The effect of leverage on performance: Domestically-oriented versus internationally-oriented firms

Vithessonthi, Chaiporn; Tongurai, Jittima

doi:10.1016/j.ribaf.2015.02.016

Cited by 72 publications

(83 citation statements)

References 39 publications

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“…These adverse features could be the reason of negative leverage-performance relation in developing economies as found by many of prior studies given in Table 1. (Hailu, 2015) Ethiopia - (Hedayatzadeh, 2015) Tehran - (Alipour & Pejman, 2015) Iran - (Boadi & Li, 2015) Ghana - (Vătavu, 2015) Romania - (Mule & Mukras, 2015) Kenya - (Nakhaei & Jafari, 2015) Tehran - (Nguyen & Nguyen, 2015) Vietnam - (Ramadan & Ramadan, 2015) Jordan - (Resić, Mangafić, & Peric, 2015) Bosnia and Herzegovina - (Rouf, 2015) Bangladesh - (Vithessonthi & Tongurai, 2015) Thailand -(Akinlo & Asaolu, 2012) Nigeria -(Ebaid, 2009) Egypt - (Chen, Chen, Liao, & Chen, 2009) Taiwan - (Memon, Bhutto, & Abbas, 2012) Pakistan - (Umar, Tanveer, Aslam, & Sajid, 2012) Pakistan -Abor, (2005) Ghana - (Hung, Albert, & Eddie, 2002) Hong Kong -However, it is argued that study of direct leverage-performance relation is not useful as it depends on various contingencies and moderating factors (Farooq, Ashraf, & Ahmad, 2014). Intensity and even direction of leverage-performance relation can change because of these contingencies factors.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Debt Financing and Their Moderating Role to Leverage-Performance Relation: An Emerging Market Review

Qamar¹,

Farooq²,

Afzal³

et al. 2016

IJEF

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This study explored the determinants of debt financing and their moderating role to the leverage-performance relation in case of 304 Pakistani Nonfinancial firms listed with the Pakistan Stock Exchange. Results revealed that larger, high liquid and more tangible firms deployed least debt ratio on average, while less liquid and less tangible firms did conversely. It is also found that more debt borrowing by less liquid firms and less borrowings by larger and more liquid firms is not favourable decision and managers need to revise their financing policy. The results also suggested that debt borrowings least affect firms' profits for larger, high liquid, less tangible and high growth oriented firms. Hence, this research provides practical solutions for financial managers by exploring if managers are following right mix of securities and when debt borrowings is a most favourable option of financing.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of Debt Financing and Their Moderating Role to Leverage-Performance Relation: An Emerging Market Review

Qamar¹,

Farooq²,

Afzal³

et al. 2016

IJEF

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“…Uji ini dilanjutkan dengan membedakan antara perusahaan berorientasi internasional maupun orentasi domestik untuk mendapatkan gambaran yang lebih jelas peran variabel independen dalam konteks perusahaan yang memiliki perbedaan orientasi. Perusahaan berorientasi internasional adalah perusahaan yang terlibat dalam kegiatan ekspor atau impor, maupun keduanya (Vithessonthi dan Tongurai, 2015b). Variabel ini diukur dengan menggunakan dummy.…”

Section: Definisi Operasionalunclassified

“…Variabel kontrol dalam penelitian ini adalah ukuran perusahaan, tangibility, dan umur perusahaan. Ukuran perusahaan diukur dengan natural logaritma dari total aset perusahaan (Chung dkk., 2013;Vithessonthi dan Tongurai, 2015b). Berger dan Bouwman (2013) menyatakan bahwa ukuran perusahaan ini adalah salah satu karakteristik perusahaan yang diharapkan memiliki pengaruh untuk mendorong perusahaan berkinerja positif.…”

Section: Definisi Operasionalunclassified

Zombie Dan Diversifikasi Dalam Masa Krisis Keuangan Global

Novita

Tjahjadi

Irwanto

2019

JRAK

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This study aims to examine whether a firm with a higher degree of related diversification is less likely to have a zombie condition during the global financial crisis. The research sample is non-financial firms listed on the Indonesia Stock Exchange in the year of the global financial crisis from [2007][2008][2009]. Data are analyzed using logistic regression. The results of the study indicate that a firm with a higher degree of related diversification is less likely to have a zombie condition during the global financial crisis. Furthermore, the effect of this diversification proves to be higher for a firm with a domestic orientation than an international orientation.

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“…To our knowledge, this issue has not been addressed in the literature. The existing literature focuses primarily on (1) the effect of corporate governance on corporate value (Chen et al, 2014), and (2) the effect of leverage on productivity (González, 2013, Vithessonthi & Tongurai, 2015.…”

Section: Insiders Ownershipmentioning

confidence: 99%

Impact of Corporate Governance on Value Creation and Corporate Productivity: Evidence from Tunisian Context

Ayari¹,

Regaieg²

2018

IJEF

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The governance practices and the value of the company have ancient origins but still relevant. Faced with economic, social and environmental upheavals, the Tunisian company is subject to contradictory injunctions and must redefine its role in society. Today there is a general consensus that governance has a significant impact on the value of the company. The areas on which governance can act to create value are many and varied and there can be no question of looking at them exhaustively. The purpose of this paper is to examine the impact of governance mechanisms on the value creation of Tunisian firms, particularly measured by total factor productivity. Based on a sample of 28 corporations listed on Tunisian stock market during the period 2008-2014, our study employs regression analysis to test the impact of governance mechanisms on firm value as measured by productivity. As predicted by the theory, empirical data show (i) that debts have a negative and significant effect on productivity such as measured by the ratio of total debt to total assets. (ii) the presence of institutional investors on boards of directors also increases the value of the company. (iii) However, contrary to previous studies, the duality that combines the functions of the Chairman of the Board and the Chief Executive Officer has no effect on the value creation of Tunisian companies.

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The effect of leverage on performance: Domestically-oriented versus internationally-oriented firms

Cited by 72 publications

References 39 publications

Determinants of Debt Financing and Their Moderating Role to Leverage-Performance Relation: An Emerging Market Review

Determinants of Debt Financing and Their Moderating Role to Leverage-Performance Relation: An Emerging Market Review

Zombie Dan Diversifikasi Dalam Masa Krisis Keuangan Global

Impact of Corporate Governance on Value Creation and Corporate Productivity: Evidence from Tunisian Context

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