial leverage has negative and significant effect on firm ROE and financial leverage has positive and significant effect on firm ROA. Further study indicates t hat the high interest rate and more amount of debt decreases the value of equity and has negative impact on firm performance. On the other hand, the amount of debt has positive impact on firm ROA. Results show that financial leverage has positive impact on firm performance if the amount of debts do not exceed from the amount of equity.
Authors and Affiliations
Umer Iqbal, Muhammad Usman
Keywords
Related Articles
- EP ID EP39064
- DOI 10.5281/ zenodo. 1241454
- Views 351
- Downloads 0
Impact of Talent Management Practices on Employee Performance
Purpose - The purpose of this study was to determine the effect of talent management practices on employee performance among employees working in healthcare organization...
The Relationships between Leader Creativity Expectations, Intrinsic Motivation, and Creative Performance
The objectives of this conceptual paper are two fol ds: to propose and argue a) the direct relationship between leader creativity expectations and creative performance; and b) the mediating role...
The Impact of Strategic Planning on Growth of Small Businesses in Nigeria.
Purpose - T here is a need to develop a framework that will improve the understandings of business planning and performance and its effects on growth particularly during the...
Assessment of Quantity Surveying Firms' Process and Product Innovation Drive in Nigeria
Purpose - Innovati on repositions and strengthens the competitive advantage and revenue drive of corporate businesses . The aim of this study is to assess the extent of the process...
Effect of Dividend Policy on Firm’s Performance: A Case Study of Cement Sector of Pakistan
SEISENSE Journal of Management Vol 1 No 5 (2018): DOI: https: //doi.org/10.5281/zenodo. 1450462 , 6 - 15 Articles 6 Effect of Dividend Policy on Firm’s Performance: A Case Study of Cement Sector of Pakist...