The Impact of Financial Leverage on a Company’s Market Valuation

The purpose of the article is to examine impact leverage on market valuation companies. verifies two hypotheses: 1. degree an important factor that impacts companies; 2. for companies with a high level leverage, this their negative, and low positive.
 methodology study includes critical literature review empirical research based correlation regression analysis, including univariate multivariate regression. analysis covered quarterly data ten energy listed Warsaw Stock Exchange. An component was classifying those into several groups, depending debt ratio in relation industry median ratio.
 results research: did not provide unequivocal conclusion problem. give grounds reject first hypothesis; however, second one rejected. showed positive coefficients between price book value highly leveraged negative ones debt. are surprisingly contrary expectations theoretical premises.