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RESULT DISCUSSIONThe purpose of this paper was to examine the relationship between the financialperformance of 10 publicly traded firms that operate in the Saudi Arabian stock market andtheir financial structure between 2016 and 2020. The study also added to the literaryknowledge of how fiscal performance is influenced by financial structure, years in operation,tax regulations (zakat), and Saudi Arabian firms' sizes in a no-interest financial system. Thestudy examines how the Saudi Arabian stock market collapse and the Global Financial Crisisaffected financial performance against a firm’s financial structures.The findings of this study are discussed in this section and focus on answering theresearch questions:How do the country’s economic state and the guiding principles under financial crisesaffect firms’ economic organization and fiscal performance?How does zakat advance companies’ performance in Saudi Arabia?The following themes are also empirically analyzed:1. Whether higher fiscal performance levels are related to low leverage levels andlower leverage levels result in higher profit margins.2. To find the extent to which capital structure and zakat are related and how zakatinfluences financial performance3. How the tax regulations in Saudi Arabia, the size, and the number of years firmshave been in operation affect their financial performance.Limitations of the study are discussed in this section.Relationship between Financial Structure and FinancialPerformanceAn empirical analysis of the data in this study confers with the hypothesis that higherprofit margins are indeed related to low leverage levels and high returns in equity and assets.Moreover, higher leverage levels are associated with decreasing returns and profit margins.Using GPM, NPM, ROA, and ROE as the dependent variables (MANOVA) was used in this
study. It gave evidence to reject the hypothesis that there is no relation between viability andleveraging financial performance. Leverage levels below 0.4000 are likely to give higherprofit margins in equity and asset when viewed as an extraneous variable.When using the time to stratify data through a multi regression analysis whilecontrolling variables such as size and years in operation, there is a significant negative effectof Leverage on capital performance between 2016 and 2020The conclusion given the analyzed data is that low leverage levels are directly related

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Term
Spring
Professor
Professor Grace
Tags
Finance, Corporate Finance, Leverage, Saudi Arabia, Statistical hypothesis testing

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