The survey of relative influence of business strategies on the relationship between financial leverage and performance

Subject Areas : Financial Knowledge of Securities Analysis

سمیرا هنربخش ¹ , حمید بیرجندی ² , مسعود بیرجندی ³

1 - مسئول مکاتبات
2 - ندارد
3 - ندارد

Received: 2012-01-16 Accepted : 2012-04-03 Published : 2012-12-15

Keywords: Cost Leadership Strategy, Product Differentiation Strate, financial&#x0D, &#x0D, leverage, Performance, dividend pay out, firm’s size,

Abstract :

This study empirically investigates the effects of business strategies on therelationship between financial leverage and the performance of firms.The research data is collected from 45 firms in the Tehran Security Exchange(TSE) during 1381-1387, using by Rahavard software and TSE site. The statisticaltechnique used for examining the assumption is regression coefficients. For testing ofthe assumptions, firms divided to 2 sections: firms with cost leadership strategy andfirms with product differentiation strategy. The results indicate that in the 2 typesfirms, there is positive relationship between leverage with performance.The results also suggest that in the firms with cost leadership strategy, dividendpay out have positive relationship with performance and in the firms with productdifferentiation strategy, there is positive relationship between firm’s size withperformance, but relation between dividend pay out with performance is negative.