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THE RELATIONSHIP OF CORPORATE GOVERNANCE DECISION ON CAPITAL STRUCTURE AND COMPANY’S PERFORMANCE: EVIDENCE FROM LITHUANIAN FOOD AND BEVERAGES INDUSTRY COMPANIES

Economics and Management

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Title THE RELATIONSHIP OF CORPORATE GOVERNANCE DECISION ON CAPITAL STRUCTURE AND COMPANY’S PERFORMANCE: EVIDENCE FROM LITHUANIAN FOOD AND BEVERAGES INDUSTRY COMPANIES
 
Creator Norvaišienė, Rasa; Kaunas University of Technology
Stankevičienė, Jurgita; Kaunas University of Technology
 
Subject signaling theory; corporate governance; capital structure; company’s performance
 
Description Capital structure is the problem regularly approached in theoretical and empirical studies; however it does not give any consensus whether the growing use of loan capital leads to increase or decrease in the efficiency of company’s performance. Many of the empirical researches evidenced that the capital structure has a significant negative impact on the efficiency of corporate performance; some studies showed a positive relationship. The results of our research confirmed the results of first studies: all the selected ratios of capital structure negatively correlated with the efficiency of the company's performance. Since it was established a significant relationship, we conclude that the performance efficiency is related to debt level to a large extent. Moreover, the capital raised in this way did not condition more effective performance and is not associated with the implementation of fast-track, profitable projects, that would allow these companies to ensure the growth of performance efficiency.DOI: http://dx.doi.org/10.5755/j01.em.17.2.2170
 
Publisher Kaunas University of Technology
 
Contributor —
 
Date 2012-08-17
 
Type —
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Format application/pdf
 
Identifier http://www.eejournal.ktu.lt/index.php/Ekv/article/view/2170
10.5755/j01.em.17.2.2170
 
Source ECONOMICS AND MANAGEMENT; Vol 17, No 2 (2012); 480-486
EKONOMIKA IR VADYBA; Vol 17, No 2 (2012); 480-486
 
Language en
 
Rights Autorių teisės yra apibrėžtos Lietuvos Respublikos autorių teisių ir gretutinių teisių įstatymo 4-37 straipsniuose.
Copyright terms are indicated in the Republic of Lithuania Law on Copyright and Related Rights, Articles 4-37.