skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Is the nexus between capital structure and firm performance asymmetric? An emerging market perspective

Cogent economics & finance, 2024-12, Vol.12 (1) [Peer Reviewed Journal]

ISSN: 2332-2039 ;EISSN: 2332-2039 ;DOI: 10.1080/23322039.2023.2296195

Full text available

Citations Cited by
  • Title:
    Is the nexus between capital structure and firm performance asymmetric? An emerging market perspective
  • Author: M. N., Nikhil ; Shenoy, Sandeep S. ; Chakraborty, Suman ; B. M., Lithin
  • Subjects: GMM ; Leverage ; non-homogeneous ; nonlinear relation ; profitability ; quantile regression
  • Is Part Of: Cogent economics & finance, 2024-12, Vol.12 (1)
  • Description: AbstractThe nature of the relationship between leverage and firm performance has been a subject of investigation in extant literature. We re-examine the nature of the association by using a sample of 78 non-financial firms listed in the Nifty 100 index during the 2013-2023 period by applying the quantile regression technique and comparing the result with the linear regression approach (system GMM technique). Our empirical analysis demonstrates that leverage negatively impacts the performance of firms. Further, results show that the association is non-homogeneous among firms of different quantiles: leverage withers the performance of highly profitable firms (upper quantile) than low profitable firms (lower quantile). The identified concave relationship highlights the prominence of optimal capital structure and the role of finance managers in designing a sound financial policy that matches firm characteristics and borrowing requirements. The findings of our study draw insightful implications for managers and policymakers while contributing to the ongoing leverage and firm performance debate reported in previous studies.
  • Publisher: Taylor & Francis Group
  • Language: English
  • Identifier: ISSN: 2332-2039
    EISSN: 2332-2039
    DOI: 10.1080/23322039.2023.2296195
  • Source: Taylor & Francis Open Access
    ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait