miun.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Debt financing and firm performance: an empirical study based on Swedish data
Mid Sweden University, Faculty of Human Sciences, Department of Social Sciences.
Mid Sweden University, Faculty of Human Sciences, Department of Business, Economics and Law.
2015 (English)In: The Journal of Risk Finance, ISSN 1526-5943, Vol. 16, no 1, 102-118 p.Article in journal (Refereed) Published
Abstract [en]

The purpose of this study is to examine the relationship between debt level and performance among small and medium-sized enterprises (SMEs). Design/methodology/approach– Unlike the vast majority of previous research, this study uses three-stage least squares (3SLS) and fixed-effects models to analyse a comprehensive, cross-sectoral sample of 15,897 Swedish SMEs operating in five industry sectors during the 2009-2012 period. Findings– This study confirms that debt ratios, in terms of trade credit, short-term debt and long-term debt, negatively affect firm performance in terms of profitability. As a high debt ratio seems to increase the agency costs and the risk of losing control of the firm, SME owners and managers tend to finance their businesses with equity capital to a fairly high degree.

Place, publisher, year, edition, pages
UK: Emerald Group Publishing Limited, 2015. Vol. 16, no 1, 102-118 p.
Keyword [en]
Profitability, SMEs, Capital structure, Firm performance, Sweden, Debt policy
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:miun:diva-23431DOI: 10.1108/JRF-06-2014-0085Scopus ID: 2-s2.0-84995897724OAI: oai:DiVA.org:miun-23431DiVA: diva2:763669
Available from: 2014-11-16 Created: 2014-11-16 Last updated: 2016-12-05Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full textScopus

Search in DiVA

By author/editor
Yazdanfar, DarushÖhman, Peter
By organisation
Department of Social SciencesDepartment of Business, Economics and Law
In the same journal
The Journal of Risk Finance
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar

Altmetric score

Total: 721 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf