کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
960079 929406 2006 38 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Debt financing: Does it boost or hurt firm performance in product markets?
موضوعات مرتبط
علوم انسانی و اجتماعی مدیریت، کسب و کار و حسابداری حسابداری
پیش نمایش صفحه اول مقاله
Debt financing: Does it boost or hurt firm performance in product markets?
چکیده انگلیسی

Previous research seeks to establish whether debt boosts or hurts a firm's product market performance. This paper proposes that both of these outcomes can be observed: debt can boost and hurt performance. I first model a nonmonotonic relation between debt-like finance and competitive conduct. I then empirically examine the within-industry relation between leverage and sales performance using data from 115 industries over 30 years. My tests deal with the endogeneity of debt in a novel fashion: I use creditors’ valuation of assets in liquidation to identify financial leverage. I find that moderate debt taking is associated with relative-to-rival sales gains; high indebtedness, however, leads to product market underperformance.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Financial Economics - Volume 82, Issue 1, October 2006, Pages 135–172
نویسندگان
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