This paper aims to assess the impact of capital structure on the stock returns of Egyptian firms with the purpose of providing assistance to investors when deciding between alternative investment choices. Data were collected for 75 firms listed on the Egyptian Stock Exchange over the period 2017–2022, excluding financial firms such as banks and insurance companies. Statistical techniques were conducted using the Statistical Package for Social Science (SPSS) version 20. The results revealed a significant positive impact of capital structure measured by the debt-to-equity ratio on stock returns and an insignificant impact on capital structure measured by the financial leverage ratio on stock returns.
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