We propose a simple idea that corporate debt maturity should serve as a good indicator of future firm performance volatility. We show in a simple two-period model that the riskiness of corporate investment is a decreasing function of corporate debt maturity. If “observable” corporate debt...

This study investigated the relationship between capital structure, equity ownership and firm performance using a sample of 438 BSE-Listed Indian companies over a period of five years (2005-2010). The study constructs efficiency through data envelopment analysis (DEA). Using panel data analysis...

The choice of how business activities are financed is vital to every firm. This is because optimal or balanced capital mix between debt and equity impacts on the firm's value as well as its market valuation. However, optimal capital mix has over the years attracted attention due to its...

This study examines the effect of capital structure on value of firm of automobile companies during 2009 to 2018. Variables including size. Profitability, Tangibility. Growth and age taken for examining value of firm .the study found that the relation indicates leverage, profit, size,...

This study investigates the effect of family firm on corporate performance and financial policy (capital structure, cash holding, and cash dividends). Using a sample of Brazilian firms, the study uses a treatment effect model to address self-selection and endogeneity problems. The results show...

The relationship between financial leverage and firm performance is studied in this paper. Financial leverage can positively influence firm performance because leverage can be treated as a tool for disciplining management. The results for a large sample of Russian joint-stock companies over the...

This study uses corporate tax return data to examine the evolution of firms' financial structure and performance after leveraged buyouts (LBOs) for a comprehensive sample of 317 LBOs taking place between 1995 and 2007. We find little evidence of operating improvements subsequent to an LBO,...

We model theoretically the optimal capital structure of entrepreneurial firm relying on an endogenous estimation of the return requested by entrepreneurs that compensates for the risk they incur in case of bankruptcy. We estimate the probability according to the Bayesian approach. We also...

Purpose –This paper seeks to estimate the impact of capital structure selection on performance in Ghana.Design/methodology/approach – Generalized Methods of Moments (GMM) is used in the study in estimating the relationship between the leverage level and bank's performance.Findings – The...

Do entrepreneurs work less or harder when they borrow more? This paper tests how entrepreneurial effort is affected by the firm's financing choice. In line with the typical agency theory prediction, entrepreneur effort is negatively related to the magnitude of equity financing. Furthermore,...