Firm leverage decisions: Does industry matter?

Islam, Silvia Zia; Khandaker, Sarod

doi:10.1016/j.najef.2014.10.005

Cited by 26 publications

(16 citation statements)

References 43 publications

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“…Financial leverage is used in various circumstances as a means of altering the cash flow and financial position of a company. Capital structure decisions are critical as a shift in leverage could increase or decrease the financial strains on companies [5,6]. Reference [7] and [8] argued that there exists an optimal leverage ratio that equates the marginal benefits of debt such as tax shields to the marginal costs of debt such as increase in expected bankruptcy costs.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Financial Leverage and Market Size on Stock Returns on the Dhaka Stock Exchange: Evidence from Selected Stocks in the Manufacturing Sector

Abdullah¹

2015

IJEFM

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This paper examines the impact of financial leverage and market size of selected stocks on stock returns. Ordinary Least Square (OLS) regression models were used to examine the relationship between the dependent and independent variables. The leverage of the selected firms was estimated from the annual financial reports covering a period of five years from 2008 to 2012 of five corporations operating in the manufacturing sector. Furthermore, average monthly stock prices of the selected stocks between 2008-2012 for Fu-Wang Ceramic, Fine Foods Limited, Olympic Industries, Metro Spinning and Rahim Textiles. The study established a significantly negative relationship between leverage and stock return when the overall industrial data is used. However at the individual firm level the relationship was not stable. Four out of the five selected companies (i.e. Fu-Wang Ceramic, Fine Foods Limited, Olympic Industries and Metro Spinning) all had negative leverage coefficients. Rahim Textile however, had a positive leverage coefficient. The paper also found the relationship between size and stock returns to be significantly positive. However, the size effect within the manufacturing sector was limited.

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Section: Introductionmentioning

confidence: 99%

The Impact of Financial Leverage and Market Size on Stock Returns on the Dhaka Stock Exchange: Evidence from Selected Stocks in the Manufacturing Sector

Abdullah¹

2015

IJEFM

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“…Capital structure and Firm Performance According to Besley & Brigham, (2007), capital structure is the mixture of debt (long term and short term debt), equity, and the net-worth that a firm can use as mode of permanent financing. Islam & Khandaker,(2015) argued that thefirms from mining sector seemed to be more conscious for their profitability whereas firms from nonmining sector had not any significant connection with profitability. They gave a view that every firm has different nature in conducting its business operations, which vary from industry to industry and for this reason the decision of how the capital structure affects the performance of a firm, rely on the industrycategorization of the corporations.…”

Section: 1mentioning

confidence: 99%

Mobile Commerce: A Rising Wave of Consumer Purchase Intention

Rehman

Sandhu

Rehan

2019

JAFEE

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Because of the commonness and extensive usage of online technology these days, mobile commerce is an emerging area of attraction for marketing research. Although there is a dearth of studies exploring the factors that influence on mobile commerce embracement and adoption through mobile applications in general, particularly the effect of mobile commerce adoption attitude using Technology Acceptance Model (TAM) remains uncharted. The exploration of the technology acceptance factors is quite challenging and demanding primarily due to the reason that online population is widely dispersed and diversified in terms of their dynamics. Still this area remains a venture of curiosity to the marketers due to magnetism in its potential. Current research assist marketers by providing an insight into the factors that explains this scenario and the results could be used to capitalize the fast growing online market. Three hypothesis strongly validated the effect of perceived trust, perceived value and social influence on mobile commerce adoption while perceived self-efficacy was found to have a little effect on mobile commerce adoption. Predominantly, it was found that Technology Acceptance Model (TAM) remains most effective predictor to mobile commerce adoption. Current research could be used to comprehend and take advantage of key psychological attributes mentioned in the study to upsurge the volume of existing mobile commerce market.

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“…Mule, Mukras, & Nzioka (2015) in his research proved that firm size has a significant positive effect on company performance. Then Pratama & Wiksuana (2016) and Islam & Khandaker (2015) proved that firm size had a significant positive on firm value.…”

Section: Introductionmentioning

confidence: 96%