Capital Structure and Firm Performance in Australian Service Sector Firms: A Panel Data Analysis

Abstract

Using cross-sectional panel data over eleven years (2009–2019), or 1001 firm-year observations, this study examines the relationship between capital structure and firm performance of service sector firms from Australian stock market. Unlike other studies, in this study directional causalities of all performance measures were used to identify the cause of firm performance. The study finds that long-term debt dominates debt choices of Australian service sector companies. Although the finding is to some extent similar to trends in debt financed operations observed in companies in developed and developing countries, the finding is unexpected because the sectoral and institutional borrowing rules and regulations in Australia are different from those in other parts of the world.

The Effect of Current Ratio, Total Asset Turnover, Debt to Asset Ratio, and Debt to Equity Ratio on Return on Assets in Plantation Sub-Sector Companies Listed on the Indonesia Stock Exchange

“…These results are not in line with previous research, which states that the Current Ratio has a significant effect on Return on Assets (E. Damayanti & Chaeruddin, 2021), (Zaman, 2021), (Zarkasy et al, 2021), (Angelina, 2020), (Samo & Murad, 2019), (Ahmed & Bhuyan, 2020). These results align with previous research, which states that the Current Ratio has no effecton Return on Assets (Hutagaol & Sinabutar, 2021;N.O.…”

Capital Structure and Firm Performance of Technology Sector in Malaysia

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Determinants of Capital Structure from Shariah-Compliant Firms in Travel, Leisure and Hospitality Sector in Malaysia

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