This is an empirical study that investigates the effect of firm's leverage on stock returns. For this purpose, new definitions of leverage and generalized method of movements (GMM) estimators were used. 102 listed companies for the period of 2003-2009 which met the criteria were chosen. The...

Cash was one of the main sources for the survival of the company. And it seems any company without access to right cash will benefit from the optimal performance. Previous research shows companies that are suitable in terms of liquidity that are more in profits and achieve higher financial...

Among the requirement set by Otoritas Jasa Keuangan (OJK) for a company to be Sharia compliant is 40% limit on the financial leverage ratio. Taking the Islamic perspective on the limitation of using interest-bearing instrument both as a means of financing and investing, this paper attempts to...

This research is aimed at analyzing the causality puzzle on the correlation between financial leverage and systematic risk (beta). Financial leverage and beta are usually considered as two proxies of risk derived from different domains: one ends at financial decision outcome, and the other...