Gearing ratio and operating cash flow performance of quoted manufacturing firms in Nigeria

https://doi.org/10.35912/ijfam.v4i4.1090
Published: Mar 7, 2023

Abstract:

Purpose: The study examines the effect of gearing ratios on the operating cash flow performance of 36 manufacturing firms listed on the Nigeria Stock Exchange from 2011 to 2018 financial years. The study evaluated the effect of capital gearing, income and the operating gearing ratios on the operating cash flow of quoted manufacturing firms.

Research methodology: The study adopts an ex post facto research design utilizing a final sample of thirty-six (36) purposively selected manufacturing firms quoted on the Nigerian Stock Exchange (NSE). The study utilized financial statement data compiled by MachameRATIOS®. The data were analyzed using multiple regression techniques.

Results: There is a negative effect of capital and income gearing ratio on operating cash flows with the former not significant, and a positive non-significant effect of operating gearing ratio on operating cash flow.

Limitations: The focus on consumer and industrial goods firms limits the generalizability of the study findings to other sectors of the economy. The study did not test for Granger causality.

Contribution: The study contributes to the literature in the context of developing countries, on the importance of monitoring the different gearing ratios, more especially the income gearing ratio to ensure positive cash flow. The findings also confirm that managers from emerging economies can alter business risk to sustain favorable performance. The study has implications for investors assessing investment decisions on the need to be wary of the different market and financial risk profiles computed from the various measures in making informed investment decisions.

Keywords:
1. Capital Gearing
2. Income Gearing
3. Operating Gearing
4. Operating Cashflow
Authors:
1 . Patricia Chinyere Oranefo
Faculty of Management Sciences, Nnamdi Azikiwe University, Nigeria
2 . Chinedu Francis Egbunike
Faculty of Management Sciences, Nnamdi Azikiwe University, Nigeria
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How to Cite
Oranefo, P. C., & Egbunike, C. F. (2023). Gearing ratio and operating cash flow performance of quoted manufacturing firms in Nigeria. International Journal of Financial, Accounting, and Management, 4(4), 395–410. https://doi.org/10.35912/ijfam.v4i4.1090
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Issue & Section
Vol. 4 No. 4 (2023): March
Articles
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References

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    Akhtar, M. F., Ali, K., & Sadaqat, S. (2011). Factors influencing the profitability of Islamic banks of Pakistan. International Research Journal of Finance and Economics, 66(66), 1-8.

    Aiyegbusi, O. O., & Akinlo, A. E. (2016). The effect of cash holdings on the performance of firms in Nigeria: evidence from generalized method of moments (GMM). FUTA Journal of Management and Technology, 1(2), 1-12.

    Ally, R. K., Olutayo K, O., Eric, M., Jadwiga, N., Samuel, P., & John, B. B. (2015). Firm age and performance in Kampala, Uganda: A selection of small business enterprises.

    Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The journal of finance, 23(4), 589-609.

    Altman, E. I. (2000). Predicting financial distress of companies: revisiting the z-score and Zeta® models. 2000. Stern School of Business, New York: official site. URL: http://pages.stern.nyu. edu/~ ealtman/Zscores. pdf.

    Badawi, A. (2017). Effect of Credit Risk, Liquidity Risk, and Market Risk Banking to Profitability Bank (Study on Devised Banks in Indonesia Stock Exchange). European Journal of Business and Management, 9(29), 1-8.

    Ball, N. (2005). Strengthening democratic governance of the security sector in conflict?affected countries. Public Administration and Development: The International Journal of Management Research and Practice, 25(1), 25-38.

    Berle, A., & Gardiner, C. (1932). Means. The Modern Corporation and Private Property. New York: Commerce Clearing House: Inc.

    Bland, V. (2006). Cash is king. New Zealand Management, 53(2), 51.

    Brander, J. A., & Lewis, T. R. (1986). Oligopoly and financial structure: The limited liability effect. The American Economic Review, 956-970.

    Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2012). Principles of corporate finance: Tata McGraw-Hill Education.

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    Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. Journal of political economy, 93(6), 1155-1177.

    Eisenhardt, K. M. (1989). Making fast strategic decisions in high-velocity environments. Academy of Management Journal, 32(3), 543-576.

    El Mokrani, Y., & Alami, Y. (2021). The effects of corporate governance mechanisms on earnings management: Empirical evidence from Moroccan listed firms. International Journal of Financial, Accounting, and Management, 3(3), 205-225.

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    Fagbamigbe, A., Afolabi, R. F., & Yusuf, O. (2019). Trend analysis of teenage pregnancy in Nigeria (1961-2013): How effective is the contraceptive use campaign. International Journal of Public Health Science (IJPHS), 8(2), 163-173.

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    Ghosh, S. (2008). Leverage, foreign borrowing and corporate performance: firm-level evidence for India. Applied Economics Letters, 15(8), 607-616.

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    Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (Vol. 6).

    Hamidi, H. (2014). Analisis Rasio Keuangan Pada Perusahaan Telekomunikasi Yang Terdaftar Di Bursa Efek Indonesia (BEI) Periode Tahun 2010-2013. MEASUREMENT: Journal of the Accounting Study Program, 8(1), 24-36.

    Hidayat, F., & Kurniasih, A. (2022). Financial Performance Determinants of Financing Companies Listed on the Indonesia Stock Exchange. Saudi J Econ Fin, 6(4), 141-146.

    Himmelberg, C. P., Hubbard, R. G., & Palia, D. (1999). Understanding the determinants of managerial ownership and the link between ownership and performance. Journal of financial economics, 53(3), 353-384.

    Ilaboya, O. J., & Ohiokha, I. F. (2016). Firm age, size and profitability dynamics: a test of learning by doing and structural inertia hypotheses. Business and Management Research, 5(1), 29-39.

    Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323-329.

    Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.

    Ji, H. (2019). The Impact of interest coverage ratio on value relevance of reported earnings: evidence from South Korea. Sustainability, 11(24), 7193.

    Kasasbeh, F. I. (2021). Impact of financing decisions ratios on firm accounting-based performance: evidence from Jordan listed companies. Future Business Journal, 7(1), 1-10.

    Kassi, D. F., Rathnayake, D. N., Louembe, P. A., & Ding, N. (2019). Market risk and financial performance of non-financial companies listed on the Moroccan stock exchange. Risks, 7(1), 20.

    Kaufman, R. L. (2013). Heteroskedasticity in regression: Detection and correction: Sage Publications.

    Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., . . . Thomas, D. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management, 42(1), 3-21.

    Kofoworola, S. A. (2022). An assessment of the impact of gearing intensity on the performance of deposit money banks in Nigeria. Accounting Banking and Finance Program, School of Economic Sciences and ….

    Lavorskyi, M. (2013). The impact of capital structure on firm performance. (Doctoral), Kyiv School of Economic, Ukraine.

    Lawes, R., & Kingwell, R. (2012). A longitudinal examination of business performance indicators for drought-affected farms. Agricultural Systems, 106(1), 94-101.

    Liviani, R., & Rachman, Y. T. (2021). The influence of leverage, sales growth, and dividend policy on company value. International Journal of Financial, Accounting, and Management, 3(2), 165-178.

    Lumbantobing, R. (2020). The Effect of Financial Ratios on the Possibility of Financial Distress in Selected Manufacturing Companies Which Listed in Indonesia Stock Exchange. Paper presented at the Proceeding of the 6th Annual International Conference on Management Research (AICMaR 2019). Advances in Economics, Business and Management Research.

    Mathur, N., Tiwari, S. C., Ramaiah, T. S., & Mathur, H. (2021). Capital structure, competitive intensity and firm performance: an analysis of Indian pharmaceutical companies. Managerial Finance.

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    Mufidah, M. (2018). Pengaruh Asset Growth, Sales Growth, Net Profit Margin, Current Ratio dan Debt To Equity Ratio terhadap Dividend Payout Ratio pada Perusahaan yang Termasuk dalam Indeks Lq 45 Tahun 2013–2016. J-MAS (Jurnal Manajemen dan Sains), 3(1), 12-25.

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    Myers, S. C. (1977). Determinants of corporate borrowing. Journal of financial economics, 5(2), 147-175.

    Narkabtee, N. (2000). Earnings: Quality means everything: New York: Mc Graw-Hill.

    Nenu, E. A., Vintil?, G., & Gherghina, ?. C. (2018). The impact of capital structure on risk and firm performance: Empirical evidence for the Bucharest Stock Exchange listed companies. International Journal of Financial Studies, 6(2), 41.

    Nugraha, R., & Bayunitri, B. I. (2020). The influence of internal control on fraud prevention (Case study at Bank BRI of Cimahi City). International Journal of Financial, Accounting, and Management, 2(3), 199-211.

    Ogbonnaya, A., Ekwe, M., & Uzoma, I. (2016). Relationship of cash flow ratios and financial performance of listed banks in emerging economies–Nigeria example. European Journal of Accounting, Auditing and Finance Research, 4(4), 89-97.

    Onuora, J. K., & Obia, C. E. (2018). Effect of Financial Leverage on Firms’ Financial Performance: A Study of Listed Companies in Agricultural Sector. Journal of Economics and Sustainable Development, 9(2).

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    Osegbue, I. F., Nweze, A., Ifurueze, M., & Nwoye, C. M. (2018). Effects of tax sheltering on earnings management in Nigeria. Research Papers in Economics and Finance, 3(2), 45-69.

    Panda, A. K., & Nanda, S. (2018). Working capital financing and corporate profitability of Indian manufacturing firms. Management Decision.

    Pandey, I. M. (2015). Financial Management (Eleventh Edition) (5th or later edition ed.).

    Pillai, A. A., & Kaushal, U. (2020). Research Methodology-An Introduction To Literary Studies. Central Asian Journal Of Literature, Philosophy And Culture, 1(1), 1-11.

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    Rahmawati, Y., & Hadian, H. N. (2022). The influence of Debt Equity Ratio (DER), Earning Per Share (EPS), and Price Earning Ratio (PER) on stock price. International Journal of Financial, Accounting, and Management, 3(4), 289-300.

    Ross, A. D. (2010). A virtuous cycle: Tracing democratic quality though equality: Texas A&M University.

    Seth, H., Chadha, S., Ruparel, N., Arora, P. K., & Sharma, S. K. (2020). Assessing working capital management efficiency of Indian manufacturing exporters. Managerial Finance.

    Shabrina, W., & Hadian, N. (2021). The influence of current ratio, debt to equity ratio, and return on assets on dividend payout ratio. International Journal of Financial, Accounting, and Management, 3(3), 193-204.

    Siyanbola, T. T., Olaoye, S. A., & Olurin, O. T. (2015). Impact of gearing on performance of companies. Arabian Journal of Business and Management Review (Nigerian Chapter), 3, 68-80.

    Susanti, N., Latifa, I., & Sunarsi, D. (2020). The Effects of Profitability, Leverage, and Liquidity on Financial Distress on Retail Companies Listed on Indonesian Stock Exchange. Jurnal Ilmiah Ilmu Administrasi Publik, 10(1), 45-52.

    Titman, S. (1984). The effect of capital structure on a firm's liquidation decision. Journal of financial economics, 13(1), 137-151.

    Udoayang, J. O., Uwah, U. E., & Asuquo, A. I. (2020) Optimizing Return on Assets through Investment in Property, Plant and Equipment: Evidence from Listed Nigerian Manufacturing Companies. International Journal of Management and Humanities (IJMH), 4(10), 50-57.

    Uremadu, S. (2004). Financial Management and Investment Decisions: Concepts, Analysis and Applications: Precision Publishers.

    Wahyudi, I. (2011). Analysis of effect of leverage and cash flow today on future financial performance of Indonesian public company: Signaling theory vs. the Pecking Order theory. The Pecking Order Theory.

    Yusuf, S. I., Mwakubo, S. M., & Mwakachola, S. N. (2019). The Effect of Capital Structure Gearing Levels on Financial Performance of Public and Private Sector Firms in Kenya’s Coastal Counties. International Journal of Economics and Finance, 11(3), 99-126.

  1. Abdellahi, S. A., Mashkani, A. J., & Hosseini, S. H. (2017). The effect of credit risk, market risk, and liquidity risk on financial performance indicators of the listed banks on Tehran Stock Exchange. American Journal of Finance and Accounting, 5(1), 20-30.
  2. Akhtar, M. F., Ali, K., & Sadaqat, S. (2011). Factors influencing the profitability of Islamic banks of Pakistan. International Research Journal of Finance and Economics, 66(66), 1-8.
  3. Aiyegbusi, O. O., & Akinlo, A. E. (2016). The effect of cash holdings on the performance of firms in Nigeria: evidence from generalized method of moments (GMM). FUTA Journal of Management and Technology, 1(2), 1-12.
  4. Ally, R. K., Olutayo K, O., Eric, M., Jadwiga, N., Samuel, P., & John, B. B. (2015). Firm age and performance in Kampala, Uganda: A selection of small business enterprises.
  5. Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The journal of finance, 23(4), 589-609.
  6. Altman, E. I. (2000). Predicting financial distress of companies: revisiting the z-score and Zeta® models. 2000. Stern School of Business, New York: official site. URL: http://pages.stern.nyu. edu/~ ealtman/Zscores. pdf.
  7. Badawi, A. (2017). Effect of Credit Risk, Liquidity Risk, and Market Risk Banking to Profitability Bank (Study on Devised Banks in Indonesia Stock Exchange). European Journal of Business and Management, 9(29), 1-8.
  8. Ball, N. (2005). Strengthening democratic governance of the security sector in conflict?affected countries. Public Administration and Development: The International Journal of Management Research and Practice, 25(1), 25-38.
  9. Berle, A., & Gardiner, C. (1932). Means. The Modern Corporation and Private Property. New York: Commerce Clearing House: Inc.
  10. Bland, V. (2006). Cash is king. New Zealand Management, 53(2), 51.
  11. Brander, J. A., & Lewis, T. R. (1986). Oligopoly and financial structure: The limited liability effect. The American Economic Review, 956-970.
  12. Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2012). Principles of corporate finance: Tata McGraw-Hill Education.
  13. DeFond, M. L. (1992). The association between changes in client firm agency costs and auditor switching. Auditing, 11(1), 16.
  14. Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. Journal of political economy, 93(6), 1155-1177.
  15. Eisenhardt, K. M. (1989). Making fast strategic decisions in high-velocity environments. Academy of Management Journal, 32(3), 543-576.
  16. El Mokrani, Y., & Alami, Y. (2021). The effects of corporate governance mechanisms on earnings management: Empirical evidence from Moroccan listed firms. International Journal of Financial, Accounting, and Management, 3(3), 205-225.
  17. Enekwe, C. I., Agu, C. I., & Eziedo, K. N. (2014). The effect of financial leverage on financial performance: Evidence of quoted pharmaceutical companies in Nigeria. IOSR Journal of Economics and Finance, 5(3), 17-25.
  18. Fagbamigbe, A., Afolabi, R. F., & Yusuf, O. (2019). Trend analysis of teenage pregnancy in Nigeria (1961-2013): How effective is the contraceptive use campaign. International Journal of Public Health Science (IJPHS), 8(2), 163-173.
  19. Field, A., Miles, J., & Field, Z. (2012). Discovering statistics using R: Sage publications.
  20. Foo, S., & Pathak, S. (2019). An analysis of Z-scores and performance: Manufacturing companies in Hong Kong. Asian Journal of Business and Management, 7(2), 28.
  21. Fosu, S. (2013). Capital structure, product market competition and firm performance: Evidence from South Africa. The quarterly review of economics and finance, 53(2), 140-151.
  22. Fout, H., Li, G., Palim, M., & Pan, Y. (2020). Credit risk of low income mortgages. Regional Science and Urban Economics, 80, 103390.
  23. Ghafoorifard, M., Sheykh, B., Shakibaee, M., & Joshaghan, N. S. (2014). Assessing the relationship between firm size, age and financial performance in listed companies on Tehran Stock Exchange. International Journal of Scientific Management and Development, 2(11), 631-635.
  24. Ghosh, S. (2008). Leverage, foreign borrowing and corporate performance: firm-level evidence for India. Applied Economics Letters, 15(8), 607-616.
  25. Gideon, R. (2013). Factors associated with adolescent pregnancy and fertility in Uganda: analysis of the 2011 demographic and health survey data. American Journal of Sociological Research, 3(2), 30-35.
  26. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (Vol. 6).
  27. Hamidi, H. (2014). Analisis Rasio Keuangan Pada Perusahaan Telekomunikasi Yang Terdaftar Di Bursa Efek Indonesia (BEI) Periode Tahun 2010-2013. MEASUREMENT: Journal of the Accounting Study Program, 8(1), 24-36.
  28. Hidayat, F., & Kurniasih, A. (2022). Financial Performance Determinants of Financing Companies Listed on the Indonesia Stock Exchange. Saudi J Econ Fin, 6(4), 141-146.
  29. Himmelberg, C. P., Hubbard, R. G., & Palia, D. (1999). Understanding the determinants of managerial ownership and the link between ownership and performance. Journal of financial economics, 53(3), 353-384.
  30. Ilaboya, O. J., & Ohiokha, I. F. (2016). Firm age, size and profitability dynamics: a test of learning by doing and structural inertia hypotheses. Business and Management Research, 5(1), 29-39.
  31. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323-329.
  32. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
  33. Ji, H. (2019). The Impact of interest coverage ratio on value relevance of reported earnings: evidence from South Korea. Sustainability, 11(24), 7193.
  34. Kasasbeh, F. I. (2021). Impact of financing decisions ratios on firm accounting-based performance: evidence from Jordan listed companies. Future Business Journal, 7(1), 1-10.
  35. Kassi, D. F., Rathnayake, D. N., Louembe, P. A., & Ding, N. (2019). Market risk and financial performance of non-financial companies listed on the Moroccan stock exchange. Risks, 7(1), 20.
  36. Kaufman, R. L. (2013). Heteroskedasticity in regression: Detection and correction: Sage Publications.
  37. Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., . . . Thomas, D. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management, 42(1), 3-21.
  38. Kofoworola, S. A. (2022). An assessment of the impact of gearing intensity on the performance of deposit money banks in Nigeria. Accounting Banking and Finance Program, School of Economic Sciences and ….
  39. Lavorskyi, M. (2013). The impact of capital structure on firm performance. (Doctoral), Kyiv School of Economic, Ukraine.
  40. Lawes, R., & Kingwell, R. (2012). A longitudinal examination of business performance indicators for drought-affected farms. Agricultural Systems, 106(1), 94-101.
  41. Liviani, R., & Rachman, Y. T. (2021). The influence of leverage, sales growth, and dividend policy on company value. International Journal of Financial, Accounting, and Management, 3(2), 165-178.
  42. Lumbantobing, R. (2020). The Effect of Financial Ratios on the Possibility of Financial Distress in Selected Manufacturing Companies Which Listed in Indonesia Stock Exchange. Paper presented at the Proceeding of the 6th Annual International Conference on Management Research (AICMaR 2019). Advances in Economics, Business and Management Research.
  43. Mathur, N., Tiwari, S. C., Ramaiah, T. S., & Mathur, H. (2021). Capital structure, competitive intensity and firm performance: an analysis of Indian pharmaceutical companies. Managerial Finance.
  44. Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297.
  45. Mufidah, M. (2018). Pengaruh Asset Growth, Sales Growth, Net Profit Margin, Current Ratio dan Debt To Equity Ratio terhadap Dividend Payout Ratio pada Perusahaan yang Termasuk dalam Indeks Lq 45 Tahun 2013–2016. J-MAS (Jurnal Manajemen dan Sains), 3(1), 12-25.
  46. Muriithi, J. G., Muturi, W. M., & Waweru, K. M. (2016). The effect of market risk on financial performance of commercial banks in Kenya.
  47. Myers, S. C. (1977). Determinants of corporate borrowing. Journal of financial economics, 5(2), 147-175.
  48. Narkabtee, N. (2000). Earnings: Quality means everything: New York: Mc Graw-Hill.
  49. Nenu, E. A., Vintil?, G., & Gherghina, ?. C. (2018). The impact of capital structure on risk and firm performance: Empirical evidence for the Bucharest Stock Exchange listed companies. International Journal of Financial Studies, 6(2), 41.
  50. Nugraha, R., & Bayunitri, B. I. (2020). The influence of internal control on fraud prevention (Case study at Bank BRI of Cimahi City). International Journal of Financial, Accounting, and Management, 2(3), 199-211.
  51. Ogbonnaya, A., Ekwe, M., & Uzoma, I. (2016). Relationship of cash flow ratios and financial performance of listed banks in emerging economies–Nigeria example. European Journal of Accounting, Auditing and Finance Research, 4(4), 89-97.
  52. Onuora, J. K., & Obia, C. E. (2018). Effect of Financial Leverage on Firms’ Financial Performance: A Study of Listed Companies in Agricultural Sector. Journal of Economics and Sustainable Development, 9(2).
  53. Osagie, O. (2016). Firm size, age and operating cash flow: empirical standpoint on Nigerian banking sector. International Journal of Advanced Academic Research Social & Management Sciences, 2(8), 95-103.
  54. Osegbue, I. F., Nweze, A., Ifurueze, M., & Nwoye, C. M. (2018). Effects of tax sheltering on earnings management in Nigeria. Research Papers in Economics and Finance, 3(2), 45-69.
  55. Panda, A. K., & Nanda, S. (2018). Working capital financing and corporate profitability of Indian manufacturing firms. Management Decision.
  56. Pandey, I. M. (2015). Financial Management (Eleventh Edition) (5th or later edition ed.).
  57. Pillai, A. A., & Kaushal, U. (2020). Research Methodology-An Introduction To Literary Studies. Central Asian Journal Of Literature, Philosophy And Culture, 1(1), 1-11.
  58. PRASETIONO, G. (2016). PENGARUH PENERAPAN MANAJEMEN RISIKO BISNIS TERHADAP PROFITABILITAS PERUSAHAAN PEMBIAYAAN TERCATAT DI BURSA EFEK INDONESIA PERIODE 2010-2015. Universitas Mercu Buana.
  59. Putra, D. H. (2021). Pengaruh Likuiditas, Kualitas Aset dan Efisiensi terhadap Profitabilitas pada Bank Umum Syariah. STIE Perbanas Surabaya.
  60. Rahmawati, Y., & Hadian, H. N. (2022). The influence of Debt Equity Ratio (DER), Earning Per Share (EPS), and Price Earning Ratio (PER) on stock price. International Journal of Financial, Accounting, and Management, 3(4), 289-300.
  61. Ross, A. D. (2010). A virtuous cycle: Tracing democratic quality though equality: Texas A&M University.
  62. Seth, H., Chadha, S., Ruparel, N., Arora, P. K., & Sharma, S. K. (2020). Assessing working capital management efficiency of Indian manufacturing exporters. Managerial Finance.
  63. Shabrina, W., & Hadian, N. (2021). The influence of current ratio, debt to equity ratio, and return on assets on dividend payout ratio. International Journal of Financial, Accounting, and Management, 3(3), 193-204.
  64. Siyanbola, T. T., Olaoye, S. A., & Olurin, O. T. (2015). Impact of gearing on performance of companies. Arabian Journal of Business and Management Review (Nigerian Chapter), 3, 68-80.
  65. Susanti, N., Latifa, I., & Sunarsi, D. (2020). The Effects of Profitability, Leverage, and Liquidity on Financial Distress on Retail Companies Listed on Indonesian Stock Exchange. Jurnal Ilmiah Ilmu Administrasi Publik, 10(1), 45-52.
  66. Titman, S. (1984). The effect of capital structure on a firm's liquidation decision. Journal of financial economics, 13(1), 137-151.
  67. Udoayang, J. O., Uwah, U. E., & Asuquo, A. I. (2020) Optimizing Return on Assets through Investment in Property, Plant and Equipment: Evidence from Listed Nigerian Manufacturing Companies. International Journal of Management and Humanities (IJMH), 4(10), 50-57.
  68. Uremadu, S. (2004). Financial Management and Investment Decisions: Concepts, Analysis and Applications: Precision Publishers.
  69. Wahyudi, I. (2011). Analysis of effect of leverage and cash flow today on future financial performance of Indonesian public company: Signaling theory vs. the Pecking Order theory. The Pecking Order Theory.
  70. Yusuf, S. I., Mwakubo, S. M., & Mwakachola, S. N. (2019). The Effect of Capital Structure Gearing Levels on Financial Performance of Public and Private Sector Firms in Kenya’s Coastal Counties. International Journal of Economics and Finance, 11(3), 99-126.