The Role of Leverage to Profitability at a Time of Economic Crisis

  •  Panagiotis Papadeas    
  •  Kossieri Evangelia    
  •  Katsouleas George    


This article examines the assets, liabilities, equity, expenses, sales and profits of the Greek technology sector throughout the period 2008-2015. The author is attempting to interpret the effectiveness and profitability of corporations listed in the Athens Stock Exchange in the context of the recent economic crisis through the concepts of operating leverage and Altman z-score. Our results indicate that the above-mentioned theories can be insufficient, when additional factors, such as the degree of expenses-to-sales adjustment, or a more qualitative approach in financial statements analysis is not taken into account as well.

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