The effect of financial leverage on operating performance: evidnce from the Czech Republic

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

The effect of financial leverage on operating performance: evidnce from the Czech Republic

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

The effect of financial leverage on operating performance: evidnce from the Czech Republic

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50201 - Economic Theory

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach<br>I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2021

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Prague Economic Papers

ISSN

1210-0455

e-ISSN

—

Svazek periodika

30

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

21

Strana od-do

381-401

Kód UT WoS článku

000692131500001

EID výsledku v databázi Scopus

2-s2.0-85114462641