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Arab Journal of Administration المجلة العربية للإدارة

Abstract

This study aims to identify the most important determinants of the financial structure of the Egyptian industrial companies, as well as to determine the absorptive capacity of the debt in the facilities in question, and find out their ability to borrow money from funders. In conclusion, the relationship between financial indicators and format of the financial structure of industrial companies of the Egyptian, using the method of multiple regression analysis, which consisted of a model study, four independent variables, the proportion of debt the company's previous, liquidity, profitability, growth rate, while the proportion of Leverage the dependent variable in the structure the company's financial. The study found that the proportion of financial leverage, in the Egyptian industrial companies an average of 36%, which is low compared with those in countries like the United States, Germany, and East Asian countries, where more than 80%, in addition to that there is a statistically significant and positive, between the financial structure, and the proportion of debt the former at a significance level of 1%, and showed, too, a relationship statistically significant and negative, between the financial structure, profitability, liquidity, and the growth rate at a significance level of 1%, the study recommended that moving the facility that is characterized by a high rate of profitability and have the opportunity to hold profits to rely less on borrowed money and a high degree of retained earnings, given the gravity of the high consequences of borrowing, in line with the unstable economic conditions faced by Egypt.

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