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The Impact of Financial Leverage and CSR on the Corporate Value: Egyptian Case

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  • Yasmeen Tarek

Abstract

The study aimed to analyze the effect of the capital structure of the corporate and its interference in corporate social responsibility activities on the firms corporate value during the time period from 2014-2017 the study tested the effect of financial leverage and CSR on the corporate value of the firms by testing 17 companies registered in the indicator of CSR in the Egyptian stock market through applying panel data analysis. After testing the effect of both variables together the study found that there is significant effect of financial leverage on corporate value while applying CSR activities has no effect on the corporate values which means that there is a lack in the awareness of investors about the importance of applying CSR activities in Egypt.

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  • Yasmeen Tarek, 2019. "The Impact of Financial Leverage and CSR on the Corporate Value: Egyptian Case," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(4), pages 74-81, April.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:4:p:74-81
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    References listed on IDEAS

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    1. Shenggang Yang & Feiying He & Qi Zhu & Shihao Li, 2018. "How does corporate social responsibility change capital structure?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 25(3-4), pages 352-387, May.
    2. Masulis, Ronald W, 1983. "The Impact of Capital Structure Change on Firm Value: Some Estimates," Journal of Finance, American Finance Association, vol. 38(1), pages 107-126, March.
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    Cited by:

    1. Daniel Ogachi & Zeman Zoltan, 2020. "Corporate Social Responsibility and Firm Value Protection," IJFS, MDPI, vol. 8(4), pages 1-22, November.
    2. Atul Bansal, 2025. "Analyzing the influence of financial leverage on social performance of selected non-financial companies in Bahrain," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 16(1), pages 392-401, January.
    3. Yongfeng Zhang & Peng Wang & Jongwook Kwon, 2021. "CSR in China: Does Being Close to the Central or Local Government Matter?," Sustainability, MDPI, vol. 13(16), pages 1-12, August.
    4. Sara Mohamed Abdelaziz El-Menawy & Nehad Hosny Yusuf El-Sayed, 2024. "Corporate social responsibility marketing; a way to firm performance; an empirical study: case of Egypt," Future Business Journal, Springer, vol. 10(1), pages 1-25, December.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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