The Impact of Financing Decisions on Profitability "An Applied Study on Textile Industry companies"


Abstract in English

The purpose of this research is to study the impact of the financing decision (FD) on profitability in the textile industry companies in the Syrian coast during the period (2000- 2016), which are three companies not listed on the Damascus Stock Exchange. The financing decision was measured in terms of ratio of total debt to total assets (TD), Profitability was measured by return on assets (ROA), return on equity (ROE) and return on capital (ROC). A series of annual financial statements of the three companies were used during the period reviewed (Panel Data). In order to estimate the models of the study, the unit root test was applied to test the stability of the studied variables. After confirming their stability, the regression models were estimated using the normal lower squares method. The study reached several results, the most important of which is that the debt has a negative impact on profitability in different ratios used to measure both debt and profitability.

References used

Abbas, A.; Bashir, Z.; Manzoor, S.; and Akram, M. N. (2013). Determinants of Firm’s Financial Performance: An Empirical Study on Textile Sector of Pakistan. Business and Economic Research, Vol. 3, No. 2, pp. 76-86
Adhikari, N. (2015). Determinants of Systematic Risk for Companies Listed on Nepal Stock Exchange. Global Journal of Management and Business Research: C Finance, Vol. 15, Issue 5, pp. 74-83
Ahmad, W.; Ahmed, T.; and Shabbir, G. (2015). Determinants of Textile Firms’ Profitability in Pakistan. Forman Journal of Economic Studies, Vol. 11, pp. 87-101

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