THE IMPACT OF LEVERAGE ON FIRM GROWTH. EMPIRICAL EVIDENCE FROM ROMANIAN LISTED FIRMS
THE IMPACT OF LEVERAGE ON FIRM GROWTH. EMPIRICAL EVIDENCE FROM ROMANIAN LISTED FIRMS
Author(s): Sorin Gabriel AntonSubject(s): Business Economy / Management, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: Firm growth; financial structure; leverage; Romania; listed firms;
Summary/Abstract: 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.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2016
- Issue No: 18
- Page Range: 147-158
- Page Count: 12
- Language: English