Author(s): Mohammad Yousef Alghadi, Ayed Ahmad Khalifah Alzyadat
The main purpose of this study is to examine whether board of directors and CEO characteristics affects the leverage. A data set comprising 783 observations of Jordanian firms listed on the Amman Stock Exchange (ASE) was selected, from 2011 to 2019. The empirical analysis was based on random-effect generalized least square (GLS) regression model. The empirical results show that the managerial ownership, CEO education and CEO experience positively influences leverage, while board independent and profitability negative association with leverage. Further, board independent have no a direct effect on leverage in Jordan. This study also paves the way for further investigations on leverage in the context of other nations that are also facing a dearth of research in this study area. Additionally, there is a prevailing need for developing countries to demonstrate improved compliance with international governance standards.