The effect of financial leverage on banks' performance: empirical evidence from a frontier market - the Amman Stock Exchange

This study aimed to explore the determinants of the capital structure of the banks listed in the Amman Stock Exchange. A sample of 13 Jordanian commercial banks of 16 banks listed on the Amman Stock Exchange selected for the period 2008-2017. The current study applied a fixed-effects regression model by using e-views to analyze the relationship between financial leverage and firm characteristics such as Risk, Size, profitability, Growth, liquidity, Tax, Age, tangibility, and macroeconomic variables such as Gross Domestic Product, Inflation. The study finds a significant positive relationship between financial leverage, age, growth, risk, size, and tax. Also, the study finds a significant negative relationship between financial leverage with GDP, inflation, liquidity, profitability, and tangibility.

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PENGARUH LINDUNG NILAI, FINANCIAL LEVERAGE, DAN MANAJEMEN LABA TERHADAP AGRESIVITAS PAJAK

Media Riset Akuntansi Auditing & Informasi ◽

10.25105/mraai.v17i1.2039 ◽

2017 ◽

Vol 17 (1) ◽

pp. 31

Author(s):

Furqon Nurhandono ◽

Amrie Firmansyah

Keyword(s):

Panel Data ◽

Earnings Management ◽

Empirical Evidence ◽

Tax Evasion ◽

Significant Relationship ◽

Stock Exchange ◽

Tax Planning ◽

Financial Leverage ◽

Tax Aggressiveness ◽

Taxable Income

<em>This research is aimed to provide empirical evidence about relationship between hedging, financial leverage, and earnings management on tax aggressiveness.</em> <em>Frank and Rego (2009) defines tax aggressiveness as the act of manipulation to reduce the amount of taxable income through tax planning efforts either it can or can not be categorized as an act of tax evasion. Using purposive sampling this research selected 24 firms that are listed in Indonesian Stock Exchange from 2011-2015 as samples. The result of multiple regression of panel data shows that there is positively significant relationship between financial leverage and tax aggressiveness as well as earnings management and tax aggressiveness. While there is no significant relationship between hedging and tax aggresiveness. </em>

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The Role of Financial Analysis in Assessing the Prices of Shares of Jordanian Industrial Joint Stock Companies Listed on the Amman Stock Exchange

International Journal of Economics and Finance ◽

10.5539/ijef.v11n6p120 ◽

2019 ◽

Vol 11 (6) ◽

pp. 120

Author(s):

Bahaa Sobhi AbdeLatif Awwad ◽

Ammar Zakaria Abdallh Salem

Keyword(s):

Market Share ◽

Financial Analysis ◽

Stock Exchange ◽

Investment Decisions ◽

Share Price ◽

Financial Ratios ◽

Working Capital ◽

Financial Leverage ◽

Amman Stock Exchange

This study aimed to highlight the role of financial ratios in evaluating the prices of shares of Jordanian industrial joint stock companies listed on the Amman Stock Exchange; it also aimed to show which of these ratios has a more influential impact on these prices. The researcher conducted a test study survey to analyze the published data of (73) Jordanian industrial joint stock companies. The study sample (n= 18) formed about (25%) of the total population of the companies listed on the Amman Stock Exchange during the period 2010-2017. The researcher used the multiple regression method to identify the correlations between the financial ratios and the market share prices of the Jordanian industrial joint-stock companies. The results of the study showed a statistically significant effect for the Ratio of Circulation (CR), the Quick Ratio (QR), the Profit Per Share (EPS), the Return on Equity (ROE), the Debt Ratio (DR), the Total Assets Turnover (TAT), the Price- to- Earnings Ratio (PER), and the Price- to- Book Value Ratio (PBVR) on the market share price of the Jordanian industrial joint stock companies. However, the study showed no statistically significant effect of the Degree of Financial Leverage (DOL) and the rate of Working Capital Turnover (WCT) on the prices of these companies. In light of the study findings, the researcher recommended that all investors in the Amman Stock Exchange must have the know-how of the financial analysis, and to benefit from the expertise and knowledge of specialists in the financial analysis in order to rationalize their investment decisions and eventually take the best, decisive investment decisions. Companies should also consider the importance of financial leverage ratios and working capital turnover that may be reflected on the value/prices of their shares.

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Effect of financial leverage on firm growth: empirical evidence from listed firms in Amman stock exchange

Investment Management and Financial Innovations ◽

10.21511/imfi.15(2).2018.14 ◽

2018 ◽

Vol 15 (2) ◽

pp. 154-164

Author(s):

Basem Hamouri ◽

Mahmoud Al-Rdaydeh ◽

Anas Ghazalat

Keyword(s):

Firm Growth ◽

Stock Exchange ◽

Developed Countries ◽

Developing Nations ◽

External Financing ◽

Financial Leverage ◽

Listed Firms ◽

Panel Data Regression ◽

Data Regression ◽

Amman Stock Exchange

Past studies have mostly investigated the significance of financial attributes in trade affairs of developed countries, while dismissing such importance among developing nations. As such, this study looked into the influence of financial leverage upon the growth of Jordanian firms. For that purpose, a sample of 91 firms from Jordan had been analyzed via panel data regression method for the period between 2006 and 2015. As a result, the findings portrayed the irrelevance between financial leverage and growth of assets, but a significantly positive correlation with the growth of sales and employment. On top of that, this study revealed that growth of sales and employment had been significantly and positively correlated with firm size. In short, this study dismissed the speculation the constraint Jordanian firms were in, but on the contrary, displayed the ability to gain external financing to ascertain successful progress.

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The Impact of Liquidity and Leverage on Profitability in Industrial Sector in Jordan

Research in World Economy ◽

10.5430/rwe.v12n1p394 ◽

2021 ◽

Vol 12 (1) ◽

pp. 394

Author(s):

Mousa Mohammad Abdullah Saleh ◽

Muneer M. Jaradat ◽

Lu'ay M. Wedyan ◽

Haneen Mahmoud Ibrahim Saleh

Keyword(s):

Stock Exchange ◽

Financial Statements ◽

Industrial Sector ◽

Financial Leverage ◽

Capital Costs ◽

Industrial Companies ◽

Equity Funding ◽

Amman Stock Exchange ◽

Statistical Conclusion ◽

The Impact

Financial leverage is linked to the funding structure in terms of the proportion of debt in the capital structure; the higher the financial leverage is, the more the company depends on debt in its financing structure. On the other hand, the lower the debt is, the more the company relies on equity funding. The company thus decides the optimal funding combination that minimizes the company's capital costs and maximizes shareholder returns.The aim of this analysis was to quantify the effect of the analysis on the profitability of the Jordanian industrial sector listed on the Amman Stock Exchange during the period (2008-2017) and on a sample of (54) industrial companies to assess the impact of leverage and liquidity. In order to evaluate the data obtained from the actual financial statements of the industrial companies listed on the Amman Stock Exchange, a descriptive and systematic methodology was used. As a result, the statistical conclusion showed that the effect of liquidity and leverage on profitability was a significant result.

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