Taking a Look at Leverage Ratio

3033 Words Feb 24th, 2018 12 Pages
To see the effect of growth on leverage ratio.
2. To look the influence of asset structure on leverage ratio.
3. To determine whether profitability has its impact on leverage ratio.
4. To look into the effect on debt service ratio on leverage ratio.
5. To determine whether agency cost has its effect on leverage ratio.
6. To examine whether size has its impact on leverage ratio.
7. To see whether business risk has its impact on leverage ratio.
8. To examine whether tangibility has its effect on leverage ratio.
9. To look the influence of bankruptcy on leverage ratio.
10. To examine whether non-debt tax has its impact on leverage ratio.

Hypothesis of The Study:

1) Leverage ratio is positively related influenced by growth.

2) Leverage ratio is positively related influenced by asset structure.

3) Leverage ratio is negatively related influenced by profitability.

4) Leverage ratio is positively related influenced by debt service ratio.

5) Leverage ratio is negatively related influenced by agency cost.

6) Leverage ratio is positively related influenced by size.

7) Leverage ratio is negatively related influenced by business risk.

8) Leverage ratio is positively related influenced by tangibility.

9) Leverage ratio is positively related influenced by bankruptcy cost.

10) Leverage ratio is negatively related influenced by non-debt-tax.

Research Methodology:
Multiple regression model has been applied to study the impact of…

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