Non-linearity in debt and return relationship: evidence from dynamic panel threshold method

• Main Authors: Matemilola, Bolaji Tunde, Amin Noordin, Bany Ariffin, Wan Ngah, Wan Azman Saini, Md Nasir, Annuar
• Format: Article
• Language: English
• Published: Asian Network for Scientific Information 2016
• Online Access: http://psasir.upm.edu.my/id/eprint/53393/1/Non-linearity%20in%20debt%20and%20return%20relationship.pdf; http://psasir.upm.edu.my/id/eprint/53393/; http://scialert.net/abstract/?doi=jas.2016.438.444
• Institution: Universiti Putra Malaysia

Background and objective: Moderate debt usage increases returns during economic boom, but high debt could decreases returns during economic recession. This study examines if there is a threshold debt level in the debt-returns relationship. Methodology: This study applies dynamic panel-threshold meth...