European Journal of Business and Innovation Research (EJBIR)

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Do Profitability And Size Affect Financial Leverage Of Jordanian Industrial Listed Companies

Abstract

The main purpose of this study is to investigate the effect of Profitability, and firm’s Size as independent variables on leverage as proxy of Debt to Total Assets ratio (leverage) as dependent variable. A sample of 52 Jordanian Industrial listed companies on Amman Stock Exchange (ASE) for the year ended Dec.31, 2013 was selected. The results of the research show that there is a significant effect of profitability in for of ROA , and size on leverage of industrial companies , on the contrary , ROE has not. Therefore, industrial companies may enhance the profitability of their firms by maximizing the profit, and increasing financial assets compared with total assets. So, the study concludes some recommendations that are beneficial to the stakeholders.

Keywords: Debt Ratio, Industrial Companies, Jordan, Leverage

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License

 

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Email ID: editor.ejbir@ea-journals.org
Impact Factor: 7.79
Print ISSN: 2053-4019
Online ISSN: 2053-4027
DOI: https://doi.org/10.37745/ejbir.2013

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