2021
DOI: 10.26710/sbsee.v3i1.1829
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The Effect of Leverage and Debt Maturity on the Corporate Financial Performance: Evidence from Non Financial Firms Listed at Pakistan Stock Exchange

Abstract: Purpose This study examined the effect of leverage, debt maturity on corporate financial performance of non-financial firms listed at the Pakistan Stock Exchange. Targeted population of this study was 100 firm listed at PSX as KSE-100 index out of which 74 non-financial firms were selected from 28 different sectors for the period of 5 years 2013 to 2017. Design/Methodology/Approach: Financial performance measured by ROA, ROE, while leverage, short term leverage, long term leverage taken as independent v… Show more

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Cited by 11 publications
(13 citation statements)
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“…The effect of inflation rate, however stayed insignificant. The pattern of the effect of firm level indicators and macroeconomic variables showed nearly similar pattern as reported in some past studies (Ajanthan, 2013;Ali et al, 2022;Chaudhary & Abbas, 2017;Chen, 2020;Das et al, 2022;Fosu et al 2016;Ismail, 2016;Khan et al, 2021;Muritala, 2012;Thanh & Ha, 2013;Vătavu, 2015;Zainudin, 2006). Significant and positive coefficient of interaction term indicate that higher leverage remained beneficial for firms' performance during the crisis episodes.…”
Section: Resultssupporting
confidence: 85%
See 1 more Smart Citation
“…The effect of inflation rate, however stayed insignificant. The pattern of the effect of firm level indicators and macroeconomic variables showed nearly similar pattern as reported in some past studies (Ajanthan, 2013;Ali et al, 2022;Chaudhary & Abbas, 2017;Chen, 2020;Das et al, 2022;Fosu et al 2016;Ismail, 2016;Khan et al, 2021;Muritala, 2012;Thanh & Ha, 2013;Vătavu, 2015;Zainudin, 2006). Significant and positive coefficient of interaction term indicate that higher leverage remained beneficial for firms' performance during the crisis episodes.…”
Section: Resultssupporting
confidence: 85%
“…Similarly, GDP per capital growth rate and inflation rate are used as macroeconomic control variables in the model. Some past studies were followed for selection of control variables (Chaudhary & Abbas, 2017;Khan, Ullah, & Afeef, 2021;Thanh & Ha, 2013).…”
Section: Perit = α0+α1levit+α2liqit+α3invit+α4tangit+α5lntait+β6gdpit...mentioning
confidence: 99%
“…Namun perlu diingat bahwa cash merupakan aset yang paling rentan terhadap penyalahgunaan dan pengalihan. Oleh sebab itu, tingkat cash holding yang terlalu tinggi dapat menyebabkan inefisiensi, meningkatkan risiko, dan kehilangan peluang investasi (Khan et al, 2020).…”
Section: Pendahuluanunclassified
“…In business and economics, the tendency of the golden ratio has been widely used in economic development, management, sales, stock market analysis, growth forecast, quality control, and fraud detection. Several studies investigate the association between capital structure and firm profitability in manufacturing and services (e.g., Mahmood et al, 2017;Akhtar et al, 2019;Khan et al, 2021;Imran & Sulehri, 2023). However, affirming previous literature, little attention has been given to exploring the capital structure level using the golden ratio.…”
Section: Overview Of the Textile And Service Sector Of Pakistanmentioning
confidence: 99%