Effect of Corporate Financial Leverage on Financial Performance: A Study on Publicly Traded Manufacturing Companies in Bangladesh

Dey, Ripon Kumar; Hossain, Syed Zabid; Rahman, Rashidah Abdul

doi:10.5539/ass.v14n12p124

Cited by 12 publications

(13 citation statements)

References 19 publications

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“…These variables have been widely used in the existing literature. For MFI‐specific control variables, we include total assets (Dey, Hossain, & Rahman, ; Mersland & Strøm, ; Strøm et al, ; Ullah, ; Xu & Wang, ), cost per borrower (Haq, Skully, & Pathan, ; Qayyum & Ahmad, ; Segun & Anjugam, ), administrative expense ratio (Christen & MacDonald, ), and real portfolio yield (Cull, Demirgüç‐Kunt, & Morduch, ; D'Espallier, Hudon, & Szafarz, ; Louis et al, ). For macroeconomic control variables, we use real GDP growth and inflation (Ahlin, Lin, & Maio, ; Barry & Tacneng, ).…”

Section: Methodsmentioning

confidence: 99%

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How does microfinance prosper? An analysis of environmental, social, and governance context

Tanin

Mobin²,

et al. 2019

Sustainable Development

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The spotlight of this study is to examine whether environmental, social, and governance performance affects the financial performance of microfinance institutions (MFIs). The topic has been of much interest to researchers and policymakers due to increased awareness among stakeholders on the adverse social and environmental impacts of business actions. Using a dataset covering 5 years for 62 MFIs across 34 countries, we find that environmental and governance performance has no impact on the financial performance of MFIs. As for the social–financial performance nexus, our results reveal a positive relationship using the depth of outreach as proxy of social performance. However, when women empowerment is used as a proxy for social performance, evidence suggest presence of negative relationship. The study contributes to the literature by providing new evidence on the relationship between environmental, social, and governance and financial performance from microfinance industry. Our results are robust to a variety of econometric specifications and have significant policy implications for donors, investors, MFIs, and regulators.

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Section: Methodsmentioning

confidence: 99%

“…These results are presented in Table . The approach of using different variables for robustness of the results has been commonly used in the existing literature (Dey et al, ; Xu & Wang, ).…”

Section: Empirical Findingsmentioning

confidence: 99%

How does microfinance prosper? An analysis of environmental, social, and governance context

Tanin

Mobin²,

et al. 2019

Sustainable Development

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“…Variabel independen selanjutnya yaitu growth opportunity yang merupakan peluang pertumbuhan masa depan perusahaan yang memegang peranan penting dalam keputusan investasi perusahaan (Zhang et al, 2019). Pengukuran growth opportunity perusahaan dapat dilihat dari sales growth (Dey et al, 2018) Variabel independen selanjutnya yaitu growth opportunity yang merupakan peluang pertumbuhan masa depan perusahaan yang memegang peranan penting dalam keputusan investasi perusahaan (Zhang et al, 2019). Pengukuran growth opportunity perusahaan dapat dilihat dari sales growth (Dey et al, 2018) sebagai berikut: 𝑆𝑎𝑙𝑒𝑠 𝑔𝑟𝑜𝑤𝑡ℎ = 𝑆𝑎𝑙𝑒𝑠 1 − 𝑆𝑎𝑙𝑒𝑠 𝑡−1 𝑆𝑎𝑙𝑒𝑠 𝑡−1 Profitabilitas adalah dependent variable yang merupakan kemampuan perusahaan memperoleh pendapatan dalam jangka waktu tertentu (Hossain & Alam, 2019).…”

Section: Metode Penelitianunclassified

“…Pengukuran growth opportunity perusahaan dapat dilihat dari sales growth (Dey et al, 2018) Variabel independen selanjutnya yaitu growth opportunity yang merupakan peluang pertumbuhan masa depan perusahaan yang memegang peranan penting dalam keputusan investasi perusahaan (Zhang et al, 2019). Pengukuran growth opportunity perusahaan dapat dilihat dari sales growth (Dey et al, 2018) sebagai berikut: 𝑆𝑎𝑙𝑒𝑠 𝑔𝑟𝑜𝑤𝑡ℎ = 𝑆𝑎𝑙𝑒𝑠 1 − 𝑆𝑎𝑙𝑒𝑠 𝑡−1 𝑆𝑎𝑙𝑒𝑠 𝑡−1 Profitabilitas adalah dependent variable yang merupakan kemampuan perusahaan memperoleh pendapatan dalam jangka waktu tertentu (Hossain & Alam, 2019). Profitabilitas diukur dengan return on assets (ROA) yang memberikan wawasan tentang efisiensi manajemen berdasarkan penggunaan asetnya (Khrawish, 2011;Padachi, 2006;Nyobakora, 2020).…”

Section: Metode Penelitianunclassified

Hubungan Antara Cash Conversion Cycle Dan Growth Opportunity Dengan Profitabilitas

Agustin

Suryani

2022

JEB

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Profitabilitas menjadi indikator dalam pengembangan perusahaan dengan perolehan pendapatan dalam mengelola operasi perusahaan. Perusahaan berupaya mempertahankan dan meningkatkan profitabilitas untuk mengukur kinerja perusahaan dengan meningkatkan efisiensi manajemen modal kerjanya. Penelitian ini menyelidiki pengaruh manajemen modal kerja melalui cash conversion cycle dan growth opportunity melalui sales growth terhadap profitabilitas perusahaan. Penelitian ini dilakukan pada 91 perusahaan sektor industri barang konsumsi di Indonesia dari tahun 2015 hingga 2020. Pengujian hipotesis dari 489 data dilakukan dengan analisis regresi data panel dengan model random effect. Hasil penelitian menunjukkan bahwa CCC dan growth opportunity tidak berpengaruh signifikan terhadap profitabilitas. Temuan ini menunjukkan bahwa perusahaan sektor barang konsumsi perlu melakukan pertimbangan mengenai pengelolaan manajemen modal kerja yang menjadi bagian dalam operasional perusahaan secara efisien, sehingga perusahaan dapat memaksimalkan keuntungan perusahaan.

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“…Penelitian yang dilakukan Lola et al, (2020) menyatakan bahwa leverage berpengaruh terhadap kinerja keuangan. Hal ini sejalan dengan penelitian Dey et al, (2018) menyatakanbbahwa ROA berpengaruhtterhadap leverage. Namun penelitian ini bertolak belakang dengan penelitian Linawati & Halim, (2017) menyatakan"leverage berpengaruh"terhadap profitabilitas.…”

Section: Pendahuluanunclassified

Faktor-faktor yang Mempengaruhi Kinerja Keuangan Perusahaan BUMN yang Terdaftar di Bursa Efek Indonesia Periode 2015-2019

Kharisma¹,

Titisari²,

Suhendro³

2021

Ekonomis

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This study aims to determine the effect of good corporate governance, corporate social responsibility, leverage and company size on the financial performance of state-owned companies listed on the IDX. The data in this study use secondary data. The population in the study of all BUMN companies listed on the IDX for the 2015-2019 period. The sample used in this study was 9 samples of BUMN companies listed on the IDX for the 2015-2019 period, with the sampling method using purposive sampling method. The test method in this study uses multiple linear regression test. The results show that good corporate governance, leverage and company size affect the financial performance of BUMN companies listed on the IDX for the 2015-2019 period, on the other hand, corporate social responsibility does not affect the financial performance of BUMN companies listed on the IDX for the 2015-2019 period. had no effect on the financial performance of BUMN companies listed on the IDX for the 2015-2019 period.

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Effect of Corporate Financial Leverage on Financial Performance: A Study on Publicly Traded Manufacturing Companies in Bangladesh

Cited by 12 publications

References 19 publications

How does microfinance prosper? An analysis of environmental, social, and governance context

How does microfinance prosper? An analysis of environmental, social, and governance context

Hubungan Antara Cash Conversion Cycle Dan Growth Opportunity Dengan Profitabilitas

Faktor-faktor yang Mempengaruhi Kinerja Keuangan Perusahaan BUMN yang Terdaftar di Bursa Efek Indonesia Periode 2015-2019

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