Determinants of corporate financial performance of Palestinian companies listed at Palestine Securities Exchange an empirical : study on the industrial, service, and investment sectors

Other Title(s)

محدداث الأداء المالي للشركاث الفلسطينية المدرجة في سوق فلسطين للأوراق المالية : دراسة تجريبية لقطاع الصناعة، الخدماث و الاستثمار

Dissertant

Ghushah, Lubna Abu Suud

Thesis advisor

al-Mumani, Ghazi Falah

Comitee Members

al-Sarraf, Zaki Jawad
Abd Allah, Khalid Amin
Salamah, Rashid Muhammad

University

Arab Academy for Financial and Banking Sciences

Faculty

The Faculty of Banking and Financial Sciences

Department

Department of Financial Management

University Country

Jordan

Degree

Ph.D.

Degree Date

2011

English Abstract

-This study sets out to identify factors that influence corporate financial performance in a sample of Palestinian companies during the period 2004-2010 on a semiannual basis.

Return on Assets (ROA), Return on Equity (ROE), Working Capital (W.C), and Tobin‟s Q (T.Q) were used as measures of corporate performance.

Eight determinants of corporate performance have been identified.

Those were company‟s size, leverage, liquidity (firm specific factors), unemployment, credit to private sector (CPS), GDP, Inflation, and Interest rate (Macro Economic Factors).

Financial data were taken for 26 companies out of the 45 companies listed at Palestine Securities Exchange.

Those companies are all the listed companies in the industrial sector (10 companies), service sector (8 companies), and investment sector (8 companies).

Ordinary least square method was used to estimate the unknown parameters in the linear multiple regression model.

The results showed that size was the major internal variable which has a positively significant statistical effect on all the performance measures that were used in this study (ROA, ROE, TQ, and W.C).

Leverage and liquidity have a strong positive significant effect on ROE, and on Working capital.

Macro economic factors have no significant statistical effect on corporate performance of Palestinian companies listed in the three sectors included in the study (Industrial, Service, and investment).

The study recommends increasing the size of the Palestinian companies as it will no doubt have a positive effect on their performance. Palestinian companies should concentrate on internal firm factors rather than macro economic factors, as the macro economic factors have no significant statistical effect on firm performance.

Palestinian companies wishing to maximize the wealth of their shareholders need to increase their leverage, taking into consideration the industry average for such a company.

Main Subjects

Financial and Accounting Sciences

Topics

• Financing
• Palestine

No. of Pages

95

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-306812