THE IMPACT OF LEVERAGE ON FIRM GROWTH. EMPIRICAL EVIDENCE FROM ROMANIAN LISTED FIRMS

Sorin Anton ()

Review of Economic and Business Studies, 2016, issue 18, 147-158

Abstract: The aim of the paper is to assess the impact of leverage on firm growth in periods of economic growth and economic uncertainty. We employ a sample of Romanian listed firms over the period 2001-2011 and several alternative measures for firm growth (i.e. sales growth, assets growth, and employment growth). The results of fixed effects regression model show that the leverage has a positive effect on firm growth. Furthermore, profitability was found to positively influence the firm growth, while older firms saw a faster increase in assets and sales. Within this particular sample, firm size appears to constrain growth.

Keywords: Romania; Firm growth; financial structure; leverage; listed firms. (search for similar items in EconPapers)
JEL-codes: G32 L25 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2016:j:18:antons

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