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FINANCIAL LEVERAGE AND GROWTH: SMALL VERSUS LARGE INDONESIAN FIRMS

Global Business and Finance Review, 2007, 12(2), , pp.31-40 [Peer Reviewed Journal]

2007. This work is licensed under https://creativecommons.org/licenses/by-nc/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 1088-6931 ;EISSN: 2384-1648

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  • Title:
    FINANCIAL LEVERAGE AND GROWTH: SMALL VERSUS LARGE INDONESIAN FIRMS
  • Author: Harjoto, Maretno ; Ha-Chin, Yi
  • Subjects: financial growth ; financial leverage ; general equilbrium framework ; indonesian firms ; Interest rates ; 경영학
  • Is Part Of: Global Business and Finance Review, 2007, 12(2), , pp.31-40
  • Description: This study empirically examines the relationship between growth and leverage at the small and large firms in a general equilibrium framework. Using three-stage least square method on a sample of Indonesian small ones can utilize debt leverage to increase their growth. This study also finds that small firms have higher opportunities to grow due to higher returns on asset and equity, pay lower interest rates, and have lower leverage. However, we find that small firms’ growth and leverage are significantly influenced by macroeconomic variables, measured by the real gross domestic product per capital and interest rates.
  • Publisher: Seoul: People and Global Business Association
  • Language: English
  • Identifier: ISSN: 1088-6931
    EISSN: 2384-1648
  • Source: AUTh Library subscriptions: ProQuest Central
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