العلاقة بين مقاييس الرفع التشغيلي المختلفة و أثر الرفع التشغيلي على مستويات الرفع المالي

Abstract EN

The purpose of this study is to examine the relationship among four operating leverage measures.

In addition, the study tests for the association between each operating leverage measure with firm beta, financial leverage and the variance of stock returns.

Preliminary results indicate high and statistically significant correlation between Variable Cost Ratio (VCR) and the fourth measure of operating leverage (OPL4), and moderate (r= 30) and statistically significant correlation between VCR and fixed asset to total asset ratio (OPL2).

All operating leverage measures are shown to have weak associations with market beta and the variance of stock returns with exception of one measure (fixed asset to total asset), which explains about 0.17 of the stock returns variances.

The study fails to confirm or support previous studies* findings that showed a negative association between financial leverage and operating leverage.