Tag Archives: Industrial Companies

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

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


This study examined the principles of corporate governance, and make them known and its importance, and to achieve the goal of this study was to develop a questionnaire composed of (70) items, was distributed to a sample study, the study population consisted of industrial corporations listed on the Amman Stock Exchange, and number (70) Company, and was the study sample directors general and their deputies, managers, administrators and financial exclusively, working in industrial companies totaling (280) as director, due to the large size of the sample was selected a random sample of each company to be the research sample, and by (50%) of them, totaling (140) director in companies included in the study, and after the completion of the identification of the study sample were distributed to them (140) questionnaires were retrieved (125) to identify them, and the percentage of questionnaires suitable for statistical analysis of (112) to identify, has been used by researchers in the study, a set of statistical methods, available in the program Statistical Package for Social Sciences (SPSS), including style regression, and correlation analysis to test the hypotheses.The most important results of the study, that there is an application of the principles of corporate governance in industrial corporations listed on the Amman Stock Exchange. There is increase understanding and awareness of the departments of industrial companies to contribute to the principles of corporate governance. Therefore, this will contribute significantly to the upgrading and advancement of the price of the stock in the companies mentioned. One of the main recommendations recommended by this study , constantly industrial corporations listed on the Amman Stock Exchange to apply the principles of corporate governance, and the continuation of industrial corporations in adherence to the principles of corporate governance, in particular, the principle of the role of stakeholders in corporate governance, and the principle responsibilities of the Board of Directors, and the principle of disclosure and transparency, as they have a significant impact on the share price of the company

Keywords: Corporate Governance, Industrial Companies, Share Price, Stakeholders