The influence of competitive environment and business strategies on the relationship between firm's financial leverage and performance
Subject Areas : Management Accounting
1 - ندارد
2 - ندارد
Keywords: Business Strategy, Competitive intensity, financial leverage, Performance,
Abstract :
This study is concerned to investigate the influence of competitive environmentand business strategies on the relationship between firm's financial leverage andperformance.135 firms listed in TSE as samples during 1381-1388 were selected.Results corroborate not only there were negative and significant relation but alsoindustrial competitive intensity and business strategy had an influence significantly.These influences on firms with cost leadership strategy were further than firms withproduct differentiation strategy. Furthermore impact of industrial competitiveintensity on relationship between financial leverage &performance was positivelysignificant. Generally, firms with product differentiation strategy and active in highcompetitive intensity environment have the most impact on the relationship betweenfinancial leverage & performance. Meanwhile, other pair as to strategy andcompetitiveness had less impact on that relationship.
