An interaction between firm strategy, capital structure and firm's performance
The study tries to determine the association among corporate strategy, social structure and firm performance. In this regard, the monetary reports of 78 companies listed in Karachi Stock Exchange since 2007 to 2014 were scrutinized. In this research, firm strategy (sales growth, liquidity) and capit...
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my.utm.601032021-12-19T07:39:50Z http://eprints.utm.my/id/eprint/60103/ An interaction between firm strategy, capital structure and firm's performance Ramakrishnan, Suresh Ahmad Anuar, Melati Amad Nabi, Agha Muneer, Saqib HD28 Management. Industrial Management The study tries to determine the association among corporate strategy, social structure and firm performance. In this regard, the monetary reports of 78 companies listed in Karachi Stock Exchange since 2007 to 2014 were scrutinized. In this research, firm strategy (sales growth, liquidity) and capital structure (debt ratio) were used as sovereign variables, and firm performance (return on equity, return on assets, free cash flow for the firm, free cash flow per share) were functional and are used as dependent variables, so to study the affiliation between corporate strategy, capital structure and firm performance within a 8-years period from 2007 to 2014. Secondary data has been used to test the hypotheses; single variable linear regression method was used and their significance was evaluated using Statistics T (t-test) and F (Fisher). The study results indicate that there is a significant positive relationship between sales growth variables and two types (among four types) of performance criteria in the study, namely return on equity and return on assets. And there is a positive significant relationship between firm liquidity and three criteria of firm's performance in the study namely return on equity, free cash flow per share and return on assets. Also, debt ratio has a positive significant relationship with free cash flow for firm and a negative significant relationship with return on assets. 2015 Article PeerReviewed Ramakrishnan, Suresh and Ahmad Anuar, Melati and Amad Nabi, Agha and Muneer, Saqib (2015) An interaction between firm strategy, capital structure and firm's performance. Journal Of Economics And Behavioral Studies, 7 (4). pp. 37-47. ISSN 2220-6140 |
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HD28 Management. Industrial Management Ramakrishnan, Suresh Ahmad Anuar, Melati Amad Nabi, Agha Muneer, Saqib An interaction between firm strategy, capital structure and firm's performance |
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The study tries to determine the association among corporate strategy, social structure and firm performance. In this regard, the monetary reports of 78 companies listed in Karachi Stock Exchange since 2007 to 2014 were scrutinized. In this research, firm strategy (sales growth, liquidity) and capital structure (debt ratio) were used as sovereign variables, and firm performance (return on equity, return on assets, free cash flow for the firm, free cash flow per share) were functional and are used as dependent variables, so to study the affiliation between corporate strategy, capital structure and firm performance within a 8-years period from 2007 to 2014. Secondary data has been used to test the hypotheses; single variable linear regression method was used and their significance was evaluated using Statistics T (t-test) and F (Fisher). The study results indicate that there is a significant positive relationship between sales growth variables and two types (among four types) of performance criteria in the study, namely return on equity and return on assets. And there is a positive significant relationship between firm liquidity and three criteria of firm's performance in the study namely return on equity, free cash flow per share and return on assets. Also, debt ratio has a positive significant relationship with free cash flow for firm and a negative significant relationship with return on assets. |
format |
Article |
author |
Ramakrishnan, Suresh Ahmad Anuar, Melati Amad Nabi, Agha Muneer, Saqib |
author_facet |
Ramakrishnan, Suresh Ahmad Anuar, Melati Amad Nabi, Agha Muneer, Saqib |
author_sort |
Ramakrishnan, Suresh |
title |
An interaction between firm strategy, capital structure and firm's performance |
title_short |
An interaction between firm strategy, capital structure and firm's performance |
title_full |
An interaction between firm strategy, capital structure and firm's performance |
title_fullStr |
An interaction between firm strategy, capital structure and firm's performance |
title_full_unstemmed |
An interaction between firm strategy, capital structure and firm's performance |
title_sort |
interaction between firm strategy, capital structure and firm's performance |
publishDate |
2015 |
url |
http://eprints.utm.my/id/eprint/60103/ |
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1720436915861192704 |
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13.18916 |