مجلة إضافات إقتصادية
Volume 10, Numéro 2, Pages 2059-2077
2026-09-30
The Impact Of Financial Risk On Corporate Financial Performance In Algeria: A Case Study Of Saidal Company During The Period 2000-2024
Authors : Abderraouf Bouzidi . Ayachi Lakhdar .
Abstract
This study aimed to examine the impact of financial risk on the financial performance of Saidal Company over the period 2000-2024 using the Vector Autoregression (VAR) model. Return on Equity (ROE) was adopted as the dependent variable, while the independent variables included the debt ratio, financial autonomy ratio, current liquidity ratio, and firm size. The findings revealed several important results. The estimated model demonstrated overall statistical significance and explained 43.26% of the variations in financial performance. The results also indicated a positive but statistically insignificant relationship between both the debt ratio and financial autonomy ratio and Return on Equity, suggesting the limited influence of financing structure on direct profitability performance. In contrast, the study confirmed a statistically significant negative relationship between current liquidity and Return on Equity, reflecting the opportunity cost associated with maintaining liquidity reserves. Furthermore, a statistically significant positive relationship was identified between firm size and Return on Equity, highlighting the effectiveness of expansion strategies and economies of scale in enhancing the company’s financial performance.
Keywords
Financial Risk ; Financial Performance ; VAR Model ; Saidal Company; Algeria
Les articles similaires
بوسالم أحلام
.
عابد يوسف
.
ص 117-132.
Yahia Zeghoudi
.
pages 74-88.
فضيلي سمية
.
دبي علي
.
ص 239-258.
Ayad Saadi
.
pages 413-436.
Said Houari Amel
.
pages 257-268.
