Influence Of Financial Leverage Research Articles

The Influence of Financial Leverage, CSR Activities on Cash Holdings in Iraqi Islamic Banks

The Influence of Financial Leverage, CSR Activities on Cash Holdings in Iraqi Islamic Banks

The Influence of Financial Leverage and Profitability on Tax Evasion: Company Size as A Moderation Variable

The Influence of Financial Leverage and Profitability on Tax Evasion: Company Size as A Moderation Variable

ПРОБЛЕМЫ ФИНАНСОВОЙ УСТОЙЧИВОСТИ РОССИЙСКИХ КОМПАНИЙ В УСЛОВИЯХ ЭКОНОМИЧЕСКОЙ НЕОПРЕДЕЛЕННОСТИ

The most important condition for the functioning of a business is ensuring the sustainable functioning of business entities. In conditions of instability and uncertainty, ensuring the financial stability of Russian organizations is elevated to the level of priority tasks not only at the level of the organization, but also of the state as a whole. The article assesses the current conditions of Russian business in the context of modern problems that aggravate its financial condition. The authors analyze the most significant factors in ensuring the financial stability of Russian companies, study the consequences of an inefficient capital structure, and the influence of financial leverage on the rationality of total capital. Particular attention is paid to the methodology for assessing the financial condition of an enterprise based on standard values of financial stability indicators. It is noted that the established standards do not correspond to modern realities and do not take into account industry specifics, which leads to ineffective management decisions to prevent financial risks.

ANALISIS FAKTOR-FAKTOR YANG MEMENGARUHI CASH HOLDING PERUSAHAAN MANUFAKTUR TAHUN 2017-2020

This research aims to obtain empirical evidence on the influence of financial leverage, net working capital, firm size, profitability, growth opportunity, and capital expenditure on corporate cash holding in the manufacturing industry listed on the Indonesia Stock Exchange (IDX) during the period 2017-2020. This study used purposive sampling methods in sampling and obtained as many as 58 samples of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2017-2020. The study used multiple linear regression analysis. This research conducted data processing using Eviews application version 12 and Microsoft Excel 2019. The results of this study showed that financial leverage, net working capital, and capital expenditure negatively affect cash holding, profitability has a positive effect on cash holding, and firm size and growth opportunity have no effect on cash holding.

Leveridžovana beta - uticaj duga i poreza na dobit na sistematski rizik kompanije i rasprava o pravilnoj algebarskoj jednačini

The increase in the share of debt in the capital structure is accompanied by an increase in the required return on equity because companies are exposed to higher financial risk. The beta coefficient of debt-financed companies differs from the beta coefficient of companies that are financed exclusively with equity. Namely, the beta coefficient, under the influence of financial leverage, tends to increase with the growth of indebtedness, that is the systematic risk measured by the coefficient beta of debt-financed companies is higher than the systematic risk of non-leveraged companies, due to financial risk. Because interest payments on the debt of leveraged companies are excluded as an expense from the tax base, corporate income tax reduces the beta coefficient of a company with debt, compared to the beta coefficient of the same company when income tax is abstracted. The higher the corporate income tax, that will be the lower the beta coefficient of companies that have debt in the capital structure. There are several algebraic equations, by different authors, for the beta coefficient of leveraged companies. The algebraic equation for the beta coefficient of leveraged companies, which is derived in this paper, was obtained using the net operating income approach.

Analisis Financial Leverage dan Asset Growth Terhadap Koefisien Respon Laba

This purpose to analyze and find out how the influence of financial leverage and asset growth in earnings response coefficient. And uses quantitative methods from secondary data sourced from industrial company on the cosmetics & household goods sector in the Indonesian stock exchange period 2018-2020. This study sampel is selected based in on purposive addition certain criteria. Using multiple linear regression analysis performed classical assumption test, hypothesis test and coefficient of determination. The results of the study show that financial leverage has a positive and significant effect on the earnings response coefficient, while the asset growth variable has a positive but not significant effect on the earnings response coefficient. The results of this study prove that if financial leverage is high, then small changes in operating profit will greatly affect returns to shareholders. A large company size will find it easier to innovate by using its assets which will increase company profits. Investors will respond to high corporate profits by increasing the value of the earnings response coefficient.

Influence of Financial Leverage on Financial Sustainabilit: A Case of A Microfinance Institution in Kenya

Microfinance institution plays a crucial role in economic development and financial inclusion. Financial sustainability is the key dimension to microfinance institutions growth. Which further indicate the importance of which Financial sustainability is. Therefore, the present study investigated the effect of financial leverage on MFI financial sustainability. The specific objective was to establish the effect of financial leverage on the financial sustainability of MFIs. The study was guided by agency theory and life-cycle theory. The study adopted an explanatory research design where a panel approach was used as well as the positivist paradigm. The study adopted the census approach method. Panel data was drawn from 30 MFIs for a period between 2010 and 2018 from the mix market database using the data collection schedule. The study used both descriptive and inferential statistics to analyze data with the help of STATA software. Fixed effect model based on Hausman test (X2 = 45.41, p= 0.000 ≤ 0.05). Based on the findings of the study financial leverage ( the study had a positive and significant effect on the financial sustainability of MFIs. The study recommended MFIs managers to engage in the prudent use of financial leverage so that they enhance their overall profitability and boost investor confidence in their strategic decision-making resulting in financial sustainability. The results have an implication to business managers and policymakers given the vital role in service delivery and the challenges hindering the sector from the realization of financial sustainability in the economy.

Influence of Financial Leverage on Financial Sustainability. A Case of a Microfinance Institution in Kenya

Influence of Financial Leverage on Financial Sustainability. A Case of a Microfinance Institution in Kenya

Pengaruh Financial Leverage, Profitabilitas Dan Besaran Penawaran Saham Terhadap Initial Return

This research aimed to give evidence about influence of financial leverage, profitability, and percentage of share which initial return IPO in Indonesia Stock Exchange in the year 2011-2017. Population used in this research is companies that go public on the Indonesia Stock Exchange by taking a sample of firms in 2011-2017, while the sample is 127 companies, with a purposive sampling technique. Type of data used are secondary data. Data collection method used is documentation from www.idx.com and companies website. Analysis tool used is multiple linear regression. The results of this study are (1) financial leverage have significant positive to company’s stock initial return (2) profitability and percentage of share has no effect to the company’s stock initial return.

Effect of financial leverage on firm growth: empirical evidence from listed firms in Amman stock exchange

Past studies have mostly investigated the significance of financial attributes in trade affairs of developed countries, while dismissing such importance among developing nations. As such, this study looked into the influence of financial leverage upon the growth of Jordanian firms. For that purpose, a sample of 91 firms from Jordan had been analyzed via panel data regression method for the period between 2006 and 2015. As a result, the findings portrayed the irrelevance between financial leverage and growth of assets, but a significantly positive correlation with the growth of sales and employment. On top of that, this study revealed that growth of sales and employment had been significantly and positively correlated with firm size. In short, this study dismissed the speculation the constraint Jordanian firms were in, but on the contrary, displayed the ability to gain external financing to ascertain successful progress.

The Effect of Financial Leverage and Capital Expenditure to Cash Holding of Manufacturing Company Listed in Indonesia Stock Exchange

This study aims to examine the effect of financial leverage and capital expenditure on cash holding of manufacturing companies listed on the Indonesia Stock Exchange from 2011 to 2015. In addition, this study also aims to test the extent to which the influence of financial leverage and capital expenditure on cash holding. Type of studyused in this research is hypothesis testing. Samples that are selected using purposive sampling are 105 observations (105 company-years). In accordance with objectives of the study, data are analyzed using standardized multiple regression. The results show that financial leverage has a positive effect on cash holding about 14.1%, while capital expenditures has no affect on cash holding.

CONFIRMATORY FACTOR ANALYSIS INTERNAL DAN EKSTERNAL KEUANGAN, FREE CASH FLOW, DAN RETURN SAHAM PERUSAHAAN MANUFAKTUR GO PUBLIC DI INDONESIA

The negative impact of economic crisis in Asia to internal financial decision included investment decision, financing decision, and dividend decisions. This condition is loser if external factors such as inflation rate, interest rate, and exchange rate are not supported. Negative free cash flow including Economic Value Added and Market Value Added, depreciation of stock return indicate financial distress and reduction of shareholder wealth.The research used of Confirmatory Factor Analysis and the hypotheses are: 1. The influence of Inflation Rate (IR), Interest Rate, and Exchange Rate are significant to External Factor.2. The influence of Return on Equity (ROE), Fixed Asset Utilization (FAU), Capital Intensiveness (CI), Inventory Intensiveness (II), Receivable Intensiveness (RI), Margin Ratio (MR), Asset Profitability Ratio (APR) are significant to Investment Decision.3. The influence of Financial Leverage (FL), Short Term Liquidity (STL) and Cash Position (CP) are significant to Financing Decision.4. The influence of Plowback Ratio (PR) and Return On Fixed Asset are significant to Dividend Decision.5. The influence of Economic Value Added (EVA) and Market Value Added (MVA) are significant to Free cash flow.6. The influence of Price Earning Ratio (PER), Dividend Yield (DY), and Capital Gain Yield (Cap.G) are significant to Stock Return.The results of this research are significant influence to external factors, internal financial decision, free cash flow, and stock return; but inventory and receivable intensiveness, dividend yield are not significantly.

Does the Pecking Order Hypothesis Explain the Dividend Payout Ratios of Firms in the UK?

This study tests the pecking order hypothesis on data of 224 firms in the UK over the period 1993–96 inclusive. Evidence observed supports the prediction of the hypothesis that there is a negative interaction between the long term value of dividend payout ratio and investment. The evidence also indicates that financial leverage has a positive interaction with dividend payout ratio but no significant interaction with investment. While investment has a significant positive influence on financial leverage, financial leverage does not have a significant influence on investment. It is also observed that irrecoverable advance corporation tax (ACT) has a positive, albeit weak, influence on dividend payout ratio and that overseas profit has a negative influence on the ratio. The results of the study agree with the previous evidence with regard to the influence of dividend payout ratio on investment and financial leverage, and the influence of investment on financial leverage. However, the results contradict the previous evidence reported by Baskin (1989) and Allen (1993) about the influence of financial leverage on investment. While the previous studies observed that financial leverage has a positive influence on investment, this study finds that financial leverage does not have a significant influence on investment. The main contributions of the study are that (1) it provides some evidence that there is a negative interaction between dividend payout ratio and investment and a positive interaction between dividend payout ratio and financial leverage, (2) it provides some evidence about the effects of overseas profit and irrecoverable ACT on dividend payout and (3) its results suggest that the recent abolition of the refund of ACT is justified on the ground that it may affect investment and growth in the UK.

RURAL RETAILERS: USING A BANKRUPTCY MODEL TO PREDICT HIGH PROFIT VERSUS LOW PROFIT FIRMS

ABSTRACT Bankruptcy models are used to predict business failure. These models are based on key financial indicators. The same key ratios might serve as anticipatory indicators of business success. Retailers in rural communities from twelve states took part in the study. The model developed by Miller and Miller to predict business failure is based on five key ratios. Our results show the model is a useful tool in predicting financial success (p<.001; 97.65% correct classification using logistical regression). Two of the five ratios were highly significant. Our ratio measures the influence of financial leverage on return on equity. Higher profit firms had higher return on total assets than did low profit firms. This ratio was the single best predictor of business success. Net Sales to Total Assets is also a significant predictor of profit. This ratio affects all major elements of the income statement and the balance. High profit firms in this study had a lower ratio. Generally low Net Sales to Total Assets ...