The aim of this study is to investigate the effect of a firm’s size, asset growth, asset tangibility, and financial leverage on profitability for all listed corporate firms in Jordan using unbalanced panel data (time series and cross-sectional) regression analysis for a sample of 1,663 observations over the period from 2011 to 2018. The overall results show a significant positive effect of a firm’s size and asset growth on profitability. However, asset tangibility presents a significant negative effect on profitability, while financial leverage has an insignificant positive effect on profitability. An analysis of each of the main sectors also point to a consistently positive effect of a firm’s size on profitability, while the results for growth in assets and financial leverage are nearly consistent with overall findings, but not those for asset tangibility. Furthermore, the sub-sample industry analysis reveals mixed results due to the different industry shapes and structures. This study is expected to be of value to firm managers, investors, researchers, and regulators.
This paper tested the size effectiveness on company profitability for the Jordanian context through applying two different models for a large sample of (1538) companies listed in Amman Security Exchange covering the period between 2005 and 2011. The results of the analysis indicated a highly significant value for the three main sectors of the sample. The highest significant value result was for the industrial sector companies, followed by the services sector companies, and lastly the financial sector companies. The results of the detailed industry analysis concerning the whole sub-sectors were similar with the highest values for the food and beverages companies, the commercial and educational services companies, and the insurance companies. The results indicated that the bank companies, the diversified financial companies, and the real estate companies have insignificant coefficient values for the total assets with company size. However, the bank companies only were insignificant for the total revenues coefficient of the company size. Finally, the results of the additional analysis of the top and bottom 30% indicated that the financial sub-sample were insignificant, and inconsistent with the results of the main financial sub-sample companies.
This paper tested the abnormal earnings persistence in the Jordanian context through Ohlson's (1995) first Linear Information Dynamics (LID) Model using an unbalanced panel regression analysis for a sample of (840) public firms listed in the Amman Security Exchange during the period 2007 to 2011. The results showed a highly value relevance for the industrial, financial and services sectors indicated by the coefficient of the abnormal earnings persistence. The services sector had the highest value relevance. However, the industrial and the financial sectors were closed. Finally, the results for the detailed industry analysis of the sub-sectors had shown different values for the coefficient of the abnormal earnings persistence, and bank firms, printing & packaging firms, and the utilities & communication firms had the highest values for the coefficient of the abnormal earnings persistence.
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