THE IMPACT OF LEVERAGE ON FIRM GROWTH. EMPIRICAL EVIDENCE FROM ROMANIAN LISTED FIRMS
The aim of the paper is to assess the impact of leverage on firm growth in periods of economic growth and economic uncertainty. We employ a sample of Romanian listed firms over the period 2001-2011 and several alternative measures for firm growth (i.e. sales growth, assets growth, and employment gro...
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| Format: | Article |
| Language: | English |
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Sciendo
2016-12-01
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| Series: | Review of Economic and Business Studies |
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| Online Access: | http://www.rebs.ro/articles/pdfs/232.pdf |
| Summary: | The aim of the paper is to assess the impact of leverage on firm growth in periods of economic growth and economic uncertainty. We employ a sample of Romanian listed firms over the period 2001-2011 and several alternative measures for firm growth (i.e. sales growth, assets growth, and employment growth). The results of fixed effects regression model show that the leverage has a positive effect on firm growth. Furthermore, profitability was found to positively influence the firm growth, while older firms saw a faster increase in assets and sales. Within this particular sample, firm size appears to constrain growth. |
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| ISSN: | 1843-763X 1843-763X |