THE IMPACT OF LEVERAGE ON FIRM GROWTH. EMPIRICAL EVIDENCE FROM ROMANIAN LISTED FIRMS Cover Image

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 Anton
Subject(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.

  • Issue Year: 2016
  • Issue No: 18
  • Page Range: 147-158
  • Page Count: 12
  • Language: English
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