“…First, prior studies show conflicting results on the association between firm performance and its capital structure choices. Extant literature show both negative (Baker & Wurgler, 2002;Bastos, Nakamura, & Basso, 2009;Drobetz & Wanzenried, 2006;Fama & French, 2012;Hall, Hutchinson, & Michaelas, 2004;Rajan & Zingales, 1995;Titman & Wessel, 1988;Yang, Lee, Gu, & Lee, 2010) and positive (Antoniou, Guney, & Paudyal, 2009;Espinosa, Maquieira, Vieito, & González, 2012;Huang & Song, 2006;Memon et al, 2015;Murray & Vidhan, 2009) relationship between firm capital structure and firm performance. This motivates further studies that adopt alternative indicators for firm performance.…”