Providing Performance Business Activity In Canadian Companies

Kateryna Oryekhova, Sanan Shabanov


This  publication  investigated  the impact  of  capital  structure  choice  on  firm  per-formance activity in Canada. Short-term, long-term and total debt ratios were employed as capital structure determinants. In order to estimate regression properly, control variables were taken, such as firm size, growth, asset tangibility and turnover ratios. Measuring  the  business  activities  effectiveness    in  Canadian  firms  was  performed  using  the  following  indexes:  return  on  assets  (ROA),  return   

on  equity  (ROE),  and  market-based  measure   (Tobin’s Q). According to the results of the regression analysis, it was installed that in Canada capital structure does not impact on ROE; capital structure has an impact on ROA and Tobin’s Q. Proposed  approach  will  allow  increasing  the management  effectiveness  in  Canadian  companies.

Ключові слова

Canada; company; short-term; long-term and total debt ratios; return on assets; return on equity; and market-based measure

Повний текст:



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