Abstract
PurposeThe main goal of this study is to analyze how monetary debt effects firm behavior of 167 registered manufacturing companies in G-7 countries.Design/methodology/approachThe sample of the present study is taken from the listed firms in G-7 countries. For the building companies, the yearly financial statements of 2007–2018 have been taken from world stock exchange and Thomson Reuters Data Stream. In this study, regression analysis are directed with panel data over the period of 2007–2018 using ordinary least square summary statistics, correlation matrix and generalized method moments. Data were analyzed by employing E Views and Stata 13 software.FindingsThe significant findings of the current study indicated that fixed assets, tangible assets, taxes, net cash and profitability have positive association with debt level.Research limitations/implicationsThe current work include only registered manufacturing firms in G-7 countries. Moreover, ownership types are not accounted for in this study.Practical implicationsThe current analysis is an empirical investigation of antecedents of debt regarding G-7 countries with up-to-date data. Various regression inquires have been made to design the models using different measures of debt and measure of firm performance indicators. These works will assist G-7 countries firms to know the effects of identified factors on time raising debt level.Originality/valueThe current work has been finalized using genuine data of yearly reports and database. This study incorporated antecedents of debt, which have limited discourse in prior literature. Furthermore, this study explores the connection between debt level and firm performance of G-7 countries.
Highlights
Capital structure is the mixture of debt and the firm’s performance elements used for its capitalization
This study explores the connection between debt level and firm performance of G-7 countries
By using the data of G-7 industry in developed country, we look for answers of the following questions? What are the determinants of capital structure? What are the effects of capital structure enticement on debt level? The main objective of this study is about capital structure companies listed on the G-7 stock exchange
Summary
Capital structure is the mixture of debt and the firm’s performance elements used for its capitalization. The present study inspects the importance of equity structure company performance of G-7 most developed industrial country in the world. Most developed countries are (UK, US, France, Germany, Italy, Canada and Japan) main purpose of G À7 is to solve the international economic and monetary issues. In 1970, the leaders of UK, US, France, West Germany and Japan informally discussed the oil crisis and recession. The president of France, Valery Giscard, invited the leaders of these countries and Italy in 1975 for discussion of further issues about oil on a global level. In 1999, through FSB (financial stability forum) to managing international level monetary problems
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