戦略経営アカデミージャーナル

1939-6104

抽象的な

The Implications of Debt Financing Policy on Firm's Corporate Performance

Mohammad Aladwan, Alsinglawi, Alhawatmeh, Mohammad Almaharmeh

The study aims to focus on establishing evidence for the impact of debt financing policy on firm corporate performance. The study employed correlative regression design using panel data for Jordanian non-financial companies covered the period from 2006 to 2019. Return on Assets (ROA) and Return on Equity (ROE) were used as determinants of firm corporate performance while Accounts Payable Debt (APD), Short-Term Loans (STD), Long-Term Loans (LTD) were employed as determinants of debt financing policy; other variables namely; Total Assets (TA), Operating Income (OINC) and operating cash flow (LIQ) were used as control variables. The final results of the study provided conclusive evidence that corporate performance moves positively or negatively depending on the type of debt source, the unanticipated regression correlations revealed mixed results; short term loans was found positively correlated with performance, Whilst long term loans and accounts payable debt were surprisingly negatively correlated to performance

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