Debt Financing and Financial Performance: Empirical Evidence of Indian SMEs Listed in BSE-SME Platform

Rajamani, K.

doi:10.1007/978-3-030-63149-9_14

Cited by 11 publications

(18 citation statements)

References 49 publications

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“…Although Abuamsha and Shumali (2022); Olayemi and Fakayode (2021); Uremadu and Onyekachi (2019); all claimed that capital structure had no bearing on business performance, the findings of the studies above contradict such claims. It also differs from the findings of Dat (2022); Islam and Iqbal (2022); Orlu et al (2022); and Rajamani (2021) which show that capital structure has a significant, adverse impact on firm performance. This happens because when a company uses a proportion of debt that is too large in its capital structure, the resulting net profit is not enough to pay off the financial burden of the debt.…”

Section: Capital Structure's Effect On Firm Performancecontrasting

confidence: 94%

“…The effect of CEO overconfidence on capital structure is also proven by Mundi and Kaur (2022) in their research, which states that overconfident CEOs use a large proportion of debt compared to equity to finance company operations. Dat (2022); Alfawareh et al (2022); Orlu et al (2022);and Rajamani (2021) prove that capital structure affects firm performance. Performance can be negatively impacted by the capital structure's excessive usage of debt since it can restrict managers' ability to oversee business operations.…”

Section: The Mediating Role Of Capital Structure In the Impact Of Ceo...mentioning

confidence: 97%

“…Research by Zhang et al (2021) and Mundi & Kaur (2022) prove that CEO narcissism and CEO overconfidence have a significant influence on decisions to use debt and equity in the capital structure. Capital structure significantly influences company performance based on research by Dat (2022); Islam and Iqbal (2022); Orlu et al (2022); Rajamani (2021); Evbayiro-Osagie & Enadeghe (2022); Orji et al (2021) and Yinusa et al (2019). It needs more research because previous studies have shown that CEO narcissism, CEO overconfidence, capital structure, and firm performance are all strongly related.…”

Section: Introductionmentioning

confidence: 99%

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CEO Narcissism and CEO Overconfidence on Firm Performance: The Role of Capital Structure as Mediating Variable

Candy,

Delfina

2023

J. Keuang. dan Perbank.

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Chief Executive Officers (CEO) have an important role in a company’s future, including the financial decisions of a company. Therefore, this study investigates the role of capital structure as a variable that mediates the effect of CEO narcissism and CEO overconfidence towards the performance of Indonesian infrastructure companies that are listed on the Indonesia Stock Exchange. This study obtained 39 companies as a study sample from 2017 to 2021 and analyzed them using the multiple linear regression method. This study found that capital structure is negatively affected by CEO narcissism, and positively affected by CEO overconfidence. Capital structure doesn’t affect Return on Asset (ROA) but negatively affects Return on Equity (ROE). CEO narcissism doesn’t affect firm performance as measured by ROA but positively affects ROE. Unlike the CEO overconfidence doesn’t affect either ROA or ROE. Moreover, the capital structure can mediate the impact of CEO narcissism and overconfidence on ROE, but it cannot mediate the impact on ROA. The results of this study contribute to academics as well as corporate knowledge as research regarding CEO narcissism and CEO overconfidence is uncommon and can be useful as a reference for companies.

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Section: Capital Structure's Effect On Firm Performancecontrasting

confidence: 94%

Section: The Mediating Role Of Capital Structure In the Impact Of Ceo...mentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

CEO Narcissism and CEO Overconfidence on Firm Performance: The Role of Capital Structure as Mediating Variable

Candy,

Delfina

2023

J. Keuang. dan Perbank.

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“…"Relationship between financial leverage and shareholders' return" in the studies of Kannadhasan et al (2016); Al-Hassan and Gupta (2013); Ayodele (2013) proves positive relation but negatively by Abor (2005); Nirujah et al (2014); Mehta (2014). "Relationship between financial leverage and financial performance" either shows positive impact (Ali, 2014;Maroko, 2014;Fosu, 2013), or little effect (Rajamani, 2021) or negative (Jose, 2017;Mwangi et al, 2014) in the context of India and also from other nations.…”

Section: Pecking-order Theorymentioning

confidence: 99%

Impact of Financial Leverage on Shareholders Return and Financial Performance: Evidence from Top 100 Listed Companies in National Stock Exchange

Rifana¹,

Geetha²

2022

OJC

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Financial management’s key objective is to enrich capital structure and financial decisions. The vital issue during capital structure decision-making is determining a firm’s proper balance of owed and owned capital. One globally accepted issue is financial leverage, popularly known as the “Double-edged Sword”. It can maximize the shareholders’ benefit and boost the company’s financial performance and vice versa. So an effort made “to find out the impact of financial leverage on shareholders return and financial performance of Top 100 National Stock Exchange companies in India”. National Stock Exchange registered companies as per market capitalization were obtained. The Descriptive Statistics, Panel-Data Regression Analysis (Breusch-Pagan LM Test, Hausman Test) and Structural Equation Model (SEM) were analyzed from 2017 to 2021. The Outcome illustrates that DER has a positive influence on ROE, CR and NPR which relating to the “Trade-off Theory”. DER has negative impact on EPS, ICR and TATR supporting “Pecking order Theory”. The framed empirical SEM act as a theoretical contribution to the future researchers.

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“…For short-term solvency, it means that the company repays liabilities that are due within one year, such as shortterm interest, accounts payable, etc. Long-term solvency generally refers to the company's repayment of more than one year's liabilities such as long-term liabilities, bonds payable, and long-term payables [3].…”

Section: Introductionmentioning

confidence: 99%

Research on the Analysis Method of Small and Medium-sized Enterprises' Solvency Based on Financial Data Analysis

Guo¹

2022

Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2

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With the rapid development of modern credit economy, debt management has become an important financing method and development strategy for modern enterprises. Reasonable application of debt management and full use of financial leverage will bring more benefits to enterprises. However, debt management also has potential risks, especially for small and medium-sized enterprises. Insufficient debt solvency can easily lead to serious consequences such as broken capital chain. This paper combines the big data analysis method to mine financial data, analyzes the relevant indicators of solvency, sorts out the problems existing in the solvency analysis of SMEs, and puts forward specific strategies to improve the solvency of SMEs, in order to help SMEs develop healthily, continuously and healthily under the background of big data.

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Debt Financing and Financial Performance: Empirical Evidence of Indian SMEs Listed in BSE-SME Platform

Cited by 11 publications

References 49 publications

CEO Narcissism and CEO Overconfidence on Firm Performance: The Role of Capital Structure as Mediating Variable

CEO Narcissism and CEO Overconfidence on Firm Performance: The Role of Capital Structure as Mediating Variable

Impact of Financial Leverage on Shareholders Return and Financial Performance: Evidence from Top 100 Listed Companies in National Stock Exchange

Research on the Analysis Method of Small and Medium-sized Enterprises' Solvency Based on Financial Data Analysis

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