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...
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Growing Science
2019-12-01
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| Series: | Management Science Letters |
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| Online Access: | http://www.growingscience.com/msl/Vol10/msl_2019_352.pdf |
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doaj-a4f39c36db164a429b3deab890c051242020-11-24T21:53:39ZengGrowing ScienceManagement Science Letters1923-93351923-93432019-12-011061233124010.5267/j.msl.2019.11.035Leverage and firm performance: Empirical evidence from Indian food processing industrySasikanta TripathyAbdul Rahman ShaikThe 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.http://www.growingscience.com/msl/Vol10/msl_2019_352.pdfrestructuringleveragefirm performancepanel data modelpooled olsfixed effectrandom effectinvestment theories |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Sasikanta Tripathy Abdul Rahman Shaik |
| spellingShingle |
Sasikanta Tripathy Abdul Rahman Shaik Leverage and firm performance: Empirical evidence from Indian food processing industry Management Science Letters restructuring leverage firm performance panel data model pooled ols fixed effect random effect investment theories |
| author_facet |
Sasikanta Tripathy Abdul Rahman Shaik |
| author_sort |
Sasikanta Tripathy |
| title |
Leverage and firm performance: Empirical evidence from Indian food processing industry |
| title_short |
Leverage and firm performance: Empirical evidence from Indian food processing industry |
| title_full |
Leverage and firm performance: Empirical evidence from Indian food processing industry |
| title_fullStr |
Leverage and firm performance: Empirical evidence from Indian food processing industry |
| title_full_unstemmed |
Leverage and firm performance: Empirical evidence from Indian food processing industry |
| title_sort |
leverage and firm performance: empirical evidence from indian food processing industry |
| publisher |
Growing Science |
| series |
Management Science Letters |
| issn |
1923-9335 1923-9343 |
| publishDate |
2019-12-01 |
| description |
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. |
| topic |
restructuring leverage firm performance panel data model pooled ols fixed effect random effect investment theories |
| url |
http://www.growingscience.com/msl/Vol10/msl_2019_352.pdf |
| work_keys_str_mv |
AT sasikantatripathy leverageandfirmperformanceempiricalevidencefromindianfoodprocessingindustry AT abdulrahmanshaik leverageandfirmperformanceempiricalevidencefromindianfoodprocessingindustry |
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