Measuring and analysing the relationship of financial leverage and working capital to economic value added of a sample Algerian economic enterprises using dynamic analysis for the period 2010-2019

Abstract EN

This study attempts to demonstrate the nature of the relationship of financial leverage and working capital to the economic value added of 11 Algerian economic enterprises for the period between 2010-2019.

this is through using panel data and total debt to private funds as a measure of leverage and total working capital to the volume of assets to measure working capital.

to perform that, we rely on the dynamic model of sectional time series data using generalized method of moments (GMM).

the study found that there was a direct correlation between working capital with statistical significance, as well as a direct correlation between financial leverage and economic value added.

in addition to the abstract slower dependent variable regression coefficient, which reflects the convenience of the dynamic models for the data used ?