Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Private Sector Investment and Finance: Firm-Level Analyses

Author(s): Mohammad Khataybeh

Given the economic implications of firm investment, this paper investigates a sample of listed non-financial Jordanian firms in terms of their investments in fixed assets and their capital structure. Based on a total of 76 firms, and the time-period 2007-2017, the results are not that encouraging. During the past few years, Jordanian firms have not been investing. Moreover, while their leverage ratios are low, the results indicate that debt financing positively affect their investment behavior. Based on the empirical results, future research should look into the reasons why Jordanian firms maintain low levels of debt financing. In other words, is the prevailing low levels of debt due to their choice, or is it due to the banks being too conservative in their lending behavior?

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