The relationship between financial leverage and firm performance during covid-19: evidence in Vietnam

Abstract

Studies on the relationship between financial leverage and firm performance are important for investors and business managers. From the above fact and the desire to understand the relationship between financial leverage and the firm performance of the business, the authors conduct a quantitative analysis of this relationship. The topic that the authors studied was the relationship between financial leverage and the firm performance of non-financial enterprises listed on the stock market in Vietnam during COVID-19. Using variables collection panel data from the financial statements of 276 listed non-financial enterprises over a six-year period from 2016 to 2021. We explored the relationship between financial leverage and firm performance by using Stata 16 software to implement a regression model. The results of the analysis show that financial leverage has an inversely correlated relationship with the firm performance of the business. Thereby, it also forms management implications, making more valuable contributions to not only businesses but also other researchers.