This study aimed to identify the effect of capital structure on the performance of the industrial Jordanian Companies listed on Amman Stock Exchange during the period between: 2005 to 2013, whereas this study was applied on all Jordanian industrial companies listed at ASE and which amount 72 companies as in December, 2013. In order to achieve the objective of the current study the unbalanced cross sectional pooled Ordinary Least Square (OLS) regression model was used. The results of this study showed that there was statistically significant inverse effect of capital structure, expressed by long-term debt to capital ratio, total debt to capital ratio and total debt to total assets ratio, on the performance of the Jordanian industrial companies listed at ASE expressed by Return on asset ratio (ROA), which means that the most profitable companies rely less on borrowing to finance their cash needs, and this result is supported by Pecking-order theory which states that the relationship between borrowing and profitability of the company is an inverse relationship so that the most profitable companies are less dependent on profits to finance their needs.
This paper aims to assess the effect of working capital management (WCM) on the performance. Utilizing unbalanced data for a sample of 49 Jordanian Industrial corporations listed at Amman Stock Exchange -2005 to 2009. Using two alternative measures of profitability as proxy for the performance and five proxies for the Working Capital Management, estimation of twenty models panel data cross-sectional time series have been tested employing two regression models; the Fixed-Effects Model and the Ordinary Least Squares Model. The findings of our study found to be significantly consistent with the view of the traditional working capital theory. The results suggest that working capital management and performance are positively correlated. The regression results also concluded that the Jordanian industrial firms follow a conservative investing policy and less aggressive financing policy in the working capital, and a well-efficient managing of the working capital can add value to the shareholders wealth.
This study aimed to investigate the assumed impact of the leverage on the firms' value utilizing unbalanced pooled Ordinary Least Square (OLS) cross-sectional time series panel data regression approach to all listed companies in Amman Stock Exchange (ASE) during the period 2000-2013 after excluding the financial sector and services sector, due to their own characteristics. F-test was used to test the hypothesis that the changes in the firms' leverage level significantly explain the changes in the firms' value. The results shows that the firms' leverage level affect the firms' value for the Jordanian listed companies included in the sample test. This result is consistent with the result of Rajan and Zingales (1995) who find inverse association between debt and performance.
The current study aimed to identify the factors that affect the earnings quality of Manufacturing Companies listed at Amman Stock Exchange (ASE). Accordingly, four variables were selected, namely: Financial leverage, Firms performance, investment decisions and accounting conservation, in presence of two control variables, namely: firms size and cash holding. Ordinary least square (OLS) cross sectional regression model was applied on a sample of (58) manufacturing companies listed at Amman Stock Exchange (ASE) during the period 2000-2013 resulting in 812 firm/year observation. The results of the analysis showed the existence of statistically significant direct impact for each of firm performance, financial leverage and accounting conservation on earnings quality. These results are consistent with the view that the greater the company's earnings are, it becomes the less likely to practice creative accounting or earnings management, what led to increased earnings quality. Also, these results are consistent with the point of view that external creditors are considered as external control tool over management's performance, what in turns, reduces the agency cost and reduces the likelihood of practicing creative accounting or earnings management, which will reflect positively on the quality of earnings. Finally, accounting conservation plays a role in the reduction of the practice of creative accounting or earnings management.
This study aimed to test whether the herd behavior appears in the Amman Stock Exchange (ASE). Using data on a daily basis for a sample of companies in the Free Float Share Weighted Index during the study period from the beginning of the, 2000 to the end of August 2014 and using the Cross-Sectional Absolute Deviation (CSAD) Approach. The results found that the non-linear relationship between the cross sectional absolute deviation of the stock returns and the return of the market portfolio is an inverse relationship (γ 3 = -0.179), so that the dispersion decreases with the increase in market rate of return, which means that investors during the study period were emulating the performance of the market without paying attention to the stock's characteristics regarding risk and return, which suggests that investors are taking the herd behavior.
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