The Effect of the Financial Leverage Relationship With its Equity Returns (An application of a sample of companies listed on the Amman Stock Exchange)

  • Mansoor Salman Ali Kurkik universitey-College of Administration and Economics

Abstract

        This research deals with the relationship of financial leverage with its Equity returns. The study aimed to identify the concepts of financial leverage and its impact on stock returns, in addition to identifying the optimal structure of capital.


     The study was based on a set of hypotheses to test the relationship between financial leverage on one side and overall risk represented Standard deviation and EPS per share on the other side. A sample of companies listed on the Amman Stock Exchange was selected for the period from 2007 to 2007.


       A simple linear regression analysis method was adopted to arrive at the results of the relationship between the financial leverage (DFL) and stock returns represented by total risk measured by standard deviation, The systemic risk is measured by the (Beta) factor.The study reached a set of conclusions and recommendations.

Published
Mar 12, 2019
How to Cite
ALI, Mansoor Salman. The Effect of the Financial Leverage Relationship With its Equity Returns (An application of a sample of companies listed on the Amman Stock Exchange). Tikrit Journal Of Administrative and Economic Sciences, [S.l.], v. 1, n. 41, p. 167-188, mar. 2019. ISSN 1813-1719. Available at: <http://jaes.tu.edu.iq/index.php/j/article/view/251>. Date accessed: 27 nov. 2019.
Citation Formats
Issue
Vol 1 No 41 (2018): Vol.1,No41 Part2,JAES(2018)
Section
Articles