Leverage and firm performance: Empirical evidence from Indian food processing industry

Leverage and firm performance: Empirical evidence from Indian food processing industry

The current study examines the association between financial performance and leverage for 56 food processing firms listed in BSE over the period 2000-2018 using pooled OLS, fixed effects, and random effects models. The results indicate that leverage was significantly and positively associated with t...

Full description

Bibliographic Details
Main Authors: Sasikanta Tripathy, Abdul Rahman Shaik
Format: Article
Language:English
Published: Growing Science 2019-12-01
Series:Management Science Letters
Subjects:
restructuring
leverage
firm performance
panel data model
pooled ols
fixed effect
random effect
investment theories
Online Access:http://www.growingscience.com/msl/Vol10/msl_2019_352.pdf
Description
Summary:The current study examines the association between financial performance and leverage for 56 food processing firms listed in BSE over the period 2000-2018 using pooled OLS, fixed effects, and random effects models. The results indicate that leverage was significantly and positively associated with the firm performance. The results obtained are thus robust across the estimation methods. The pecking order theory and the static trade-off theory, both seem to explain Indian food processing firms’ decisions among the alternative theories of capital structure.
ISSN:1923-9335
1923-9343

Similar Items