Explaining the effect of leverage on performance through business strategy, competitive intensity and type of debt

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Edralin C. Lim

Defense Panel Chair

John Paolo Rivera

Defense Panel Member

Tommy Tiu

Camille Concepcion

Abstract/Summary

This study is intended for understanding the way leverage indirectly affects the firm's performance through different factors like: strategy, competitive intensity and, the types of debt which leverage was sourced. Strategies such as product differentiation and cost efficiency are factors that explain the effect of leverage to performance which is due to the fact that debt entails certain restrictions that would be able to constrict managers' investment decisions. The second facet is business competitiveness, because of higher competitive intensity lessens the impact of leverage on returns. Lastly type of debt, whether relational or transactional, due to the fact that different source of leverage have different implications that affect performance. The undertaking of this paper is meant to observe if such conditions also hold true on an entirely different market and geography such as the Philippines.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17175

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

62 leaves : illustrations ; 28 cm.

Keywords

Financial leverage--Philippines

This document is currently not available here.

Share

COinS