| Popis: |
This paper studies the eects of dierent financing possibilities on performance of firms before and during the recent crisis, using a large panel of Slovenian companies for the period between 2001 and 2011. We find a significant negative eect of leverage on firm performance. The estimated negative eect is stronger in the pre-crisis period, when taking into account the reverse causality between financial leverage and firm performance. In addition, we find that firms that had some foreign debt financing performed better than their counterparts. At the same time, the presence of foreign debt amplifies the negative eect of total leverage on firm performance. These findings remain largely unchanged when looking at subsamples with domestic and foreign firms only. |
