International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2021 | Volume: 5 | Issue: 8 | Page No.: 56-61 The Impact of Capital Structure on Financial Firm Performance of Palestinian Listed Companies Sedeaq Nassar Abstract: The main purpose of this study is to examine the impact of capital structure on the financial firm performance of companies listed in Palestine Stock Exchange (PEX) during the period over 2015-2019. The annual financial statements of 36 listed companies were used for this study, which covers a period of 5 years. A multivariate regression analysis is applied to test the influence of capital structure on firm performance. To measure firm performance, Return on Asset (ROA), Return on Equity (ROE) and Return on Investment (ROI) were utilized, whereas Short-Term Debt to Total Assets (STDTA), Long-Term Debt to Total Assets (LTDTA), and Total Debt to Total Assets (TDTA) used as capital structure proxies. The results show that there is a negative significant relationship between capital structure and Return on Asset (ROA). In addition, there is a significant positive impact of capital structure on both Return on Equity (ROE) and Return on Investment (ROI).