THE EFFECT OF CAPITAL STRUCTURE ON FIRM EFFICIENCY


Guliyev R., Najafov S.

37th International Scientific Conference on Economic and Social Development - Socio Economic Problems of Sustainable Development, Baku, Azerbaijan, 14 - 15 February 2019, pp.328-331 identifier

  • Publication Type: Conference Paper / Full Text
  • City: Baku
  • Country: Azerbaijan
  • Page Numbers: pp.328-331
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

Paper considers the impact of cash, debt, trade credit and equity financing on firm efficiency. Paper argues that 1) cash holding negatively affects firm efficiency, 2) debt and trade credit have both positive and negative impact on efficiency, 3) debt and trade credit are more conducive to increasing efficiency than cash holding, 4) trade credit is more conducive to increasing efficiency than debt and 5) the strongest positive impact on efficiency is provided by equity financing.