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The Business Sector, Firm Age, and Performance: The Mediating Role of Foreign Ownership and Financial Leverage

Author

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  • Edmund Mallinguh

    (Management and Business Administration, School of Economic and Regional Sciences, Szent István University, 2100 Godollo, Hungary)

  • Christopher Wasike

    (Management Science, School of Business, University of Nairobi, University Way, P.O. Box 30197-00100, Nairobi, Kenya)

  • Zeman Zoltan

    (Finance Management and Control, Institute of Business Sciences and Internal Control, Szent István Egyetem, 2100 Godollo, Hungary)

Abstract

The paper explores the business sector and firm age effects on firm performance mediated by foreign ownership levels in domestic firms and financial leverage by examining 146 Medium Enterprises (MEs). The results show that except for ownership, the business sector, firm age, foreign ownership level, and financial leverage significantly influence performance. Foreign ownership substantially mediates the correlation between firm age and performance but not leverage. Both foreign ownership and leverage have no substantial mediating effect on the relationship between the business sector and financial performance. Moreover, the findings reveal business sectors whose performance is statistically different from zero based on the referent group.

Suggested Citation

  • Edmund Mallinguh & Christopher Wasike & Zeman Zoltan, 2020. "The Business Sector, Firm Age, and Performance: The Mediating Role of Foreign Ownership and Financial Leverage," IJFS, MDPI, vol. 8(4), pages 1-16, December.
    • Handle: RePEc:gam:jijfss:v:8:y:2020:i:4:p:79-:d:463743
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