The Impact of Leverage on Financial Performance of Tunisian Quoted Firms

Abstract

Purpose: This study attempts to understand the relationship between financial leverage and financial perofmrance of Tunsian firms. Design/Methodology/Approach: By appling a panel research method for a sample of 30 firms quoted in Tunsiian stock exchange for the period of 2016-2021. Findings: The study found that leverage has a positive impact on ROA but negative impact on ROE. Practical Implications: Financial leverage is important to meet the requirements of firms and increase the investments. Leverage indicates the possible probalbility of growth and the ambitions of the directors. Originality/Value: Financial performance is necessary to ameliorate the management of the firm by increasing the revenues and decrease the expenses.