ANALYZING THE LEVERAGE EFFECT BY MEANS OF REGRESSION FOR COMPANIES LISTED AT THE BUCHAREST STOCK EXCHANGE – BSE EXCHANGE SEGMENT
Andrei Stanculescu () and
Petre Brezeanu ()
Theoretical and Applied Economics, 2011, vol. 5(558)(supplement), issue 5(558)(supplement), 331-335
The financial theory admits that levered firms record a value surplus compared to unlevered firms, at least because of the tax savings, related to interest. However, incurred debt, especially the long term debt, has a more consistent influence on performance, as stated by the Modigliani-Miller model. To this respect, the paper proposes the empirical testing of this model, using financial-accounting data of firms listed on the Romanian capital market. In particular, the statistical significance of the leverage effect will be analyzed, on a sample of companies listed on the Bucharest Stock Exchange, from the BSE exchange segment. This study is an extension of our previous research concerns.
Keywords: leverage effect; financial lever; financial return; regression; capital market. (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:5(558)(supplement):y:2011:i:5(558)(supplement):p:331-335
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