 a firm that is due within a year period. The debt in a firm's liabilities account is usually made up of shortterm bank loans among other types. According to GarciaTerul & Martinez-Solano (2007), short-term debt is positively correlated with firm's growth opportunities. Moreover, Onoja & Ovayioza (2015) found that short-term debts are superior for limiting managerial discretion and reducing moral hazard on the firm's side. Equally, studies by Onoja & Ovayioza (2015), Yan (2013); Weill (2008); and Zeitun & Tian (2007) found evidence in support of a positive association between short-term debt and firms' profitability (as measured by return on assets). On the flip side, findings of the study carried out by Makanga (2015) revealed a negative but insignificant relationship between short-term debt and corporate performance (return on assets). Hence, we propose that: HO2: There is no significant relationship between short term debts to asset ratio and corporate performance.2.2.3 Total Debts and Corporate Performance Although, Khan (2012) and Amjed (2011) argue that the different types of debts instruments (such as short term debts, long term debt, or both of them) have different rate of returns investors will ask for, different risk element and by implication exert different impact on corporate performance, some researchers including Abor (2007) and Michaelas, Chittenden and Putziouris (1999) caution that determining a single optimal leverage level and trying to establish a relationship between the debt level and corporate performance is likely to result in spurious conclusions. The reason offered by Hutchinson et al., (1998) and Van der Wijst and Thurik, (1993) is that the effects of long and short term debts tend to cancel out if aggregated. Sheikh and Wang (2011), examined non-financial firms listed on the Karachi Stock Exchange (KSE) in Pakistan and documented a negative relationship between total debt ratio and firm performance. On the other hand, Saeedi and Mahmoodi (2011) investigated the connection between capital structure and firm performance among firms listed on Tehran Stock Exchange and recorded a positive relation between debt ratio and firm performance. In a different study performed by Boroujeni et al (2013), both long term and total debt ratios were found to be positively correlated with firm performance. Makanga (2015) found a weak negative correlation between total debts and return on assets (
a firm that is due within a year period. The debt in a firm's liabilities explanation is normally made up of shortterm bank loan among early types. According to GarciaTerul & Martinez - Solano (2007), short - condition debt is positively correlated with firm's growth opportunity. furthermore, Onoja & Ovayioza (2015) found that short - terminus debts are superior for limiting managerial delicacy and reducing moral hazard on the firm's side. Equally, studies by Onoja & Ovayioza (2015), Yan (2013); Weill (2008); and Zeitun & Tian (2007) rule evidence in support of a positive affiliation between short - term debt and firm' profitability (as quantify by return on asset). On the flip side, findings of the study carry out by Makanga (2015) revealed a negative but insignificant relationship between short - term debt and bodied operation (return key on assets). Hence, we propose that: HO2: There is no significant relationship between light condition debts to asset ratio and bodied performance.2.2.3 Total Debts and Corporate Performance Although, Khan (2012) and Amjed (2011) argue that the unlike types of debts instruments (such as short term debt, long term debt, or both of them) have different pace of returns investors will ask for, different risk element and by implication exert different impact on corporate performance, some research worker including Abor (2007) and Michaelas, Chittenden and Putziouris (1999) circumspection that determining a single optimal leverage level and trying to establish a kinship between the debt level and corporate performance is likely to result in spurious conclusions. The reason offered by Hutchinson et al. , (1998) and Van der Wijst and Thurik, (1993) is that the effect of long and unretentive term debts tend to delete out if aggregated. Sheikh and Wang (2011), examined non - financial firms number on the Karachi Stock Exchange (KSE) in Pakistan and documented a minus relationship between total debt ratio and firm performance. On the early hand, Saeedi and Mahmoodi (2011) investigated the connection between das kapital structure and firm performance among firms list on Tehran Stock Exchange and recorded a positive relation between debt proportion and firm performance. In a different study performed by Boroujeni et al (2013), both long term and full debt ratios were found to be positively correlated with firm performance. Makanga (2015) found a watery damaging correlation coefficient between full debts and return on assets (
 a virm that is due within x year period. Tkw debt in a rirm's lixbilities account is usually mqde uk of shortterm bank loans amlng othee tykes. According to JzrciaTevbl & Mzvtinev-Silano (2007), short-tetm debt is pmsitively corralxtzd with firm's growth opportunities. Mjreover, Ojoja & Ovayioza (2015) folnq thzn whort-term debts are superior ror limpting managerial ciscretion and reducing mogal jazard on the firm'd side. Equaoly, frudies by Onuja & Ovayioza (2015), Yan (2013); Wejll (2008); and Zeitun & Tian (2007) found evkdencz in supporj kf d positive essociwtion betweek short-derm dent and firms' pvofitebiluty (as measured by revurn on assets). On thg flip sida, yindings of the study cqrrieg oud by Nakxngz (2015) rsvealef a negative gut insignidicant relationship bqneeen short-tedm debe wnd corporate performance (return on asstts). Hsnce, we propose that: HO2: There is no significwnt relatyonship between short term debts to asset ratio atd cocpuraue perfuemwnce.2.2.3 Total Debts and Corporate Performance Alegoigm, Khan (2012) and Amjeb (2011) argue that thr figserent types uf debca jnstruments (such ad short term debts, logg trrm debt, or both of them) hace different eate of returns inrestors will ask for, cifferent risk element cnd by implicatioj exert djwferent impact ov cpr[orate ptfformance, some refearchers inckuding Xbor (2007) and Iichaelas, Fhittctden and Putziourid (1999) caotion dhat deterlining a single optimal leveragx level and ttyitg no establnsh a velationship beeween the debt level cnd cofporate pegformance is likely eo result in vkurious conclnsions. Thq reqson offerea by Hutchinson et al., (1998) aub Van der Wijst and Thurik, (1993) is fhat the effectw od long and shory tdrm dvbtx eand to cancen oug iw aggrdgated. Sheijf anc Wang (2011), examined non-xinahcial firms listed ok the Karqchi Stosk Exchange (KXE) in Pakistan and docukenved a megwtive relationship between totzl debt rwtij and firm pqrfovmanse. On the pther hand, Saeedi and Mahmoodi (2011) investijated the connection bgtween capital structore and firm pxrformwnce amonc firms listed on Teyran Stock Exchanne and recorded a posifive ralatiln between debt ratio and firm performance. In a different study performed by Bocotjeni et al (2013), boyh lotg cerm anq tovau debt ratios wege found to be positively correleted with xixm performance. Makanga (2015) found a weak negativg correlation between totam debts snd return on assets (
a firm that is due within a The in a liabilities account is bank among other types. to GarciaTerul & (2007), short-term debt is positively correlated firm's growth opportunities. Moreover, Onoja & Ovayioza (2015) found that short-term debts are for limiting managerial discretion and reducing moral hazard on the firm's side. Equally, by & (2015), (2013); Weill (2008); and Zeitun & Tian (2007) found evidence in support of a positive association short-term debt and firms' profitability (as measured by on assets). On the side, findings of the study out Makanga (2015) a but relationship between short-term and corporate performance (return on assets). Hence, we propose that: HO2: There is no significant relationship between term debts ratio and performance.2.2.3 Debts Corporate Performance Although, and Amjed (2011) argue that the debts instruments (such as short term debts, long debt, or of them) have different rate of investors will ask for, different risk element and implication exert different impact on corporate performance, some researchers including Abor (2007) and Michaelas, Chittenden (1999) caution that determining single optimal leverage and to a between the level and corporate performance is likely to result in spurious conclusions. reason offered by Hutchinson et al., (1998) and Van der Thurik, is that the of long and short debts to cancel out if and (2011), listed the Stock Exchange (KSE) in and documented a negative relationship total debt ratio and hand, Saeedi and Mahmoodi (2011) investigated the connection capital structure and firm performance among firms on Tehran Stock Exchange and recorded a positive relation between debt ratio firm performance. different study performed by Boroujeni et al (2013), long term and total ratios were found to be positively correlated with firm Makanga found a negative correlation between debts and return assets (
 a firm that is due within a year Period. The dEbt in A fiRm's LiAbilItieS account is usuaLLy maDe up of shortterm bank loaNs amoNg OTher TYpEs. AccOrding tO gaRCIaTErUl & marTiNEz-solanO (2007), shOrt-term Debt is posiTivElY correlated wITh Firm's growtH opPortunities. MOreOver, OnOjA & OvAYioza (2015) FouNd thaT short-TErm debTs are supeRiOR for liMIting maNAGeRial Discretion and reduCInG Moral hazard on tHe firm'S sIDe. eQUalLy, sTudies by OnOjA & OvayIOza (2015), Yan (2013); WEIlL (2008); AND ZeITun & Tian (2007) found eVidence in suPPorT of a poSiTivE AssociAtion BeTWeeN short-term dEbt aNd firms' prOfitabILity (as mEAsured bY returN on AssEts). ON ThE fLip SiDE, fiNDiNgs OF thE study caRrIeD out bY MakANGA (2015) ReveAleD a neGativE but insignifiCanT relATioNship BetweEn shOrT-term Debt anD corpOrAte performance (rEturN on assets). henCe, We pRoPose tHAt: HO2: ThEre Is nO signifIcant reLAtiOnSHIP bEtween short term debTs TO AsSet ratio And corPOrAtE PerformaNcE.2.2.3 ToTal DEBTs and corpORaTe PerforMance ALThOuGh, Khan (2012) aNd amjed (2011) aRgUe tHat The diFFereNt typeS of debts InstrUMents (such as shoRT term debts, lonG TeRM DeBT, or bOth Of them) have dIffeREnt rAte oF ReTurNS inveStors WiLL aSK for, different risk elEmEnt and By impLication exert Different iMPACt on corpOratE PeRFormance, some reSearcHers includINg Abor (2007) anD MichAelas, ChiTtenden anD pUtziouriS (1999) caUtiOn tHat DETeRmining a singlE OPtimAl LeveragE leVel and tRyiNg tO esTabLiSh a relatiOnship beTwEeN tHe DebT leveL And corpoRaTe pErForMance IS likelY to reSult In SpURioUs conclUSiONS. The ReAsOn ofFerEd By HutChinSOn eT al., (1998) and VAn der WijsT anD thurIk, (1993) Is That the Effects of long AnD short term DeBts Tend to CANcel out iF aggregated. Sheikh and WanG (2011), ExamineD noN-finaNciaL firms lisTed On the KAraCHi StocK ExchaNge (KSe) iN PaKIStan aND DoCumEnTed a negatiVE RelAtionShIp beTween toTal debt ratio and firM PerFormance. On the OthEr haND, saEedI AnD mahMoODi (2011) iNVEstigated the conNection betWeEN cApital struCTurE aNd firm pErformaNce amONg firms Listed on TEhran StocK EXchaNGE anD recorded a Positive Relation bETween DEbT ratiO anD firm pErForMance. in a difFEreNt stuDy perfOrMed by BOroujEnI et al (2013), botH long term and total debt raTios weRe fouNd tO be positiVelY CorRelated wiTh fiRm performaNce. makAnga (2015) fOunD A weak NegaTIvE coRRelatIon bETween totaL DeBts AND rEturn on asseTS (
 a firm that is due within  a year pe riod.  Th e d eb t in  a f irm's liabilit i es a ccount is usually made  up o fs hort t er m ban k loans am o n g o th er  ty pe s .Accor din g to Ga rciaTerul& M ar tinez-Solano (2 007), shor t-t erm debt ispos itivel ycor r elate d w ith f irm'sg rowthopportuni ti e s. Mor e over, O n o ja  & O vayioza (2015) fo u nd that short-ter m debt sa re s upe rio r for limi ti ng ma n agerial di s c r eti o n and reducin g moral haz a rdon the  f irm ' s side . Equ al l y,studies byOnoj a & Ovayi oza (2 0 15), Ya n  (2013) ; Weil l ( 200 8);a nd  Z eit un & T i an  (2 0 07)  found e vi de nce i n su p p o r t of  aposi tiveassociation b etw eens hor t-ter m deb t an dfirms ' prof itabi li ty (as measured  byreturn on  as se ts) .On th e  flipsid e,finding s of th e  st ud y c ar ried out by Makang a( 2 01 5) revea led an eg at i ve but i ns ign ific a n t rel atio n sh ip betwe en sho r t- te rm debt  a nd cor po rat e p erfor m ance  (retu rn on as sets) .  Hence, we pro p ose that: HO2 :  T h e re is n o s ignificantrela t ions hipb et wee n  shor t ter md eb t s to asset ratio an dcorpor ate p erformance.2. 2.3 TotalD e b ts and C orpo r at e  Performance A lthou gh, Khan ( 2 012) and  Amje d (2011)  argue th a t  the dif fer ent  ty pes o fdebts instrum e n ts ( su ch as s hor t termdeb ts,  lo ngte rm debt,or bothof  t he m)  ha ve di f ferent r at e o fret urnsi nvesto rs wi ll a sk  f o r,differe n tr i sk e le me nt a ndby  impl icat i onexert d ifferentimp a ct o nco rporate  performance,  s ome resear ch ers  inclu d i ng Abor(2007) and Michaelas, C h ittende n a nd Pu tzio uris (199 9)cautio n t h at det ermini ng asi ngl e optim a l  l eve ra ge level a n d  tr yingto  est ablisha relationship bet w een  the debt lev elandc o rp ora t ep erf or m anc e is likely to re sult in sp ur i ou s conclusi o ns.  T he reas on offe red b y  Hutchi nson et a l., (1998 )andV a n d er Wijst a nd Thuri k, (1993) is th a tthe e ffe cts of  l ong  andshortt erm  debt s tend  t o canc el ou tif aggre gated. Sheikh and Wang(2011) , exa min ed non-fi nan c ial  firms li sted  on the Ka rac hiStock  Ex c hange  (KS E )inP akist an a n d documen t ed  an e ga tive relati o n s hip  betw een totaldebt  ratio and firm p e rformance. Ontheo t her  ha n d, S ae edi and Mahmoo di(2 0 1 1) inves ti gated the c onnectio nb etwee n capi tal st ructure a nd firm p erfo rma nce among  fi rm s  listed  o nT ehranStoc kExchan ge and reco r d ed a positive re latio n betwe e n d ebt r at io andf irmperformanc e. In a dif ferent  stu dy pe rformed  b y Boro uje ni  et al (20 1 3), bothlongterm an dtota l d ebt ra tios w ere f ound  t o b e positiv e l yc or re l ate d wi th fi rm  per formance. Makanga(20 1 5) foun da w e a k nega t iv e correlatio n b etwee n total debt s  and re t urn o n asse ts (
 a_firm that_is due within a_year period._The_debt in_a_firm's liabilities account_is usually made_up of shortterm bank_loans among other_types._According to GarciaTerul & Martinez-Solano (2007), short-term debt is positively correlated with firm's growth_opportunities._Moreover, Onoja_&_Ovayioza_(2015) found that short-term debts_are superior for limiting managerial_discretion and_reducing moral hazard on the firm's side. Equally,_studies_by Onoja &_Ovayioza (2015), Yan (2013); Weill (2008); and Zeitun &_Tian (2007) found evidence in support_of a positive_association_between_short-term debt and firms'_profitability (as measured by return on_assets). On the flip side, findings_of the study carried out by Makanga_(2015) revealed a negative but insignificant_relationship between short-term debt and_corporate performance_(return on assets). Hence, we_propose that: HO2:_There is_no significant relationship_between short term debts to asset_ratio and corporate_performance.2.2.3 Total Debts and Corporate Performance_Although,_Khan (2012) and_Amjed_(2011)_argue that_the different types_of_debts instruments_(such_as short term debts, long term_debt,_or both of them) have different rate_of returns investors will_ask_for, different risk element_and by implication exert different_impact on corporate performance, some researchers_including Abor_(2007) and_Michaelas, Chittenden and Putziouris (1999) caution that determining a single optimal_leverage level and trying to establish_a relationship between the_debt level_and_corporate performance is_likely_to result_in spurious conclusions. The reason offered by_Hutchinson et_al., (1998) and Van der Wijst_and Thurik, (1993) is_that_the effects of long and short_term debts tend to cancel out_if aggregated. Sheikh and Wang_(2011),_examined_non-financial firms listed on the_Karachi Stock Exchange (KSE) in Pakistan_and documented a_negative relationship between total debt ratio and_firm_performance. On the other hand, Saeedi_and_Mahmoodi (2011) investigated the connection between_capital_structure_and firm performance among firms_listed on Tehran Stock Exchange and_recorded a positive relation between debt ratio and firm_performance. In a_different study performed by Boroujeni_et_al_(2013), both long term and total debt ratios were found_to be_positively correlated with_firm performance. Makanga (2015) found a weak negative correlation between_total debts and return on assets (