The Impact of Leverage on Firm Growth. Empirical Evidence from Romanian Listed Firms-Reference-Cited by-同舟云学术

The Impact of Leverage on Firm Growth. Empirical Evidence from Romanian Listed Firms

Published:2016-12-01 Issue:2 Volume:9 Page:147-158
ISSN:2068-7249
Container-title:Review of Economic and Business Studies
language:en
Short-container-title:

Author:

Anton Sorin Gabriel¹

Affiliation:

1. Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration, Iaşi, Romania

Abstract

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.

Publisher

Editura Universitatii Alexandru Ioan Cuza din Iasi

Reference26 articles.

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4. 4. Brendea, G., Financing Behavior of Romanian Listed Firms in Adjusting to the Target Capital Structure, Finance a úvěr-Czech Journal of Economics and Finance, 64, 2014, no. 4, pp. 312-329.

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