Purpose This study aims to investigate the impact of corporate characteristics on leverage in the Gulf Cooperation Council (GCC) non-financial listed firms. Design/methodology/approach A sample comprising a balanced panel for eight years from 2009–2016 for four Gulf countries is used. In total, 85 non-financial listed companies have been selected using a non-probability sampling technique. Corporate characteristics are represented by return on assets (ROA), return on equity, return on capital employed, market value-added, Tobin-Q, liquidity and firm size. The study used fixed and random effect models to estimate the results. Findings The findings of the study revealed that both ROA and FSIZE have a significant negative effect on leverage. However, market value-added, return on capital employed and Tobin-Q exhibited a statistically significant positive effect on leverage. Further, the results indicated that Qatar is better than kingdom of Saudi Arabia (KSA), Oman and the UAE. In addition, evidence noted that KSA is better than both UAE and Oman in terms of the overall impact of corporate characteristics on the leverage. However, this effect is not statistically significant. Practical implications This study provides an open insight for managers, bankers, financial analysts in the GCC countries and some other developing economies by highlighting the relationship between corporate characteristics and leverage in an emerging market. Originality/value The current study provides an important insight into corporate characteristics and leverage. By so doing, it provides an attempt to identify the factors influencing corporate financing behavior taking into consideration different issues such as different proxies of firms’ profitability, market capitalization, market value added and liquidity, which provides original evidence from Gulf countries emerging markets. These countries are characterized by low tax rates and high liquidity. High liquidity may reduce the cost of borrowing and debt financing may not be a huge burden on firms’ profits. This makes the investigation of leverage and corporate characteristics, particularly, firms’ profitability and liquidity, very important. Therefore, the study tries to bridge an existing gap in the body of literature of capital structure and debt financing in Gulf countries emerging markets.
The main aim of this article is to examine the effect of firms’ specific on the financial performance of Indian firms. The study is based on 1069 firms listed on the Bombay stock exchange for the period from 2011 to 2017. Descriptive statistics, correlation matrix, and regression models are used for analyzing the data. The study found that cost of financial distress, growth opportunities, firms size, and total taxes positively and significantly impact the financial performance of Indian firms measured by return on assets and return on capital employed. On the contrary, asset structure and leverage negatively and significantly impact the financial performance of Indian firms. Most previous studies were based on small samples; this article bridges an existing gap in the literature by covering large data of1069 firms for seven years which make the results of the study to be generalized. The findings of this study have useful implications for policymakers, practitioners, and academicians.
This paper examines corporate governance's effect on the valuation of Earnings per Share (EPS) and Book Value (BV).Differently from empirical previous studies in the area of corporate governance and value relevance of EPS and BV, this study investigates this impact within a unique setting of publicly listed tourism firms Using panel data from a selection of some Bombay Stock Exchange (BSE) listed companies from 2013 to 2015. The paper explored three aspects of the mechanisms of corporate governance: the board of directors (size, composition and diligence), the audit committee (size, composition and diligence) and foreign ownership .The study uses descriptive statistics, correlation and multi-regression model to analyse the influence of corporate governance on the value relevance of EPS and BV for the Indian tourism industry. The results show that the interaction between corporate governance mechanisms and value relevance of BV has more impact on the share prices than EPS. It is recommended that the Indian tourism industry should pay more focus to corporate governance mechanisms in order to improve its value relevance of EPS, BV and share prices.
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