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The impact of financial leverage and diversification on the performance of Vietnamese agricultural cooperatives
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Abstract
This paper evaluates the impact of financial leverage and diversification on the performance of Vietnamese Agricultural Cooperatives (Zone 1). On the dataset of 3,584 cooperatives, Zone 1, the estimated regression model (OLS) indicates that financial leverage level positively impacts their business performances, proxied by ROA ratio. However, when the debt/total asset ratio is higher than 42,5%, ROA ratio will be reduced. Moreover, the result also shows that diversified cooperatives have better performance than those of the non-diversified ones.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Keywords
Financial leverage, diversification, business performance, cooperative
References
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