Jul 2026· MEST Journal· Vol 14, pp. 121-134· 0 citations
Abstract
This study investigates the influence of key financial variables on the profitability of Algerian firms using panel data from 37 companies spanning 2019–2024. Return on Assets (ROA) and Return on Equity (ROE) serve as dependent variables, while long-term debt ratio, financial leverage, liquidity, and firm size constitute the primary explanatory factors. Panel regression analysis reveals a significant negative association between long-term debt and ROA, indicating reduced asset efficiency under high indebtedness, whereas firm size exerts a positive effect on both profitability measures. Liquidity shows no significant impact, and financial leverage displays mixed effects across models. Robustness is confirmed through comprehensive diagnostic tests including heteroskedasticity, autocorrelation, and multicollinearity assessments. These findings offer critical implications for financial decision-making and policy formulation within Algeria's dynamic business environment. The analysis employs fixed effects models to control for firm-specific heterogeneity, providing reliable evidence on debt-profitability dynamics in an emerging market context. Such insights aid managers in optimizing capital structures amid economic volatility.
Firm value is a central indicator of investors' expectations regarding a company's capacity to generate sustainable returns, while financial performance provides information about profitability, liquidity, efficiency, capital structure, and risk. In emerging capital markets, the extent to which these financial characte...
M. Ben Moussa· ECONOMICS, FINANCE AND MANAG...· 0 citations
A firm’s Financial performance serves as a primary metric for assessing its efficiency in leveraging assets to yield profits. Robust corporate governance is hypothesized to bolster this Financial performance by fostering superior oversight and facilitating strategic decision-making. This research investigates the impac...
Cindy Stevani Tanujaya, F. Kristanti· Owner· 0 citations
This study evaluates the impact of capital structure on the financial performance of quoted
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term debt, short-term debt, and debt-to-e...
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