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Cited by 54Corporate Finance and GovernanceFinancial Analysis and Corporate GovernanceWorking Capital and Financial Performance

The DOI matches its Crossref record; 12 of the 14 references it cites were found in a registry or an index.

Impact of Financial Leverage on Firm Performance: Textile Composite Companies of Pakistan

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Iqbal, Umer, Usman, Muhammad·2018·SEISENSE Journal of Management
DOI 10.33215/sjom.v1i2.13
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Abstract

The aim of this research is to identify the relationship between financial leverage and the performance of Textile Composite Companies of Pakistan. Pakistan Textile Composite Companies which are listed in PSX (100-index) are selected.5-year data is collected from 2011-2015 and top 16 companies are selected as a sample. Using descriptive statistics, correlation analysis, and a regression model to identify the results. Results show that financial leverage has a negative and significant effect on firm ROE and financial leverage has a positive and significant effect on firm ROA. Further study indicates that the high-interest rate and more amount of debt decrease the value of equity and has a negative impact on firm performance. On the other hand, the amount of debt has a positive impact on firm ROA. Results show that financial leverage has a positive impact on firm performance if the amount of debts do not exceed the amount of equity.

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Research works printed but not linked: 3

  1. Kabajeh Majid, N. F. (2012). The Relationship between the ROA, ROE and ROI Ratios with Jordanian Insurance Public Companies Market Share Prices . International Journal of Humanities and Social Science, 6.
  2. Tugas, F. C. (2012). A Comparative Analysis of the Financial Ratios of Listed Firms. International Journal of Business and Social Science , 18.
  3. Ucal, Meltem, Oksay Serhan. (2011). The Solvency Ratio of External Debt (SRED) as an Indicator of Debt Crisis: The Case of Turkey. international journal of economics and research, 7.

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Metadata

Authors
Iqbal, U., & Usman, M.
Affiliations
University of Gujrat (PK)
Corresponding author
Iqbal, Umer
ORCID
Usman, Muhammad
Venue
SEISENSE Journal of Management
Publisher
SEISENSE
Published
2018-05-05
Volume
1
Issue
2
Pages
70-78
ISSN
2617-5770 (ISSN-L)
DOI
10.33215/sjom.v1i2.13
OpenAlex
W3018581824
Cited by
43
References
14
Citations by year
2026: 3 · 2025: 8 · 2024: 3 · 2023: 11 · 2022: 5 · 2021: 6 · 2020: 7
FWCI
9.56
Type
journal article
Language
en
Open access
Licence
Locations
  • SEISENSE Journal of Management (publishedVersion, cc-by)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion)
  • jom (SEISENSE) (submittedVersion, cc-by)
  • Greater South Information System
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
  • Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
Keywords
leverage, firm performance, textile industry, return on equity, return on assets, debt to equity ratio, interest rates, equity value, debt financing

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