Financial Leverage

This paper investigates determinants of pricing of new high yield bond offerings of shipping companies. New high yield bond offerings issued by shipping companies in the US market, during the period 1993–1998, are used in the investigation. The empirical results suggest that credit rating is the major determinant of the price spread of the bond offerings. Financial leverage and shipping market conditions also account for a significant part of the price variability.

O papel da proibição da assistência financeira - previsto no n.o 1 do art. 322.o do Código das Sociedades Comerciais - no actual paradigma das transacções societárias caracteriza-se, entre nós, enquanto hostil às intrincadas operações que envolvem a alavancagem financeira como meio para atingir o fim - como o LBO, por exemplo. Neste sentido, face ao impacto da Directiva 2006/68/CE, do Parlamento Europeu e do Conselho, de 6 de Setembro de 2006, interpreta-se a inerte acção do legislador português face àquele preceito enquanto um restringimento extrapolada ao dinamismo que o mercado de capitais necessita. Criticamos, por isso, a corrente perspectiva em relação à proibição da assistência financeira.

The financial assistance prohibiton - established by the no. 1 of the 322nd article of Código das Sociedades Comerciais - current role on the societary transactions paradigm is characterized, in our system, as hostile to the complex operations which envolve financial leverage as means to reach the end - such as the LBO, for example. Thus, given the impact provided by the Directive 2006/68/EC of the European Parliament and of the council of 6 September 2006, we may interpret the Portuguese law-maker inaction as an extrapolated restrainment to the demands of the dynamic capital market. Therefore, we criticize the current perspective towards the financial assistance prohibiton

Kapital strukturu qərarları şirkətlərin maliyyələşmə faktorlarının müəyyən edilməsində əhəmiyyətli rol oynayır. Belə ki, bu göstərici həm səhmdarlar həm də menecerlər üçün gələcək perspektivlər və qarşıya qoyduğu məqsədlər üçün cari vəziyyətə görə  görüləcək işlərin proqnozlaşdırılmasında mühüm rola malikdir.  Azərbaycanda fəaliyyət göstərən şirkətlərin kapital strukturu ilə bağlı aparılmış bu tədqiqatda leverec əmsalı ilə şirkətin gəlirliliyi arasınakı əlaqə müəyyən edilməyə çalışılmışdır. Digər maliyyə sahələrindəki dəyişkənlərlə olan yaxın münasibətindən dolayı, kapital strukturu  bir şirkətin varlıqlarını maliyyələşdirərkən istifadə etdiyi borc və kapital birləşməsini əhatə etməkdədir. 
Tədqiqat zamanı kapital strukturu ilə bağlı nəzəriyyələri və leverec ilə gəlirlilik arasındakı əlaqə audit olunmuş maliyyə hesabatlarına əsasən  Azərbaycanda fəaliyyət göstərən şirkətlərdə 2015-2017-ci , banklarda isə 2014-2017-ci illər üzərinə analiz edilmişdir. Şirkətlərdə levereci ölçmək üçün  başqa bir leverec əmsalı olan asılı dəyişən kimi borcun kapitala nisbəti , əsas dəyişən kimi isə gəlirliliyi ölçmək üçün isə mənfəət marjası əmsalından istifadə edilib, banklarda isə  uyğun olaraq leverec və kapital gəlirliliyi əmsallarından istifadə edilmişdir. Asılı dəyişən zamanı istifadə etdiyim leverec əmsallarına bankların hesabatının açıqlama bölməsindəki qısa və uzunmüddətli borclar götürülmüş və istifadə olunmuşdur.  Kapital strukturunun gəlirliliyə təsiri panel metodu vasitəsi ilə analiz edilmiş və alınan nəticəyə görə asılı dəyişənlər (qısa müddətli və uzun müddətli borclar)  ilə gəlir arasında əlaqənin olduğu müəyyən edilmiş və bu əlaqəyə  görə şirkətlərdə leverec artması zamanı gəlirin azalması, banklarda isə bunun əksinin müşahidə olunduğunu görürük.

The current study aimed to investigate the impact of several factors i.e. profitability, tangibility, size, growth, financial risk, liquidity, tax shield on firm’s financial leverage. The data was collected for a panel of 83 companies from 6 high performing sectors of Pakistan stock exchange from 2006 to 2016. The results of panel data analysis were compared for random effect, fixed effect and pooled regression models. The findings revealed that Profitability, Tangibility, Firm Size, Liquidity, Tax Shield and Tobin’s Q had a significant role in leverage decision of the sample firms while financial risk, business risk and growth were found to be insignificant. The fixed effect model was found to be more appropriate to explain the relationships. The implications of the results were also mentioned

In the quest to optimize their objective, which hinges primarily on quantifiable performance, financial managers have adopted
various capital structures as a means to that goal. A firm can finance its investment by debt and/or equity. The use of fixedcharged
funds, such as debt and preference capital along with the owner’s equity in the capital structure is described as
financial leverage or gearing. The general objective was to examine the effect of financial leverage on financial performance
of supermarkets in Kenya. To strengthen the conceptual framework the researcher used theories such as the trade-off theory
and pecking order theory. The study used primary data which was collected through use of questionnaires with respondents at
the supermarket chain. The sample size was 255. A modified Likert scale questionnaire was developed divided into three parts.
A pilot study was carried out to refine the instrument. The quality and consistency of the study will be further assessed using
Cronbach's alpha. Data analysis was performed on a PC computer using Statistical Package for Social Science (SPSS Version
23) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression,
correlation and the information generated will be presented in form of graphs, charts and tables. On cost of finance the study
findings established that cost of loans was high as well as the cost of obtaining goods on credit terms. On the objective
capitalization, the study findings established that supermarkets use a mixture of financing options such as debt and equity. The
study results further revealed that capital structure affects financial performance of supermarkets. On interest rate, the study
findings established that despite capping of the interest rates, interest rates charged on loans affects financial performance of
supermarkets. On debt ratio the study observed that though there is a rich mix of debt ratio, the study concluded that debt ratio
affects financial performance of supermarkets in Kenya. On cost of financing, the study conclude that cost of financing is high
both on debt and dividends and therefore it affects financial performance of supermarkets in Kenya. On Capitalization, the
study established that there was a rich mix of capitalization of both debt and equity. Therefore, the study concluded that a
highly levered firm affects financial performance of supermarkets in Kenya. On interest rate, the study established that interest
rates affects financial performance of supermarkets because it reduces operational liquidity. The study recommended; that
supermarkets should operate with a minimum threshold of debt ratio; that supermarket should have an internal source of
financing to reduce on cost of financing; that supermarkets should provide capital through equity and retained earnings to
leverage on cost of financing and payments of dividends; that if possible not to borrow cash from commercial banks because
of interest rates and rather obtain goods on credit and pay on time to avoid paying interest accrued.

Marketing of agricultural products especially tomato has been a vocation for most women in Ghana, but little attention has been given to the marketing efficiency of tomato. The study analysed the efficiency of marketing system of tomatoes in Pwalugu in the Upper East Region of Ghana. The study depended mainly on primary data collected through a semi-structured interview with sixty-four respondents involved in the tomato marketing chain. Deconstructed Marketing Margins, Gini Coefficient, Returns on Capital Employed and the ...

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. Abstract Purpose-The purpose of this paper is to examine the factors affecting profitability in Malaysian-listed companies. It has been argued that profitability is the main pillar for any company to survive in the long run. Although profitability is the primary goal of all business ventures, scant attention has been paid to the factors that affect profitability in developing countries. This study investigates the factors affecting profitability in Malaysian-listed companies. Design/methodology/approach-This research is based on five independent variables that were empirically examined for their relationship with profitability. These variables are: firm size (as measured by total sales), working capital (WC), company efficiency (assets turnover ratio), liquidity (current ratio) and leverage (debt equity ratio and leverage ratio). Data of 120 companies listed on Bursa Malaysia covering the period from 2012 to 2014 were extracted from companies' annual reports. Pooled ordinary least squares regression and fixed-effects were used to analyze the data. Findings-The findings show a strong positive relationship between firm size (total sales), WC, company efficiency (assets turnover ratio) and profitability. The results also show a negative relationship between both debt equity ratio and leverage ratio and profitability. Liquidity (current ratio) has no significant relationship with profitability. Research limitations/implications-Due to the time limitation, the data includes only 120 companies listed in bursa Malaysia and covers the period from 2012 to 2014. Practical implications-These results benefit internal users (such as mangers, shareholders and employees). They can realize the determinants of enhancing the profitability of their company after the depreciation of the Malaysian currency and therefore concentrate more on the factors that enhance their companies' profitability. On the other side, other external users (such as investors, creditors, new established companies, tax authority) also may get advantages of these results. It is clear that those users concern about the profitability of companies and the determinants of their profitability after the currency's depreciation. Originality/value-This study differs than previous studies in many ways: first, it focuses on non-financial listed companies in Malaysia. Previous studies have concentrated on companies in the financial sector, such as banking and financial institutions or on industrial organizations. Second, this study analyzes the data in companies' annual reports for a three-year period from 2012 to 2014. During this period, the economy in Malaysia was fluctuating due to currency depreciation. Third, the study used both return on equity and earnings per share as indicators of profitability. Fourth, the results of the study provide empirical evidence that large size firms with efficiently managed assets can improve operating income and ultimately enhance profitability. Last but not least, this study applies the resource-based theory and the trade-off theory.

This paper investigates the determinants of internet environmental disclosure (IED) amongst Malaysian listed companies. Ten variables have been tested using data collected from 170 Malaysian listed company websites, namely, dominant personalities in the audit committee, chairman of audit and nomination committees, dominant personalities in the audit and nomination committees, internationality, leverage, foreign shareholders, level of technology, firm age, number of shareholders, and listing status. It was found that internationality, foreign shareholders, level of technology, firm age, number of shareholders, and listing status are significantly affected by the level of IED. However, dominant personalities in the audit committee, chairman of audit and nomination committees, dominant personalities in the audit and nomination committees, and leverage did not show a significant relationship with the level of IED in Malaysia. The study provided some evidence to support signaling theory, shareholder accountability theory, and cost and benefit hypothesis in relation to internet disclosure.

The research based on determining the determinants of the capital structure decisions in Tanzanian context. A researcher found out on how Tanzanian non-financial listed companies’ characteristics relate to their financial leverages and on how choose and adjust their strategic financing mix. The empirical research was focused predominantly on validity tests of the three theories on capital structures, the static trade-off theory, the pecking order theory (information asymmetry theory), and agency cost theory. The research was involved eight of the non-financial companies listed in Dar es Salaam Stock Exchange (DSE) by 10.10.2010.

The determinants of capital structure were assessed through the dependent variable that is financial leverage, which is the ratio of total debt to total assets. The total debt includes both short and long-term interest bearing debt. Moreover, the independent variables (company’s characteristics) include company size, profitability, growth rate, liquidity, assets tangibility and dividend payout.

The research based on secondary data. The main source of data was the Dar es Salaam Stock Exchange (DSE). The population of the research was all Tanzanian non-financial companies listed at DSE. The financial statements were extracted to obtain the relevant information. The websites of all Tanzanian non-financial companies sampled were visited and available financial statements were downloaded from them. The multiple regressions model was used to test the theoretical relationship between the financial leverage and characteristics of the company. The MINITAB 15 English Computer Software was used to run the regression model. The research found that the profitability and assets tangibility  are the two key determinants of the capital structure decisions in Tanzania. Company size and liquidity are suggestive determinants. It is recommended that, Tanzanian companies should make decisions on their capital structure by considering the influence of their individual characteristics in order to configure an optimal capital structure with no heavy burden of debts or high costs of paying shareholders, and internal financing should be preferred to others but with care of saving the shareholders’ interest.

Tujuan dari penelitian ini adalah untuk mengetahui pengaruh financial distress, profitabilitas, leverage, likuiditas dan ukuran perusahaan pada opini audit going concern. Penelitian ini dilakukan pada Bursa Efek Indonesia (BEI) dengan melakukan akses pada situs www.idx.co.id. Populasi dalam penelitian ini adalah seluruh perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) periode 2012-2016. Jumlah perusahaan manufaktur yang dijadikan sampel dalam penelitian ini adalah 78 perusahaan dengan pengamatan selama 6 tahun. Berdasarkan metode purposive sampling, total sampel penelitian adalah 390 sampel. Pengujian hipotesis dalam penelitian ini menggunakan analisis regresi logistik. Hasil Financial Distress berpengaruh negatif pada opini audit going concern, leverage berpengaruh negatif terhadap opini audit going concern, sedangkan profitabilitas, likuiditas dan ukuran perusahaan  tidak berpengaruh signifikan terhadap opini audit going concern.

The purpose of this paper is to examine the factors affecting profitability in Malaysian-listed companies. It has been argued that profitability is the main pillar for any company to survive in the long run. Although profitability is the primary goal of all business ventures, scant attention has been paid to the factors that affect profitability in developing countries. This study investigates the factors affecting profitability in Malaysian-listed companies. This research is based on five independent variables that were empirically examined for their relationship with profitability. These variables are: firm size (as measured by total sales), working capital (WC), company efficiency (assets turnover ratio), liquidity (current ratio) and leverage (debt equity ratio and leverage ratio). Data of 120 companies listed on Bursa Malaysia covering the period from 2012 to 2014 were extracted from companies' annual reports. During this period, the economy in Malaysia was fluctuating due to currency depreciation. Third, the study used both return on equity and earnings per share as indicators of profitability Pooled ordinary least squares regression and fixed-effects were used to analyze the data. The findings show a strong positive relationship between firm size (total sales), WC, company efficiency (assets turnover ratio) and profitability. The results also show a negative relationship between both debt equity ratio and leverage ratio and profitability. Liquidity (current ratio) has no significant relationship with profitability. These results benefit internal users (such as mangers, shareholders and employees). They can realize the determinants of enhancing the profitability of their company after the depreciation of the Malaysian currency and therefore concentrate more on the factors that enhance their companies' profitability. On the other side, other external users (such as investors, creditors, new established companies, tax authority) also may get advantages of these results. It is clear that those users concern about the profitability of companies and the determinants of their profitability after the currency's depreciation.

The objective of this research is to determine the impact of profitability, growth opportunities, risk, liquidity, firm size, leverage, taxation and audit type on dividend payout in order to increase understanding of the determinants of dividend payout within Pakistani corporate environment. To meet the objective of this research, five year financial data from 2009-2014 of listed pharmaceutical companies is used and analyzed to determine the impact of selected variables on dividend payout. Correlation analysis and backward multiple linear regression is applied on the data to determine the association between variables and the impact of selected independent variables on dividend payout. Findings reveal that audit type, liquidity, growth opportunities & profitability are the key determinants of dividend payout of pharmaceutical companies of PSX. 31.90% variation in dividend payout is caused by these variables. Other independent variables including taxation, risk, firm size and leverage insignificantly influence dividend payout decisions of pharmaceutical companies of PSX.

Finance decision is one of the important decisions of financial management in any Enterprise. Capital structure refers to the combination of debt and equity. The financial manger has to strike a balance between various sources of funds so as to maximise return of an Enterprise without affecting risk composition in the business. An optimal capital structure is very much essential to maximise the owner’s wealth of any Enterprise. In this paper, an attempt is made to analyse the capital structure in P. L. Plast Private Limited. P. L. Plast Private Limited is a Micro Enterprise located in Nellore district of Andhra Pradesh state in India. The Enterprise is manufacturing agricultural pipes. The Micro Enterprise has an annual turnover of Rs. 113.1 Lakhs as per 2015-16 annual accounts. The total assets of the company are Rs.164.3 Lakhs. In this paper composition of capital structure in the enterprise for a period of ten years is analysed. Leverage analysis was also done. Debt-Equity ratio, Proprietary Ratio, Solvency Ratio, Fixed Assets to Net worth Ratio, Fixed Assets Ratio, Current Assets to Proprietary Ratio and Interest Coverage Ratio are calculated for the study period. Chi-square test is used for testing Hypotheses.

هدفت الدراسة إلى بيان أثر تطبيق معيار الإبلاغ المالي الدولي رقم 9 على جودة الأرباح في البنوك المدرجة  في سوق عمان المالي ، مع بيان هذا الأثر على القوائم المالية بعد تطبيق المعيار الدولي للتقرير المالي 9 البنوك المدرجة  في سوق عمان المالي، في ظل العوامل التي يمكن أن تؤثر في جودة الأرباح عند وجود الرافعة المالية واختلافات في حجم البنك على الأرباح في نهاية العام، ولتحقيق أهداف الدراسة تم تحديد ثلاثة أبعاد للمتغير المستقل متمثلة بمخاطر السيولة، وإدارة الائتمان، ومخصصات الديون المشكوك فيها، مع أبعاد للمتغير التابع التي تمثلت بإدارة الأرباح، واستمرارية الأرباح، وتمهيد الدخل، مع الأخذ بعين الاعتبار المتغيرات المعدل الذي تمثل في الرافعة المالية وحجم البنك.

This dissertation discusses the influence of shadow banking on financial markets. Global analysis of shadow banking systems requires national data and measurements, it needs to be enhanced and enriched for each jurisdiction to achieve a clear overview. The Turkish case was selected as a noteworthy example, to find out how shadow banking connections work, or do not work, even in a strictly separated regulatory framework. Excessive leverage of the financial system was at the very core centre of the discussions on reasons for the recent financial crisis. It is accused of exacerbating asset price booms and exacerbating the systemic risks. Leverage pro-cyclicality of securities brokers and dealers may provide a window on risk connections which may arise from the shadow banking system. The question that needs to be answered is whether leverage is pro-cyclical or not. The results show that it is pro-cyclical. Eventually, appropriate counter-cyclical regulatory responses are outlined for Turkish securities brokers and dealers as one of the main areas of macro-prudential policies.

“Moody’s Credit Ratings and The Subprime Mortgage Meltdown” reviews the 2008 financial crisis and the impact to homeowners by investment firms, lenders and other market and nonmarket stakeholders.  Moody’s CEO, Raymond McDaniel, created an environment within the organization that put greater value on increasing market share, improving shareholders return on investment and being primarily driven by bottom-line results.  Moody’s business model started changing in 1975 as a result of the Securities and Exchange Commission (SEC) designating Moody’s, S&P and Fitch as Nationally Recognized Statistical Rating Organizations (NRSRO’s), giving each organization a quasi-regulatory role.  As a result, Moody’s and the other two organizations started charging bond issuers to rate their products.  This created a conflict of interest for Moody’s and the other two rating agencies; bond issuers started to shop for the best ratings from the three agencies.  The rating agencies, in turn, failed to meet their obligation to provide independent, objective ratings on the financial instruments they were paid to rate (Lawrence & Weber, 2011, pp. 454-456). 
    This failure to provide independent, objective ratings was evidently clear during the housing bubble that occurred during the past decade.  Structured finance products like residential mortgage-backed securities (RMBS) became very popular as they appeared to supersede poor returns in the markets and the Federal Reserve Bank’s low interest rate policies.  The RMBS’ were highly sought after because of their higher than normal returns. These instruments consisted of bundled home loans purchased by investment banks, then the creation of a pool of home loans that appeared to be bond equity.  The problem with RMBS’ was that there was little transparency and they required sophisticated systems to securitize (Lawrence & Weber, 2011, pp. 456-462).
    The popularity of the RMBS’, public policy that promoted home ownership, and home financing products that allowed for questionable loans created an atmosphere that lacked oversight.  Moody’s showed little restraint in this environment and jumped right into the housing bubble market.  In the five years, leading up to 2006, structured finance instruments drove almost 40% of their revenues, and resulted in leading operating margin performance amongst companies in the S&P 500 for five straight years (Lawrence & Weber, 2011, p. 456).  Because of Moody’s financial success, CEO Raymond McDaniel, enjoyed a salary of $7.4 million.  Under his leadership, the organization was primarily applying the ownership theory versus the stakeholder theory (Lawrence & Weber, 2011, p. 6).  Moody’s may not have broken the law, but they clearly did not reflect the ethics and leadership the public needed from them during the period leading up to the financial crisis.

Purpose: The purpose of this paper is to show how some of the assumptions about the current financial crisis are wrong because they misunderstand what takes place in the mortgage market.
Design/methodology/approach: The paper discusses four wrong assumptions: one related to regulation, one to leveraging, one to subprime lending and one to predatory lending. It briefly discusses some policy implications.
Findings: (1) The role of the state in the mortgage market is more complex than suggested by those who blame the state for not doing anything. (2) The concept of leveraging can explain, at least in part, why the losses in financial markets are bigger than the losses in the housing market. (3) Many subprime loans were sold to prime borrowers. (4) Subprime lending was not designed to increase homeownership rates, but to fuel profits by exploiting vulnerable borrowers.
Practical implications (if applicable): It is too easy to argue that everyone made mistakes; most borrowers cannot be blamed for being sold risky, overpriced loans. A rescue plan is needed for defaulting borrowers and those already in foreclosure.
Originality/value: This paper does not present new research, but brings together research that demonstrates that the roots of the crisis in the mortgage market are in many ways different from what is suggested by professionals and journalists alike.
Keywords: Financial crisis, Credit crunch, Mortgage market, Securitization, Subprime lending, Predatory lending, Regulation

The Indian textile industry has a significant presence in the economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, 9 percent of excise collections, and 18 percent of employment in the industrial sector, nearly 20 percent to the countries total export earning and 4 percent to the Gross Domestic Product. The objective of this paper is to understand and analyze the leverage positions of Textile Industries in India and to examine the impact if leverage on EPS of selected Textile Companies. The study reveals that overall leverage of Lakshmi Mills Co. Ltd is maximum indicating higher profits and also ensuring that any small change will lead to more reflection. the mean value of EPS for  Raymond Ltd.  is high as compared to the other five companies.Visaka Industries Ltd shows an average performance during the study period.
Key words: leverage, EPS, GDP, MSP, UCTA etc.

The main objective of the study is to recognize the major factors influencing the capital structure of the textile firms and to identify the association among them from the context of Bangladesh. The researchers reviewed different conditional theories of capital structure before identifying the determinants of the textile firms. For this purpose, panel data for A-category listed textile companies of the Dhaka Stock Exchange were selected. The study developed multiple regression models for the period 2008 to 2017. Key-independent variables include firm profitability, tangibility, growth, age, liquidity and Size. Leverage ratio was used as the dependent variable. The study explored that profitability; firm size and liquidity have significant positive relationship with the debt ratio, which is consistent with the Trade-off theory. On the other hand, tangibility, growth rate and age are not significantly related with the said ratio. The findings of this study will help financial managers to make the right decisions on fund borrowing and equity financing. Then they can use borrowing in a proper way to support the market value of their companies. Contribution/Originality: This study is one of the very few studies which have investigated the direct relationship of determinant factors with the debt maturity of the listed textile companies in the stock exchange by using panel data analysis.

Leverage analysis is an important tool in the hands of business firm. Through leverage analysis firm can analyze the impact of fixed cost expenses on return to equity share holders during fluctuating revenue. This is a case study measuring the impact of fixed cost expenses on return to equity share holders. Data is retrived from the financial statements of the concern for three years and accordingly the current status of operating leverage, financial leverage and combined leverage is analyzed and it's impact on return to equity is concluded. During the period of study, operating leverage, financial leverage and combined leverage is not favorable due to decline in revenue.

The financial manger has to strike a balance between various sources of funds so as to maximize return of an Enterprise without affecting risk composition in the business. An optimal capital structure is very much essential to maximize the owner's wealth of any Enterprise. In this paper, an attempt is made to analyze the capital structure in Power Plant Engineering Works. Power Plant Engineering Works is a reputed Indian electric transformer manufacturer company catering to people in Visakhapatnam, Kakinada, Rajahmundry, Srikakulam and Vizianagaram regions of Andhra Pradesh. It is a Micro and Partnership enterprise. Its institutional clients include big giants like VCTTL, CPWD and BHEL. In this paper composition of capital structure in the enterprise for a period of ten years is analyzed. Leverage analysis was also done. Debt-Equity ratio, Proprietary Ratio, Solvency Ratio, Fixed Assets to Net worth Ratio, Fixed Assets Ratio, Current Assets to Proprietary Ratio and Interest Coverage Ratio are calculated for the study period. Chi-square test is used for testing Hypotheses.

This research is an attempt to establish a stochastic relationship between Financial leverage and Profitability of cement sector operating in Pakistan. For this purpose 18 cement manufacturers out of 21 are incorporated in the study and six years annual data from 2005 to 2010 regarding financial leverage and profitability of the said firms were taken into consideration. The sample size for eighteen firms for six years consists of 108 observations. An Ordinary Least Square model is applied on the data to establish a causal relationship between the variables. The study finds that financial leverage has a statistically significant inverse impact on profitability at 99% confidence interval.

The present study investigates whether listed Brazilian companies between 1995 and 2008 coordinated cash and debt policies for effects of hedging against underinvestment under conditions of financial constraint. The results indicate the absence of a hedging component when simultaneously using cash and debt policies in constrained firms. For firms with financial constraints there was positive sensitivity of cash to cash flow and negative sensitivity of debt to cash flow, regardless of the need for hedging. The unconstrained firms did not present statistically significant sensitivity of cash to cash flow, but presented negative sensitivity of debt to cash flow, results that were also independent of the need for hedging. These findings run counter to those of Acharya, Almeida & Campello (2007) in the American market, where cash and negative debt were found to play different roles in intertemporal optimization of investments among constrained firms, according to the need for hedging.

Tujuan penelitian ini adalah menemukan bukti empms melalui serangkaian pengujian untuk menguji pengaruh faktor-faktor yang mempengaruhi opini audit going concern. Penelitian ini membahas tentang variabel terkait yang mempengaruhi opini audit going concern, dimana ruang lingkup dibatasi pada variabel kualitas audit, financial distress perusahaan, ukuran perusahaan, pertumbuhan perusahaan, opini audit tahun sebelumnya, likuiditas, leverage, profitabilitas, dan arus kas. Penelitian ini dilakukan pada perusahaan Properti dan Manufaktur yang terdaftar di Bursa Efek Indonesia dengan peri ode 2009 -2015. Dengan menggunakan sampel yang relatif baru diharapkan hasil penelitian ini dapat lebih relevan untuk memahami kondisi yang actual di Indonesia. Perusahaan Properti dan Manufaktur yang terdaftar di Bursa Efek Indonesia sebanyak 103 perusahaan. Dalam penelitian ini dilakukan dengan menggunakan purposive sampling method. Hasil pengujian hipotesis menu~Dukkan bahwa kualitas audit, financial d...

In this paper, I study the role of the leverage ratio and its impact on investing in tangible and intangible goods. The results confirm the hypotheses outlined in the introduction. Specifically, the results show that when accounting for differences in the leverage ratio between firms, investment is cyclical. However, when looking only at firms with low leverages, intangible investing becomes countercyclical, which agrees with previous literature. Moreover, during downturns in the economy, firms with lower leverages tend to invest more than firms with higher leverages. Finally, the results argue for the existence of financial frictions between investing in tangibles and intangibles.