The effect of financial leverage on operating performance: evidnce from the Czech Republic
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F21%3A10430976" target="_blank" >RIV/00216208:11230/21:10430976 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=yF0mDsW00E" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=yF0mDsW00E</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.18267/j.pep.774" target="_blank" >10.18267/j.pep.774</a>
Alternative languages
Result language
angličtina
Original language name
The effect of financial leverage on operating performance: evidnce from the Czech Republic
Original language description
The paper investigates the relationship of financial leverage and operating performance in a small open economy. A comprehensive sample consists of panel data from 1,821 Czech firms over the period 2006 to 2017. We find that leverage has a negative effect on the operating performance for the entire sample as well as for subsamples structured according to size or sector. We also find evidence that the relationship between leverage and performance in some sectors and segments is weakened during periods of economic downturn, as well as during the recent foreign exchange interventions of the Czech National Bank. Our study, focusing on the banking perspective, contributes to the debate about the impact of differences in leverage across sectors and segments on the capital allocation channels, managed in small open economies predominantly by banks.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach<br>I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Prague Economic Papers
ISSN
1210-0455
e-ISSN
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Volume of the periodical
30
Issue of the periodical within the volume
4
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
21
Pages from-to
381-401
UT code for WoS article
000692131500001
EID of the result in the Scopus database
2-s2.0-85114462641