Determinants of Financial Performance of Listed Companies on the Algiers Stock Exchange: An Econometric Study Using Panel Data Analysis
Abstract
Using panel data from 2015 to 2023, this study investigates the factors that influence financial performance among businesses listed on the Algiers Stock Exchange. We examine four significant publicly traded companies: Alliance Assurances, Biopharm SPA, EGH El Aurassi, and Saidal, using Return on Assets (ROA) as the main indicator of financial performance. We examine how different firm-specific factors, such as capital structure (total debt ratio, long-term debt ratio), firm size, asset tangibility, growth rate, liquidity, and firm age, affect financial performance using panel data econometric techniques, such as pooled OLS, fixed effects, and random effects models.
The findings indicate that ROA and firm size, liquidity, and age have significant correlations, but the effects of debt structure variables are not entirely clear. Policymakers, investors, and corporate managers in Algeria and other developing economies can benefit from the findings, which also help to understand corporate financial performance in emerging African capital markets.
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