THE IMPACT OF LIQUIDITY AND LEVERAGE ON FINANCIAL PERFORMANCE : Evidence from Italy’s Economic Recession Between 2008 - 2016
- 주제(키워드) Liquidity , leverage , SMEs , economic recession
- 발행기관 아주대학교
- 지도교수 Kyungho Kim
- 발행년도 2019
- 학위수여년월 2019. 2
- 학위명 석사
- 학과 및 전공 일반대학원 경영학과
- 실제URI http://www.dcollection.net/handler/ajou/000000028486
- 본문언어 영어
- 저작권 아주대학교 논문은 저작권에 의해 보호받습니다.
초록/요약
This study investigates the impacts of liquidity and leverage on the financial performance of Italian Small-Medium Enterprises (SMEs). Specifically, this study focuses on the economic recession period from 2008 to 2016 which provokes a liquidity crisis, given the recent economic crisis causes the mechanism of the credit crunch. This liquidity crisis mainly affects SMEs, which also suffer from the delay of payments and decrease of sales. Therefore, an increasing number of companies try to rely on leverage, to avoid bankruptcy. This study analysed 79 ICT companies between 2008 and 2016, found that liquidity has a positive effect on financial performance. On the other hand, the results show that leverage has an adverse effect on financial performance, implying that relying on leverage during the economic recession is more dangerous, which might be due to the increased risk of bankruptcy. This study carefully suggests empirical evidence that SMEs may increase the financial performance relying on liquidity. Liquidity has a positive effect on financial performance because liquidity improves the firms’ financial flexibility, their chances of investment and market value.
more목차
Abstract i
CHAPTER I. INTRODUCTION 1
CHAPTER II. LITERATURE REVIEW 6
2.1 Liquidity and Financial Performance 6
2.1.1 Transaction Cost Theory 6
2.1.2 Agency Theory 7
2.2 Leverage and Financial Performance 9
2.3 Hypotheses 11
2.3.1 Liquidity and Financial Performance 11
2.3.2 Leverage and Financial Performance 13
CHAPTER III. RESEARCH METHODOLOGY 16
3.1 Variables 16
3.1.1.Independent Variable 16
3.1.1.1 Liquidity 16
3.1.1.2 Leverage 16
3.1.2 Dependent Variable 17
3.1.3 Control Variable 17
3.2 Population and Sample 20
3.2.1 Population 20
3.2.2 Sample 21
3.3 Data Analysis 22
CHAPTER IV. RESULT AND DISCUSSION 23
4.1 Results 23
4.2 Discussion 26
4.2.1.Theoretical Implications and Future Reseach Directions 28
4.2.2 Practical Implications 29
4.2.3 Limitations 30
CHAPTER V. CONCLUSION 31
REFERENCES 31
