The Moderating Role of Free Cash Flow in the Relationship between Financial Leverage and Financial Performance (An applied study on the traditional private banks listed on the Damascus Stock Exchange)

Authors

  • Ibrahim Salim Damascus University
  • Ghazwan Ali Tishreen University

Abstract

This research aimed to test the effect of financial leverage on the financial performance of private commercial banks in Syria during the period 2010-2020, in addition to testing the modulating role of free cash flows on the relationship between financial leverage and financial performance. Financial performance was measured using (return on total assets), financial leverage was measured using (total debt to total assets), while free cash flows were measured using the equation (net operating profit after taxes - change in fixed assets + change in working capital)/total assets.

 

To achieve the objective of the research, two models were relied on based on quartile data of Panel Data, and the parameters of the models were estimated using the Pooled regression model, after conducting differentiation tests (F test, Hausman test). The results showed that there is no effect of financial leverage on financial performance as measured by (rate of return on assets), and the results also showed the absence of a modulating role for free cash flows in the relationship between financial leverage and financial performance.

Downloads

Published

2024-01-31

How to Cite

1.
سليم ا, غذوان علي. The Moderating Role of Free Cash Flow in the Relationship between Financial Leverage and Financial Performance (An applied study on the traditional private banks listed on the Damascus Stock Exchange). Tuj-econ [Internet]. 2024Jan.31 [cited 2024Nov.25];45(6):225-38. Available from: https://journal.tishreen.edu.sy/index.php/econlaw/article/view/16395

Issue

Vol. 45 No. 6 (2023): Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

  • The authors retain the copyright and grant the right to publish in the magazine for the first time with the transfer of the commercial right to Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences

     Under a CC BY- NC-SA 04 license that allows others to share the work with of the work's authorship and initial publication in this journal. Authors can use a copy of their articles in their scientific activity, and on their scientific websites, provided that the place of publication is indicted in  Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences   .  The Readers have the right to send, print and subscribe to the initial version of the article, and the title of Tishreen University Journal of Research and Scientific Studies - Economic and Legal Sciences Publisher

  • journal uses a CC BY-NC-SA license which mean

    You are free to:

    • Adapt — remix, transform, and build upon the material
    •  
    • The licensor cannot revoke these freedoms as long as you follow the license terms.

  • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.

  • NonCommercial — You may not use the material for commercial purposes.

  • ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.

  • No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.