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Capital Structure and Firm Performance During Global Financial Crisis

Year 2017, Volume: 7 Issue: 4, 498 - 506, 01.12.2017

Abstract

The relationship between capital structure and firm performance has been extensively investigated in the recent decades. However, only few studies investigate this relationship during financial crisis. Recent global financial crisis provides an opportunity to examine the effect of the crisis on the relationship between capital structure and firm performance. Therefore, this paper aims to investigate this relationship based on 45 listed companies involved in trading and services sector of the Bursa Malaysia, over three specific periods of recent financial crises; the pre-crisis (2004-2006), crisis (2007-2009), and post-crisis recovery (2010-2013). The study results indicate that financial leverage has a strong negative impact on firms’ performance. These results are stronger during the global financial crisis began in 2007 and ended in 2009. These results observed in both simple regression and cross-sectional analyses even after controlling for firm specific measures.

Year 2017, Volume: 7 Issue: 4, 498 - 506, 01.12.2017

Abstract

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Details

Other ID JA24AN63ET
Journal Section Research Article
Authors

Marzieh Khodavandloo This is me

Zukarnain Zakaria This is me

Annuar Md. Nassir This is me

Publication Date December 1, 2017
Published in Issue Year 2017 Volume: 7 Issue: 4

Cite

APA Khodavandloo, M., Zakaria, Z., & Nassir, A. M. (2017). Capital Structure and Firm Performance During Global Financial Crisis. International Journal of Economics and Financial Issues, 7(4), 498-506.
AMA Khodavandloo M, Zakaria Z, Nassir AM. Capital Structure and Firm Performance During Global Financial Crisis. IJEFI. December 2017;7(4):498-506.
Chicago Khodavandloo, Marzieh, Zukarnain Zakaria, and Annuar Md. Nassir. “Capital Structure and Firm Performance During Global Financial Crisis”. International Journal of Economics and Financial Issues 7, no. 4 (December 2017): 498-506.
EndNote Khodavandloo M, Zakaria Z, Nassir AM (December 1, 2017) Capital Structure and Firm Performance During Global Financial Crisis. International Journal of Economics and Financial Issues 7 4 498–506.
IEEE M. Khodavandloo, Z. Zakaria, and A. M. Nassir, “Capital Structure and Firm Performance During Global Financial Crisis”, IJEFI, vol. 7, no. 4, pp. 498–506, 2017.
ISNAD Khodavandloo, Marzieh et al. “Capital Structure and Firm Performance During Global Financial Crisis”. International Journal of Economics and Financial Issues 7/4 (December 2017), 498-506.
JAMA Khodavandloo M, Zakaria Z, Nassir AM. Capital Structure and Firm Performance During Global Financial Crisis. IJEFI. 2017;7:498–506.
MLA Khodavandloo, Marzieh et al. “Capital Structure and Firm Performance During Global Financial Crisis”. International Journal of Economics and Financial Issues, vol. 7, no. 4, 2017, pp. 498-06.
Vancouver Khodavandloo M, Zakaria Z, Nassir AM. Capital Structure and Firm Performance During Global Financial Crisis. IJEFI. 2017;7(4):498-506.