The Relationship between Financial Structure and Accounting Performance: A Benchmark Study of a Sample of Companies Listed on the Algiers Stock Exchange during the Period 2017–2024

Belkacem Mimouni; Zine Elabidine Othmani; Aboubaker Khoualed; Hassiba Almi

doi:10.18096/TMP.2026.01.05

Authors

Belkacem Mimouni Ahmed Draya University https://orcid.org/0009-0006-5122-2748
Zine Elabidine Othmani Ahmed Draya University https://orcid.org/0000-0003-0852-5867
Aboubaker Khoualed Badji Mokhtar - Annaba University https://orcid.org/0009-0004-0042-0184
Hassiba Almi Badji Mokhtar-Annaba University https://orcid.org/0009-0001-7560-754X

DOI:

https://doi.org/10.18096/TMP.2026.01.05

Keywords:

Financial structure, financial performance, Algiers Stock Exchange, Panel models

Abstract

This study aimed to examine the impact of financial structure—measured by the equity ratio, the debt-to-equity ratio, and the long-term assets ratio—on accounting performance measured by the return on assets. The study relied on (panel data) comprising 40 observations obtained from the financial statements of a sample of five (05) companies listed on the Algerian stock market over an eight (08)-year period from 2017 to 2024. To analyze the data and test the study’s hypotheses, the study relied on descriptive and inferential statistical analysis methods using Eviews 14.SV software. The results showed that the equity ratio, the debt-to-equity ratio, and the long-term assets ratio have a statistically significant inverse relationship with accounting performance, as measured by the return on assets. In light of these results, the study recommends that the companies under study adopt a specific policy to maintain a balanced financial structure.

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