Impact of Debt Structure on Financial Performance of Saudi Arabian Firms
The study uses a sample of 125 firms that are listed on the Saudi-Arabia Stock Exchange. The sample was drawn from 13 different sectors (see Table 1). Firms from the Energy & Utility and the Real Estate sector formed the highest proportion (13.6%) while Agriculture/Food formed the lowest proportion (1.6%).
Descriptive Statistics of Sampled Firms
The highest ratio of short-term debt to total assets was 100 percent. In other words, the firm financed all of its assets with short-term debt. The lowest ratio of short-term debt to total assets was 0 percent. The average ratio of short-term debt to total assets was 21.56 percent with ...