Leverage Structure Dynamics and Firm Value-Reference-Cited by-同舟云学术

Leverage Structure Dynamics and Firm Value

Published:2022-09-01 Issue:1 Volume:13 Page:1-18
ISSN:1947-9638
Container-title:International Journal of Asian Business and Information Management
language:ng
Short-container-title:

Author:

Uddin Mohammad Nazim¹,Khan Mohammed Shamim Uddin²,Hosen Mosharrof³^ORCID,Chowdhury Md. Shahnur Azad¹

Affiliation:

1. International Islamic University, Chittagong, Bangladesh

2. University of Chittagong, Bangladesh

3. UCSI University, Malaysia

Abstract

The paper aims to examine the impact of leverage structure dynamics on firm value in Bangladesh. To this end, the panel techniques (GMM and PCSE) were used to control for serial correlation, heteroskedasticity, and cross-sectional difficulties in the panel data set. The paper found that leverage structure influences firm value. The result also supports the trade-off theory, which asserts that tax savings on interest expenses result in a lower total cost of capital and ultimately upturn firm value. Lastly, the paper highlights the significance of endogenous variables such as liquidity, profitability, tangibility, and tax rate on firm value in Bangladesh.

Publisher

IGI Global

Subject

Management of Technology and Innovation,Strategy and Management,Computer Science Applications,Cultural Studies,Business and International Management

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