arbiter
JournalsPricingAccount

INVESTIGATING THE ROLES OF LEVERAGE AND SIZE ON FIRM'S VULNERABILITY: TURKEY EVIDENCE

Unknown author

Global Journal of Accounting and Finance2021https://doi.org/10.47177/gjaf.05.02.2021.167article
ABDC C
Weight
0.34

What the paper says

This paper aims to examine the roles of leverage and size on a firm's vulnerability.Some studies defend the larger firms are more financially fragile.Considering that there are opposite views in the literature, this study tested which one is valid for Turkish manufacturing firms.We applied panel data analysis, including Altman's Emerging Market Z Score and Merton's Distance to Default Score.We examined 116 Borsa Istanbul (BIST) firms in the manufacturing sector using their last ten-year data.We found that leverage is positively, and size is negatively correlated to the firms' vulnerability.These findings have been reached using both accounting-based and market-based measures.Unlike the studies championing larger firms are more vulnerable, our results support the vice versa.The firms with less leverage and larger are more resilient and less vulnerable.This study's originality is the first one that uses both accounting-based and market-based measures together in Turkey.Although both measures identify firm vulnerability, each one uses different kinds of information about a firm and thus reflects different perspectives.We don't investigate which model is running best.Instead, we search if the effects of size and leverage on firm vulnerability are similar for each measure.Whether larger firms are more vulnerable or not is an essential question for managers and regulatory agencies.The findings of the study can be used for regulatory and managerial purposes.

1 citation

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.47177/gjaf.05.02.2021.167

Or copy a formatted citation

@article{unknown2021,
  title        = {{INVESTIGATING THE ROLES OF LEVERAGE AND SIZE ON FIRM'S VULNERABILITY: TURKEY EVIDENCE}},
  author       = {Unknown author},
  journal      = {Global Journal of Accounting and Finance},
  year         = {2021},
  doi          = {https://doi.org/https://doi.org/10.47177/gjaf.05.02.2021.167},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

INVESTIGATING THE ROLES OF LEVERAGE AND SIZE ON FIRM'S VULNERABILITY: TURKEY EVIDENCE

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.34

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.