The influence of competitive environment and business strategies on the relationship between firm's financial leverage and performance

This study is concerned to investigate the influence of competitive environment and business strategies on the relationship between firm's financial leverage and performance.135 firms listed in TSE as samples during 1381-1388 were selected. Results corroborate not only there were negative and significant relation but also industrial competitive intensity and business strategy had an influence significantly. These influences on firms with cost leadership strategy were further than firms with product differentiation strategy. Furthermore impact of industrial competitive intensity on relationship between financial leverage &performance was positivelysignificant. Generally, firms with product differentiation strategy and active in high competitive intensity environment have the most impact on the relationship between financial leverage & performance. Meanwhile, other pair as to strategy and competitiveness had less impact on that relationship.