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The Impact of Leverage on Financial Performance of Tunisian Quoted Firms

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  • Mohamed Aymen Ben Moussa
  • Amira El Feidi

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.

Suggested Citation

  • Mohamed Aymen Ben Moussa & Amira El Feidi, 2023. "The Impact of Leverage on Financial Performance of Tunisian Quoted Firms," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 101-116.
    • Handle: RePEc:ers:ijebaa:v:xi:y:2023:i:4:p:101-116
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    More about this item

    Keywords

    Financial leverage; financial performance; firms; panel; ROA; Tunisian stock exchange; ROE.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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