أثر مديونية الشركة على مكرر الأرباح للأسهم : دراسة تطبيقية على عينة من الشركات الناشطة في سوق الأسهم السعودية

Abstract EN

This study aimed to test the impact of the indebtedness of Saudi companies on the operating profit multiplier ratio, in order to determine the degree of risk of using this index at investing.

A random sample was taken from the population of the study (companies listed in the main market of Saudi Stock Exchange) after being filtered from companies that had not been listed for at least three years, and which had not achieved a positive operating profit multiplier during the study period.

A regression model has been developed between the natural logarithm of the average Debt/asset ratio of the companies for the years (2016, 2017, 2018) as an independent variable, and the natural logarithm of its operating profit multiplier for 2018 of these companies' shares.

Statistical test revealed a significant negative impact of the indebtedness of Saudi companies on operating profit multiplier of its shares.

This effect increases in companies that have achieved an average positive income growth rate during the three years mentioned, which emphasizes the risk of using this indicator at investing.

The study recommended not to rely entirely on the earnings multiplier when making the investment decision, especially in the event of anticipation of recession .