THE IMPACT OF FINANCIAL LEVERAGE ON PERFORMANCE OF TRADE IN SERBIA

Radojko Lukic

Business Excellence and Management, 2015, vol. 5, issue 3, 5-21

Abstract: The capital structure, i.e. financial leverage is one of the significant factors of (trade) companies' performance. Financial leverage affects liquidity, profitability and other segments of performance of trading companies. Application of the correlation analysis in empirical research of trade sector in Serbia for the period 2008-2013 showed that financial leverage positively affects return of assets and return on equity while negatively affects current liquidity, quick liquidity and return on revenue. Concerning the statistical significance, the impact of financial leverage in trade of Serbia is significant in quick liquidity and return on equity (sig.

Keywords: Capital structure; Financial leverage; Measures and determinants; Liquidity; Profitability (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:rom:bemann:v:5:y:2015:i:3:p:5-21

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