Debt-heavy firms face lower performance, impacting tech industry competitiveness.
The article explores how a company's mix of debt and equity affects its performance. By studying 548 tech firms from 2017-2020, the researchers found that having too much or too little debt can harm a company's return on equity and market performance. Short-term and long-term debt were linked to lower return on assets. In general, the study shows that a company's capital structure can impact its overall performance.