Does the institutional framework affect the relationship between debt financing and firm performance in emerging countries?

Abstract

This paper investigates the impact of debt financing on firm performance and how this relationship is affected by the institutional framework in 14 emerging countries. The results show a negative relationship between debt financing and firm performance. However, this negative relationship is reversed in countries with better credit market regulations and more efficient legal systems. © 2021 Elsevier B.V., All rights reserved.