Theoretical Analysis and Hypotheses BuildingThis chapter gives detailed explanations about the theory and literaturerelated the hypotheses-building of the research. There are 8 investigated factors inrelation to firm performance, i.e. leverage, liquidity, depreciation, investment, size,age, location, and ownership. Age of the company is started when it is found incertain locations, usually close to the customer or resources (Lucky, 2012).Establishing a company, the founders required capital in the form of equity fromthe investors, this situation will be represented by ownership, even though overtime it could be changed by corporate action.
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