The relationship between ownership structure and firm's performance : evidence from Jordan

Abstract EN

The purpose of this study is to empirically examine the effect of ownership structure variables on firm's performance as measured by Tobin's Q and ROA of Jordanian manufacturing companies listed (ASE).

Using a dataset of 55 listed Jordanian manufacturing companies for the fiscal year 2018 is used.

Multiple regression analysis is undertaken to analyse the potential effect of ownership structure on firm's performance.

The study reveals different results by using different firm's performance measures.

When using the first model (ROA) the results found that there is no evidence supporting the notion that ownership structure variables affects firm's performance.

According to firm-specific characteristics, the results found that there is a positive and significant between SIZE and accounting-based performance measure (ROA).

LEV is negatively and significantly related to accounting-based performance measure (ROA).

However, when the second model (Tobin's Q) used the results found that there is no significant effect between all of the independent variables and Tobin's Q.