THE IMPACT OF LEVERAGE ON FINANCIAL PERFORMANCE OF TUNISIAN QUOTED FIRMS
Keywords:
Financial leverage, financial performance, firms, panel, ROA, Tunisian stock exchange, ROEAbstract
Financial leverage is important to meet the requirements of firms and increase the investments. Leverage indicate the possible probability of growth and the ambitions of directors. On the other hand financial performance is necessary to ameliorate the management of firm by increase their revenues and decrease his expenses. This study attempts to understand the relationship between financial leverage and financial performance of Tunsian firms. By applying a panel static for a sample of 30 firms quoted in Tunsiian stock exchange for the period (2016...2021) we found that leverage has a positive impact on ROA but negative impact on ROE