Capital structure and firm performance in Australian service sector firms: a panel data analysis

Ahmed, Rafiuddin, and Bhuyan, Rafiqul (2020) Capital structure and firm performance in Australian service sector firms: a panel data analysis. Journal Of Risk And Financial Management, 13 (9). 214.

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Abstract

Using cross-sectional panel data over eleven years (2009-2019), or 1001 firm-year observations, this study examines the relationship between capital structure and firm performance of service sector firms from Australian stock market. Unlike other studies, in this study directional causalities of all performance measures were used to identify the cause of firm performance. The study finds that long-term debt dominates debt choices of Australian service sector companies. Although the finding is to some extent similar to trends in debt financed operations observed in companies in developed and developing countries, the finding is unexpected because the sectoral and institutional borrowing rules and regulations in Australia are different from those in other parts of the world.

Item ID: 64941
Item Type: Article (Research - C1)
ISSN: 1911-8074
Keywords: firm performance, causality tests, leverage, long-term debt, capital structure
Copyright Information: © 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Date Deposited: 04 Nov 2020 07:30
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350103 Financial accounting @ 50%
39 EDUCATION > 3901 Curriculum and pedagogy > 390103 Economics, business and management curriculum and pedagogy @ 50%
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