0

Moderating Effect of Competitive Strategies on the Relation between Financial Leverage and Firm Performance: Evidence from Jordan.

Dec 07, 2018

DOI:

Published in: Business and Economic Horizons

Dr. Mohammad Ahmad Al-Omari

This study examined the moderating role of competitive strategy in the relationship between financial leverage and performance of firms based on a sample of industrial firms in Jordan between 2007 and 2016. The interaction between competitive strategy and financial leverage was revealed to influence the effects of financial leverage towards the performance of firms in terms of return on assets (accounting-based measure) and market-to-book ratio (market-based measure). Conclusively, obtained results are in line with the notion that firms that employ cost leadership strategy experience tax advantages and increased efficiency through debt financing and/or debt covenants. This study extends the overall understanding on the effects of financial leverage towards performance of firms and how this relationship is moderated by competitive strategy among firms in an emerging market such as Jordan

Other Researches

The Mediating Effect of University Role in Determining the Relationship between Entrepreneurial Orientation, Entrepreneurial Perception and New Venture Creation: A Thai Case Study

The prime objective of the current study is to examine the mediating effect of university role in determining the relationship between entrepreneurial orientation, entrepreneurial perception and new venture creation among university students in Thai...

Innovative Work Behavior: A Review of Literature

Innovation has been recognized as one of the main strategies for organizations to remain competitive in today’s competitive economy. Employees’ innovative work behavior is the primary driver for organizational-wide innovation. Innovative work behavi...

INNOVATIVE WORK BEHAVIOR: A REVIEW OF LITERATURE

Innovation is recognized as one of the main attributes for organizations to remain competitive and successful in today’s global economy. The innovative work behavior of employees is the primary capital and driver for organizational-wide innovation...

Engineers Innovative Work Behavior: The Role of Emotional Intelligence

This paper intends to examine the relationship between Emotional Intelligence, and Innovative Work Behavior among telecommunication engineers in Jordan telecommunication Industry. Its purpose is to study the effect of Emotional Intelligence of the...

What Drive Innovative Work Behavior among Engineers? The Role of Transformational Leadership.

This paper intends to examine the relationships between Transformational Leadership, and Innovative Work Behavior among telecommunication engineers in Jordan telecommunication Industry. Its purpose is to study the effect of Transformational Leadersh...

Organizational Practices and Employee Engagement: A Case of Malaysia Electronics Manufacturing Firms

The purpose of this study is to examine the impact of organizational practices on employee engagement based on 97 sample respondents from a multinational electronics firm that is based in Malaysia.

Transformational Leadership and Organizational Innovation: The Moderating Effect of Emotional Intelligence.

Transformational leadership has become the most affecting factor that influences organizational innovation since the last becomes the critical surviving elements in today business. Therefore, the main purpose of this study is to discuss the relation...

Workplace Violence: A Case in Malaysian Higher Education Institute

The objective of this study is to examine the factors that contribute to workplace violence in one of the higher education institutes that is based in Malaysia.