Family-Concentrated Ownership and Its Influence on the Economic Added Value (EAV): A Practical Study on a Sample of Shareholding Industrial Companies listed in Amman Stock Exchange

Abstract

This study aimed at analyzing the role of the Family- Concentrated Ownership in joint stock companies and its influence on the Economic Added Value EVA. By analyzing Pearson's correlations, it is found that there is a positive correlation between family-centered ownership in the joint stock companies on EAV. Such correlation emphasizes the strong role of family-centered ownership in enhancing EAV, being a very significant indicator to performance. Results of the multiple regressions have revealed that the family-centered ownership provides a good explanation for the difference that resulted from the Market Added Value where the coefficient determination reached 46%. Consequently, these results have revealed the theoretical relationship between the family-centered ownership and the company's' value.The study has recommended that researchers need to pay much more attention to this issue. It has also recommended that the Jordanian industrial joint stock companies should switch into employing EAV as one of the main criteria in evaluating the comprehensive performance of the company. It also recommended that new research should be conducted on the other patterns of ownerships such as: governmental ownership, foreign ownership, the managerial ownership. Also, these studies should explore the impact of these ownerships on EAV.

Key words: Family-Concentrated Ownership, Economic Added Value, Joint Stock Companies.