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The relationship between financial leverage and equity returns in Arab stock markets
The effect of financial leverage on firm’s performance is one of the most examined and debated issues in finance with an extensive empirical literature that directly or indirectly suggests a role for financial leverage in explaining the cross-sectional dispersion in expected stock returns. This thes...
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| Format: | Thesis |
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AUC Knowledge Fountain
2020
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| _version_ | 1867613419003183104 |
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| access_status_str | Open Access |
| author | Shalaby, Sahar |
| author_browse | Shalaby, Sahar |
| author_facet | Shalaby, Sahar |
| author_sort | Shalaby, Sahar |
| collection | Thesis |
| dc_rights_str_mv | The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy. The author has granted the American University in Cairo or its agents a non-exclusive license to archive this thesis, dissertation, paper, or record of study, and to make it accessible, in whole or in part, in all forms of media, now or hereafter known. |
| description | The effect of financial leverage on firm’s performance is one of the most examined and debated issues in finance with an extensive empirical literature that directly or indirectly suggests a role for financial leverage in explaining the cross-sectional dispersion in expected stock returns. This thesis examines the effect of financial leverage on the cross section of equity returns of publicly listed non-financial firms in the Arab Markets. The thesis focused on four main stock exchanges: Amman Stock Exchange, Egyptian Stock Exchange, Kuwait Stock Exchange and Saudi Stock Exchange (Tadawul). The sampling period extended from the first quarter of 2006 to the last quarter of 2019. The total number of eligible firms was 536, 162 firms from Egypt, 123 firms from Jordan, 116 firms from Kuwait, and 135 firms from Saudi Arabia. The Capital Asset Pricing Model, the Fama French 3-factor model and the Fama-French 5-factor model were used to test the relationship between leverage -measured as the book value of total liabilities divided by book the value of assets - and equity returns. The results showed that leverage change and leverage level have no significant relations with stock returns for all countries included in this study. |
| format | Thesis |
| id | oai:fount.aucegypt.edu:etds-2489 |
| institution | American University in Cairo (Egypt) |
| last_indexed | 2026-06-10T12:35:50.652Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from AUC Knowledge Fountain — bepress |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | AUC Knowledge Fountain |
| publisherStr | AUC Knowledge Fountain |
| record_format | dspace |
| source_str | AUC Knowledge Fountain — bepress |
| spelling | oai:fount.aucegypt.edu:etds-2489 The relationship between financial leverage and equity returns in Arab stock markets Shalaby, Sahar The effect of financial leverage on firm’s performance is one of the most examined and debated issues in finance with an extensive empirical literature that directly or indirectly suggests a role for financial leverage in explaining the cross-sectional dispersion in expected stock returns. This thesis examines the effect of financial leverage on the cross section of equity returns of publicly listed non-financial firms in the Arab Markets. The thesis focused on four main stock exchanges: Amman Stock Exchange, Egyptian Stock Exchange, Kuwait Stock Exchange and Saudi Stock Exchange (Tadawul). The sampling period extended from the first quarter of 2006 to the last quarter of 2019. The total number of eligible firms was 536, 162 firms from Egypt, 123 firms from Jordan, 116 firms from Kuwait, and 135 firms from Saudi Arabia. The Capital Asset Pricing Model, the Fama French 3-factor model and the Fama-French 5-factor model were used to test the relationship between leverage -measured as the book value of total liabilities divided by book the value of assets - and equity returns. The results showed that leverage change and leverage level have no significant relations with stock returns for all countries included in this study. 2020-09-13T07:00:00Z thesis application/pdf https://fount.aucegypt.edu/etds/1481 https://fount.aucegypt.edu/context/etds/article/2489/viewcontent/Thesis_20__20Corrected.pdf The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy. The author has granted the American University in Cairo or its agents a non-exclusive license to archive this thesis, dissertation, paper, or record of study, and to make it accessible, in whole or in part, in all forms of media, now or hereafter known. Theses and Dissertations AUC Knowledge Fountain Financial Leverage||Equity Returns |
| spellingShingle | Financial Leverage||Equity Returns Shalaby, Sahar The relationship between financial leverage and equity returns in Arab stock markets |
| title | The relationship between financial leverage and equity returns in Arab stock markets |
| title_full | The relationship between financial leverage and equity returns in Arab stock markets |
| title_fullStr | The relationship between financial leverage and equity returns in Arab stock markets |
| title_full_unstemmed | The relationship between financial leverage and equity returns in Arab stock markets |
| title_short | The relationship between financial leverage and equity returns in Arab stock markets |
| title_sort | relationship between financial leverage and equity returns in arab stock markets |
| topic | Financial Leverage||Equity Returns |
| url | https://fount.aucegypt.edu/etds/1481 https://fount.aucegypt.edu/context/etds/article/2489/viewcontent/Thesis_20__20Corrected.pdf |
| work_keys_str_mv | AT shalabysahar therelationshipbetweenfinancialleverageandequityreturnsinarabstockmarkets AT shalabysahar relationshipbetweenfinancialleverageandequityreturnsinarabstockmarkets |