|
IMPACTS OF LEVERAGE ON INVESTMENT: A BRIEF VIEW OF PAKISTANI LISTED FIRMS |
|---|---|
| รหัสดีโอไอ | |
| Creator | urman Ali, Zeeshan Fareed, Talat Mehmood Khan, Hamid Raza |
| Title | IMPACTS OF LEVERAGE ON INVESTMENT: A BRIEF VIEW OF PAKISTANI LISTED FIRMS |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2562 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 10 |
| Journal No. | 17 |
| Page no. | 10A17G: 1-8 |
| Keyword | Investment Decision, Pakistan Stock Exchange, Panel Regression, Emerging Markets. |
| URL Website | http://tuengr.com/Vol10_17.html |
| Website title | ITJEMAST V10(17) 2019 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | The association between financial leverage and corporate investment strategy is considered a significant concern in corporate finance; Therefore, we proceed with this line of research to elaborate further the impact of leverage on investment decisions using panel regression and Two-Stage Least Squares (2SLS) regression. Our sample covers all non-financial Pakistani firms listed in Pakistan Stock Exchange (PSX) from the year 2008 to 2017. The results indicate that there is an inverse relationship between leverage and investment in the Pakistani context. However, this inverse association is unique to higher and lower growth firms. We further documented that leverage has a negative and significant impact on the lower growth firms than the higher growth ones. Our results are aligned with the agency theory of corporate leverage, focusing mainly on the theory that financial leverage has a unique and disciplining position in low growth organizations. |
