The Impact of Financial Performance on the Growth of Private Industrial Algerian Companies «An Empirical Study During the Period (2009- 2012)»

Abstract

The aim of this study is to demonstrate the impact of financial

performance on the growth of private industrial Algerian companies by

identifying the extent of the impact of the independent variables (financial

performance indicators) which are (profitability, liquidity, debt, activity

ratios) on the dependent variable (growth of companies) which is expressed

by the Return On Equity. In order to achieve these objectives, a sample

of (46) private industrial Algerian companies during the period (2009-

2012) was tested using (Ordinary Least Squares) . After arranging the

data in (Pooled Data Regression) form, the results showed the existence

of a significant statistically effect at (a =0.05) of profitability ratios and

activity ratios on the growth of private industrial Algerian companies.

However, the study didn’t prove the existence of a significant statistically

effect at (a =0.05) of liquidity ratios or debt ratios on the growth of

these companies. The researchers find that private industrial Algerian

companies should be benefited from external sources if possible to cover

their needs to develop and grow.