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Journal of Finance & Economics Research - Volume 7, Issue 1 2022
By Faiz Aleem
10.20547/jfer2207105
Keywords: Financial leverage, investment decisions, cash flows, Tobins-q, ROA, sales, robust random effect.
The present paper aims to investigate the impact of financial leverage on the investment decisions of the automobile sector. Data was gathered from the top 10 publicly listed automotive companies of Pakistan during the time period of 2010 to 2020. By employing the robust random effect model technique, it is found out that financial leverage has a significant and positive impact on the investment decisions of the automotive firms. Besides, the other factors also influence the investment decisions of the firms. In the end, this paper suggests several substantive implications for automobile industry to improve their investment decisions.
Submission Date: 15 Oct, 2021 Reviews Completed: 21 Dec, 2021Acceptance Date: 10 Jan, 2022 Publication Date: 13 Jan, 2022