1. bookVolume 59 (2021): Issue 4 (December 2021)
Journal Details
License
Format
Journal
eISSN
2217-3668
First Published
15 Apr 2014
Publication timeframe
4 times per year
Languages
English
access type Open Access

Impact of Debt Management on Profitability of Large Non-Financial Firms in Serbia

Published Online: 09 May 2022
Volume & Issue: Volume 59 (2021) - Issue 4 (December 2021)
Page range: 461 - 477
Received: 28 Apr 2021
Accepted: 17 Nov 2021
Journal Details
License
Format
Journal
eISSN
2217-3668
First Published
15 Apr 2014
Publication timeframe
4 times per year
Languages
English
Abstract

Profitability is substantial for any firm to maintain business and enable long-term sustainability. Firms’ decision on indebtedness and capital structure have influence on potentials for prosperity, growth, and development. This study aims to find a new empirical evidence on the influence of debt (debt ratio and debt to equity ratio) on firm profitability (ROA), with application to 50 non-financial firms with highest revenues in Serbia in 2019 during 2016-2019 using multiple ordinary least squares regression model. After control for size, liquidity and tangibility of assets, the results find statistically significant correlation and negative influence of debt ratio and capital structure on firm profitability.

Keywords

JEL Classification

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