The Impact of Leverage on Financial Performance of Tunisian Quoted Firms

Mohamed Aymen Ben Moussa and Amira El Feidi

International Journal of Economics & Business Administration (IJEBA), 2023, vol. XI, issue 4, 101-116

Abstract: Purpose: This study attempts to understand the relationship between financial leverage and financial perofmrance of Tunsian firms. Design/Methodology/Approach: By appling a panel research method for a sample of 30 firms quoted in Tunsiian stock exchange for the period of 2016-2021. Findings: The study found that leverage has a positive impact on ROA but negative impact on ROE. Practical Implications: Financial leverage is important to meet the requirements of firms and increase the investments. Leverage indicates the possible probalbility of growth and the ambitions of the directors. Originality/Value: Financial performance is necessary to ameliorate the management of the firm by increasing the revenues and decrease the expenses.

Keywords: Financial leverage; financial performance; firms; panel; ROA; Tunisian stock exchange; ROE. (search for similar items in EconPapers)
JEL-codes: M40 M41 M42 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:xi:y:2023:i:4:p:101-116

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