The Impact of Capital Structure on Stock Returns of the Egyptian Banks: The Mediating Role of Bank's Financial Performance | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Volume 6, Issue 2 - Serial Number 1, July 2025, Pages 29-54 PDF (1.26 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2025.358062.2168 | ||
| Author | ||
| Ghada Nabile Ahmed Abd-Elmaged* | ||
| Business Administration Department Faculty of Commerce, Tanta University | ||
| Abstract | ||
| The study aims to examine the impact of capital structure on stock returns, with the mediating role of financial performance of the banking sector in Egypt, which is the one of the largest industry in Egypt. The investigation is kept limited to banking industry since different industries have different financing requirements. The study used annual data from a sample of 8 Egyptian banks registered in the EGX100 index between 2010 and 2022. The research methodology was built upon quantitative approach by collecting panel data (secondary data) for the assigned period to test the research hypotheses. Structural Equation Modeling (SEM) was used as a statistical tool to analyze the collected data. Results revealed that capital structure has a positive direct impact on stock returns. Also, capital structure has a negative indirect impact on stock returns through the mediator variable which is referred to as financial performance. Thus, financial performance partially mediates this effect. The study proposes for future studies the impact of capital structure on stock returns through other mediating factors. | ||
| Keywords | ||
| Keywords: capital structure; stock returns; financial performance; Panel data; Structural Equation Modeling (SEM) | ||
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