The Impact of Capital Structure Characteristics on Company Financial Performance: Applied on the Real Estate Sector | ||
| Journal of Advances in Economics and Business Studies | ||
| Volume 2, Issue 2, October 2025, Pages 58-78 PDF (624.58 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/jaebs.2025.462987 | ||
| Authors | ||
| AbdelFatah AbdelRazek1; Karin Mina2; Ahmed Hany Farouk1; Ebram Emad Attala1; Maria Ashraf Zaki1; Mohamed Ashraf Mohamed1; Nada Magdy Mohamed1 | ||
| 1Accounting, Faculty of Economics and International Trade, Egyptian Chinese University | ||
| 2Accounting Department, Faculty of Economics and International Trade, Egyptian Chinese University, Cairo, Egypt | ||
| Abstract | ||
| This study examines how capital structure affects Egyptian commercial enterprises in the building and construction industry's financial performance between 2017 and 2021. In particular, it looks at the relationships between key financial performance indicators including Return on Equity (ROE), Return on Assets (ROA), and Earnings Per Share (EPS) and total debt, long-term debt, and short-term debt ratios. The study, which employs panel data analysis and regression techniques, reveals a range of relationships between capital structure components and performance indicators. It highlights the notable detrimental effects of short-term debt on EPS in certain firms, as well as the inconsistent outcomes for long-term debt and total debt on ROA and ROE, respectively. For investors, financial managers, and legislators, the findings offer insightful information on how to maximize capital structure in order to improve company financial health and shareholder value. | ||
| Keywords | ||
| Capital Structure; Financial Performance; Return on Assets; Return on Equity; Earnings Per Share; Total Debt; Long; Short; Term Debt | ||
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