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Explaining the Impact of Financial Leverage on Firm Performance in the Healthcare Sector in Sri Lanka by Fixed Cost Coverage Ratio

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  • Senarathne Chamil W.

    (PhD, lecturer/programme leader, Finance, Colombo Institute of Research and Psychology; lecturer, School of Business, Faculty of Business, Colombo Institute of Research and Psychology.; 230 Galle Road, Colombo 04, Sri Lanka.)

  • Perera Tissa Ravinda

    (senior lecturer, Entrepreneurship, University of Colombo; senior lecturer, Department of Management and Organization Studies, Faculty of Management and Finance, University of Colombo.; College House 94, Cumaratunga Munidasa Mawatha, Colombo 03, Sri Lanka.)

Abstract

This paper finds that there is a significant negative relationship between financial leverage and firm performance in the healthcare industry in Sri Lanka. Furthermore, the fixed cost coverage by the utilization of fixed and operational assets is positively and significantly related to firm performance.

Suggested Citation

  • Senarathne Chamil W. & Perera Tissa Ravinda, 2021. "Explaining the Impact of Financial Leverage on Firm Performance in the Healthcare Sector in Sri Lanka by Fixed Cost Coverage Ratio," Management of Organizations: Systematic Research, Sciendo, vol. 86(1), pages 77-91, December.
    • Handle: RePEc:vrs:morgsr:v:86:y:2021:i:1:p:77-91:n:7
    DOI: 10.1515/mosr-2021-0014
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