les cahiers du mecas
Volume 20, Numéro 2, Pages 43-55
2024-12-14

Analyzing The Risk-return Relationship Of The Algerian Smes

Authors : Benzeguir Abdelatif . Haoulia Yehya .

Abstract

This research attempts to investigate, via the behavior of return and risk of the studied institutions, the relationship between the activities of small and medium-sized businesses and their financial performance. To accomplish this, we created a database obtained from the National Center for Commercial Registration (CRNC) for a sample of 30 small and medium enterprises, based on the panel data multiple linear regression model. The study's findings demonstrated a connection between the institution's activity and financial performance, since the outcomes show that the activity ratio and the liquidity ratio have an impact on the return on equity and the return on assets that is both positive and statistically significant. Regarding the debt ratio, the study's findings showed that it and the study's dependent variables had an inverse connection.

Keywords

Financial Ratios ; Company Performance ; Panel Data Analysis