The Relationship between Ownership Structures and Financial Performance Evidence from Jordan

Abstract

The aim of this study to investigate the relationship between the ownership structure such as Proportional Share of Owner equity, Proportional Share of Shareholder, Company's Growth, Company's size, and Company's Leverage from one side and financial performance represented by Return on Assets (ROA) on the other side. The population in the study Jordanian industrial companies listed at Amman Financial Market (AFM) during the period 2016–2018; The sample of the study consisted (62) company and data analysis was done using multiple linear regression analysis, (SPSS) Program. The result shows that there is significant impact of Proportional Share of Owner equity, Proportional Share of Shareholder, Company's Growth, Company's size, and Company's Leverage on financial performance. Also financial performance negatively affected by Company's Risk.

Keywords: Ownership Structure, Return on Assets, Capital Structure, Financial Performance.

DOI: 10.7176/RJFA/10-24-15

Publication date: December 31^st 2019