Relationship between ownership structure and financial performance

Author:

Abu Haija Ayman AhmadORCID,Alrabba Hussein MohammedORCID

Abstract

A firm’s ownership structure is important in gauging its market value, These structures have major impacts on the financial performance of firms in either positive or negative way as demonstrated in previous studies. This study aims to identify the relationship between ownership structure (i.e. family, foreign, managerial and institutional ownership) and Jordanian companies’ financial performance. In doing so, we used a sample consisted of 114 companies listed in ASE from 2009 to 2015 (seven years). Using multiple regression using to test whether there are relationships between ownership structure and firms’ financial performance. The results showed a positive relationship among managerial, institutional and family ownership and financial performance, while there is no significant relationship between foreign ownership and firm’s financial performance. Additionally, the result of the current study has documented that the firm size enhances its financial performance, while the leverage has negative relationship to the company’s financial performance. The implication of these findings is important in many ways, i.e. the existence of ownership forms is vital for a company performance, hence, the prospective investors should consider these forms when investing in companies the results show that R2 value is average which opens up possible research areas in the future to explore new explanatory variables to expand the literature on these issues especially in developing countries.

Funder

Yarmouk University

Publisher

Virtus Interpress

Subject

General Business, Management and Accounting

Reference21 articles.

1. Asadi, A., & Pahlevan, M. (2016). The relationship between ownership structure and firms' performance in Tehran Stock Exchange. Journal of Insurance and Financial Management, 1(2), 62-76.

2. ASE. (2016). Listed Companies 2016. Retrieved from: http://www.ase.com.jo/en/equities

3. Aymen, B. M. M. (2014). Impact of ownership structure on financial performance of banks: Case of Tunisia. Journal of Applied Finance & Banking, 4(2), 163-182.

4. Benson, S. (2011). The relationship between ownership structure and financial performance of companies listed in the NSE. Nairobi.

5. Brian, L. C., Robert, E. H., & Laszlo, T. (2010). Ownership as a form of corporate governance. Journal of Management Studies, 47 (8), 1561-1589.

Cited by 4 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3