Determinant Factors of Firm Leverage: An Empirical Analysis at Iasi County Level

Onofrei, Mihaela; Tudose, Mihaela Brîndușa; Durdureanu, Corneliu; Anton, Sorin Gabriel

doi:10.1016/s2212-5671(15)00097-0

Cited by 39 publications

(54 citation statements)

References 15 publications

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“…Second Stage Regression __________________________________________ Var PBD PBV __________________________________________ RPIF -0,0521*** -0,4697*** (-5,4575) (5,4695) CR 0,0003*** -0,0190*** (2,6717) (-5,6879) TATO 0,0002*** 0,0269** (3,5168) (2,0482) TANG 0,0011 0,1636*** (1,5999) (3,8492) N 285 285 Adj R 2 0,9936 0,9756 _____________________________________________ ***significant α = 1%, **significant α = 5%, *significant α = 10%. This is in line with the studies by Serghiescu et al (2014), Onofrei et al (2015), and Kim et al (1993) who also found a significant negative result. The results of this study are also supported by the pecking order theory, namely, when the profitability of the company increases, it will be easier for the company to generate internal funds for its activities so that less debt is used by the company.…”

Section: Resultssupporting

confidence: 92%

“…In the event of an increase in the company's performance (RPH and RPI), the company will also reduce the total debt that companies use for expansion, purchase of machinery and so on because companies prefer to use internal rather than external funding. This is in line with the findings of Serghiescu et al (2014), Onofrei et al (2015), and Kim et al (1993) who also found a significant negative result. The results of this study are also supported by the pecking order theory, namely when the profitability of the company rises, it will be easier for the company to generate internal funds for its activities so that less debt is used by the company.…”

Section: Resultssupporting

confidence: 92%

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Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Edward¹,

Marciano²

2019

Proceedings of the 16th International Symposium on Management (INSYMA 2019)

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The objective of this study is to examine the impact of internationalization, firm perfo rmance, and capital structure: an empirical study in Indonesia. This research used industrial manufacturing companies listed on the Indonesian Stock Exchange over the 2012 -2016 period. The dependent variable in this study is the capital structure. Independent variables used are internationalization an d firm performance, Control variables used are size, age current ratio, tangibility, and total asset turn over. This study used multiple linear regression analysis models (two -stage least square) to test the hypothesis with a sample of 57 manufacturing companies listed on the Indonesian Stock Exchange over the 2012-2016 period. The number of observations used in this study was 285 observations at first by using classical. The study findings suggest that internationalization has a significant positive effect on relative performance based on historical target, and a significant negative effect on relative p erformance based on the industrial target. While relative performance based on historical target and relative performance based on industrial target has a significant positive effect on short term debt and private debt and also has a significant negative effect on long term debt, total debt, and public debt.

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Section: Resultssupporting

confidence: 92%

Section: Resultssupporting

confidence: 92%

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Edward¹,

Marciano²

2019

Proceedings of the 16th International Symposium on Management (INSYMA 2019)

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“…Cooper and Lambertides (2018) find that there is a large increase in dividend, followed by a significant increase in leverage. Onofrei, Tudose, Durdureanu, and Anton (2015) investigate the determinants for small enterprises employing debt ratio (DR) as the dependent variable and profitability (PFT), tangibility, liquidity (LQDY), size, and growth opportunities (GO) as determinants. Goel, Chadha, and Sharma (2015) report that the impact of financial leverage on operating liquidity is significant in Indian machinery firms.…”

Section: Determinants' Relationship On Financial Leveragementioning

confidence: 99%

“…Their sample data consist of 170,013 observations. Onofrei, Tudose, Durdureanu, and Anton (2015) investigate the determinants for small enterprises employing debt ratio (DR) as the dependent variable and profitability (PFT), tangibility, liquidity (LQDY), size, and growth opportunities (GO) as determinants. They find that leverage is negatively related to PFT, LQDY, and tangibility.…”

Section: Determinants' Relationship On Financial Leveragementioning

confidence: 99%

Effect of determinants on financial leverage in Indian steel industry: A study on capital structure

Dakua

2018

Int. J Fin Econ

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Because India is neither a developed country nor its steel companies are financially self‐sufficient, they are bound to depend on the external capital, resulting the decision to be taken on the leverage ratio as even more crucial. India being the top exporter of iron ores has the potential to be counted as one of the top exporters of steel if the steel companies follow optimal capital structure. Thus, the leverage ratio needs thorough investigation in order to decide the optimal capital structure. Although there have been some attempts, they are not extensive. The objective of this study is to empirically investigate the present capital structure of Indian steel industry from years 2010 until 2017 and the determinants of capital structure and how these determinants correlate with financial leverage. The research objectives are (1) to identify the significant determinants that affect the capital structure and (2) to conduct an extensive and empirical research in order to estimate the correlations of the determinants with the financial leverage. Seven key determinants have been found: They are profitability, asset structure, size, growth opportunities, non‐debt tax shield, liquidity, and risk. The profitability is found to be highly correlated with the debt ratio as was expected and reported in previous studies. The correlations among the determinants such as asset structure, size, and non‐debt tax shield are statistically significant. Profitability and liquidity carry positive relationship with debt ratio, although there is a negative relationship between debt ratio and asset structure.

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“…Several previous studies also provide clues that debt policy was such a factor influencing the relationship between the two variables. Desmintari and Yetty (2016), Hermuningsih (2013), Murtiningtyas (2012), Onofrei, Tudose, Durdureanu, and Anton (2015) highlighted that profitability had a significant influence on debt policy with a negative relationship. Researches by Bahreini, Baghbani, and Bahreini (2012); Margaretha and Rizki (2010) explained that a high debt ratio would lower the stock prices.…”

Section: Introductionmentioning

confidence: 99%

The Mediating Role of Debt and Dividend Policy on the Effect Profitability Toward Stock Price

Akhmadi

Nurohman

Robiyanto

2021

jmk

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This study aimed to obtain an empirical explanation of the role of debt policy and dividend policy as variables mediating the influence of profitability on stock prices. This study used six mining companies listed on the Indonesia Stock Exchange (IDX) during the period of 2012–2016 as samples, hence there were 30 observational data. The sampling technique in this study was purposive sampling. This study found that profitability had a positive effect on stock prices, but the increasing profitability would not necessarily reduce the debt policy. The increasing profitability did not significantly increase the dividend policy, however, increasing dividend policy would increase the stock prices. The results also proved that debt and dividend policy did not mediate the influence of return on equity on the stock prices.

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Determinant Factors of Firm Leverage: An Empirical Analysis at Iasi County Level

Cited by 39 publications

References 15 publications

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Effect of determinants on financial leverage in Indian steel industry: A study on capital structure

The Mediating Role of Debt and Dividend Policy on the Effect Profitability Toward Stock Price

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