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Firm leverage and investment decisions in an emerging market

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Firm leverage and investment decisions in an emerging market. / Umutlu, Mehmet.
In: Quality and Quantity, Vol. 44, No. 5, 08.2010, p. 1005-1013.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Umutlu, M 2010, 'Firm leverage and investment decisions in an emerging market', Quality and Quantity, vol. 44, no. 5, pp. 1005-1013. https://doi.org/10.1007/s11135-009-9250-y

APA

Umutlu, M. (2010). Firm leverage and investment decisions in an emerging market. Quality and Quantity, 44(5), 1005-1013. https://doi.org/10.1007/s11135-009-9250-y

Vancouver

Umutlu M. Firm leverage and investment decisions in an emerging market. Quality and Quantity. 2010 Aug;44(5):1005-1013. doi: 10.1007/s11135-009-9250-y

Author

Umutlu, Mehmet. / Firm leverage and investment decisions in an emerging market. In: Quality and Quantity. 2010 ; Vol. 44, No. 5. pp. 1005-1013.

Bibtex

@article{70d770d205704b59828db319683db692,
title = "Firm leverage and investment decisions in an emerging market",
abstract = "In this study, the effect of leverage on investment is analyzed by employing panel data methods for the Turkish non-financial firms that are quoted on İstanbul Stock Exchange. For one-way error component models, it is shown that there is a negative impact of leverage on investment for only firms with low Tobin{\textquoteright}s Q. These results are in conformity with the previous literature and agency theories of corporate finance stating that leverage has a disciplining role for firms with low growth opportunities. However, when the model is extended to include the time effects in a two-way error component model, the relation between leverage and investment disappears.",
keywords = "Leverage , Investment , Panel data , Emerging markets",
author = "Mehmet Umutlu",
year = "2010",
month = aug,
doi = "10.1007/s11135-009-9250-y",
language = "English",
volume = "44",
pages = "1005--1013",
journal = "Quality and Quantity",
issn = "0033-5177",
publisher = "Springer Netherlands",
number = "5",

}

RIS

TY - JOUR

T1 - Firm leverage and investment decisions in an emerging market

AU - Umutlu, Mehmet

PY - 2010/8

Y1 - 2010/8

N2 - In this study, the effect of leverage on investment is analyzed by employing panel data methods for the Turkish non-financial firms that are quoted on İstanbul Stock Exchange. For one-way error component models, it is shown that there is a negative impact of leverage on investment for only firms with low Tobin’s Q. These results are in conformity with the previous literature and agency theories of corporate finance stating that leverage has a disciplining role for firms with low growth opportunities. However, when the model is extended to include the time effects in a two-way error component model, the relation between leverage and investment disappears.

AB - In this study, the effect of leverage on investment is analyzed by employing panel data methods for the Turkish non-financial firms that are quoted on İstanbul Stock Exchange. For one-way error component models, it is shown that there is a negative impact of leverage on investment for only firms with low Tobin’s Q. These results are in conformity with the previous literature and agency theories of corporate finance stating that leverage has a disciplining role for firms with low growth opportunities. However, when the model is extended to include the time effects in a two-way error component model, the relation between leverage and investment disappears.

KW - Leverage

KW - Investment

KW - Panel data

KW - Emerging markets

U2 - 10.1007/s11135-009-9250-y

DO - 10.1007/s11135-009-9250-y

M3 - Journal article

VL - 44

SP - 1005

EP - 1013

JO - Quality and Quantity

JF - Quality and Quantity

SN - 0033-5177

IS - 5

ER -