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How Are The Decisions And Performance Of Businesses Within The Utilities Industry Shaped By The Issuance Of Debt?, Jasmine Alexander
How Are The Decisions And Performance Of Businesses Within The Utilities Industry Shaped By The Issuance Of Debt?, Jasmine Alexander
Honors College Theses
This study explores how companies within the utilities industry choose to finance their companies through debt vs. equity. Results from regression analysis show that debt has a significantly greater negative impact on business performance, when compared to the use of equity. This leads to a conclusion that companies tend to utilize equity financing when faced with a positive outlook for their business performance. Conversely, companies utilize debt more when faced with a negative outlook regarding business performance.