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

Abstract

The Impact of Ownership Structure on Firm Performance: Evidence from Jordan

Author(s): Ahmed Maqsad Mohammed

The aim of this study is to investigate the relationship between ownership structure and firm performance for firms listed in the Jordanian stock exchange. The ownership concentration and owner’s identity which includes block holders, family ownership, institutional ownership and managerial ownership are taken as independent variables in our study. Whereas, Tobin’s Q, Return on Asset (ROA) and Return on Equity (ROE) are used as dependent variables. Pooled ordinary least square is used to test the hypothesis. The findings of the study have shown a great deal of agreement with agency theory. Results further revealed that Jordanian firms were following concentrated ownership, mostly family-based. The findings of this study have implications for researchers and policymakers in advancing the existing body of knowledge and formulating corporate policies.