Leverage, foreign borrowing and corporate performance: firm-level evidence for India
This article examines the association between corporate leverage and profitability. Using firm-level data on manufacturing sector in India for 1995-2004, the findings indicate that corporate profitability and cash flows declines as leverage rises. More importantly, the marginal effect of an increase in leverage on earnings is larger for firms that participate in international debt markets than other firms. The results are robust after controlling for the economic environment and various firm-specific controls.
Year of publication: |
2008
|
---|---|
Authors: | Ghosh, Saibal |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 15.2008, 8, p. 607-616
|
Publisher: |
Taylor & Francis Journals |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Capital structure, ownership and crisis : evidence from Middle East and North African banks
Ghosh, Saibal, (2018)
-
Are women really risk-averse? The lending behavior of women-owned banking cooperatives in India
Ghosh, Saibal, (2018)
-
Banker directors and firm performance: Are family firms different?
Ghosh, Saibal, (2018)
- More ...