Explaining the Impact of Financial Leverage on Firm Performance in the Healthcare Sector in Sri Lanka by Fixed Cost Coverage Ratio

Chamil W. Senarathne; Tissa Ravinda Perera

doi:10.1515/mosr-2021-0014

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Explaining the Impact of Financial Leverage on Firm Performance in the Healthcare Sector in Sri Lanka by Fixed Cost Coverage Ratio

Management of Organizations: Systematic Research

Volume 86 (2021): Issue 1 (December 2021)

By: Chamil W. Senarathne and Tissa Ravinda Perera

Open Access

|Mar 2022

Abstract

This paper finds that there is a significant negative relationship between financial leverage and firm performance in the healthcare industry in Sri Lanka. Furthermore, the fixed cost coverage by the utilization of fixed and operational assets is positively and significantly related to firm performance.

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Articles in this issue

DOI: https://doi.org/10.1515/mosr-2021-0014 | Journal eISSN: 2335-8750 | Journal ISSN: 1392-1142

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Language: English

Page range: 77 - 91

Submitted on: Jun 5, 2021

Accepted on: Dec 10, 2021

Published on: Mar 17, 2022

Published by: Vytautas Magnus University, Faculty of Economics and Management

In partnership with: Paradigm Publishing Services

Publication frequency: 2 issues per year

Keywords:

financial leverage,

financial performance,

capital structure,

debt to equity ratio,

healthcare sector

Related subjects:

Business and economics,

Business management,

Marketing, sales, customer relations,

Management, organization, corporate governance,

Business development, change management, cooperation,

Human resources, labor practice, job and career

© 2022 Chamil W. Senarathne, Tissa Ravinda Perera, published by Vytautas Magnus University, Faculty of Economics and Management
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Volume 86 (2021): Issue 1 (December 2021)