Firms' leverage and labour productivity: a quantile approach in Portuguese firms

Paulo Macas Nunes, Tiago Sequeira, Zelia M. Serrasqueiro

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)

Abstract

We show that the leverage of Portuguese firms tends to negatively affect its tabour productivity for firms with relatively lower tabour productivity but to positively affect this variable for firms in the right-hand side of the productivity distribution. This is particularly important in a country where labour productivity is persistently lower compared with the richer countries in Europe. Thus, we have concluded that, controlling for the usual effects, increasing leverage cannot be a solution for the less productive (and consequently the majority) of Portuguese firms.
Original languageEnglish
Pages (from-to)1783-1788
JournalApplied Economics
Volume39
Issue number13-15
DOIs
Publication statusPublished - 1 Jan 2007

Keywords

  • AGENCY COSTS
  • REGRESSION
  • INVESTMENT

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