Financial Leverage and Market Return: Empirical Evidence from US Market Indices.
(2020) BUSN79 20201Department of Business Administration
- Abstract
- This paper is to empirically investigate the relationship between leverage and firm performance if any exists, “what is the direction of the relation?” as well as test the possibility of a non-monotonic relationship. Panel regression analysis is used for this study while using asset tangibility as an instrumental variable. The results reveal that an increase in financial leverage has a negative, statistically significant impact on market return at the 10% level.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9028684
- author
- Agyei, Ernest LU
- supervisor
- organization
- alternative title
- https://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=9017264&fileOId=9017275
- course
- BUSN79 20201
- year
- 2020
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Firm Performance Market return Leverage Debt Overhang theory Irrelevance theory US stock indices Free cash flow theory
- language
- English
- id
- 9028684
- alternative location
- https://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=9017264&fileOId=9017275
- date added to LUP
- 2020-09-09 12:30:49
- date last changed
- 2020-09-09 12:30:49
@misc{9028684,
abstract = {{This paper is to empirically investigate the relationship between leverage and firm performance if any exists, “what is the direction of the relation?” as well as test the possibility of a non-monotonic relationship. Panel regression analysis is used for this study while using asset tangibility as an instrumental variable. The results reveal that an increase in financial leverage has a negative, statistically significant impact on market return at the 10% level.}},
author = {{Agyei, Ernest}},
language = {{eng}},
note = {{Student Paper}},
title = {{Financial Leverage and Market Return: Empirical Evidence from US Market Indices.}},
year = {{2020}},
}