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The Impact Of Leverage On Firm Growth. Empirical Evidence From Romanian Listed Firms

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  • Sorin Gabriel ANTON

    (Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Iasi, Romania)

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.

Suggested Citation

  • Sorin Gabriel ANTON, 2016. "The Impact Of Leverage On Firm Growth. Empirical Evidence From Romanian Listed Firms," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 18, pages 147-158, December.
  • Handle: RePEc:aic:revebs:y:2016:j:18:antons
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    References listed on IDEAS

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    Cited by:

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    2. Khémiri, Wafa & Noubbigh, Hédi, 2021. "Joint analysis of the non-linear debt-growth nexus and capital account liberalization: New evidence from sub-Saharan region," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 614-626.
    3. Adina Elena Dănulețiu, 2020. "Evolution of Romanian Management Consulting Firms from Alba County," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 871-878, December.
    4. Jasmina Džafić & Nedžad Polić, 2018. "Corporate Finance Principles and Wood Industry Growth: Empirical Evidence from Bosnia and Herzegovina," International Business Research, Canadian Center of Science and Education, vol. 11(11), pages 74-83, November.

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    More about this item

    Keywords

    Romania; Firm growth; financial structure; leverage; listed firms.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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