کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
1004200 | 937751 | 2008 | 16 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: The relative influence of competitive intensity and business strategy on the relationship between financial leverage and performance The relative influence of competitive intensity and business strategy on the relationship between financial leverage and performance](/preview/png/1004200.png)
This study empirically investigates the effects of competitive intensity and business strategy on the relationship between financial leverage and the performance of firms. Based on a sample of US manufacturing firms, this study confirms the hypothesis that the cost of debt is higher for product differentiation firms than cost leadership firms. Furthermore, the results indicate that competitive intensity has a negative effect on the leverage-performance relationship, suggesting that competition acts as a substitute for debt in limiting manager's opportunistic behavior. These findings reinforce the need to consider moderating factors such as strategic choice and the environment in which a firm operates when investigating the effects of leverage on performance.
Journal: The British Accounting Review - Volume 40, Issue 1, March 2008, Pages 71–86