Are Board Size And Ownership  Structure Beneficial In Emerging  Markets’ Firms? Evidence From Jordan

Alabdullah, Tariq Tawfeeq Yousif

doi:10.19030/ijmis.v20i3.9752

Cited by 30 publications

(24 citation statements)

References 16 publications

(18 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…At both the local and international level, there is an increasing interest for countries to adopt and adhere to the best practices of internal control mechanisms in order for companies to best position themselves to be competitive and to meet the challenges brought about by the global economy. To meet the challenge of economic growth, Jordan is one such country that has placed a focus on best practice [1][2][3][4].…”

Section: Introductionmentioning

confidence: 99%

Board Features and Capital Structure in Emerging Markets

Alabdullah¹,

Laadjal²,

Ahmed³

et al. 2018

JOAMS

Self Cite

View full text Add to dashboard Cite

The objective of this research is to investigate, in emerging markets Jordanian non-financial firms, the effect of two main measurements/indicators of board feature on a firm's growth/capital structure. The two main measurements are: the non-executive directors; and the board of directors' size. In addition, for this research the analysis was by using a cross-sectional study. The hypotheses were made by statistical analysis from collection data sample of 100 firms that was made available by nonfinancial sector in Jordan. Statistical Software programs were used by the current research; SPSS and EViews to analyze the data. Multiple regressions were utilized to test the hypotheses of the effect of the number non-executive directors appointed to a board of directors and the board size on the growth/ capital structure of firms taking in the consideration industry type as a control variable. The data of the present research used the annual reports to obtain th 1 e data that issued by ASE for the year 2014. To measure the dependent variable of the current research; growth/capital structure, the present research chose financial leverage. The results showed that increasing the number of non-executive directors in the board, in another meaning increasing size of the board, has a negative and significant effect on financial leverage. Therefore, greater financial leverage is a result of the existence of small board. Yet, a testing of independent boards (non-executive directors) showed that non-executive directors have insignificant effect on capital structure. Moreover, the type of industry, as a control variable, has no impact on capital structure of the non financial firms. The present research practically presents evidence to different interested parties in emerging markets, such as scholars, policy makers and academics especially in Jordan context. The current study contributes to the literature in the middle East because it is the first study in Jordan to investigate board composition in non-financial sector (industrial and service firms) particularly from the perspective of capital structure and Manuscript independent boards (non-executive directors). In that, using data from undeveloped country that has an inefficient financial market, this study provides an important view insight on the international debate on the effects of board composition on corporate decisions.

show abstract

Section: Introductionmentioning

confidence: 99%

Board Features and Capital Structure in Emerging Markets

Alabdullah¹,

Laadjal²,

Ahmed³

et al. 2018

JOAMS

Self Cite

View full text Add to dashboard Cite

show abstract

“…The size of the board contributes to its effectiveness in its functions to maximize the value of the company and would influence the performance of the company (Siahaan, 2013). In an emerging Jordanian study, there was a positive and significant relationship between a large board and performance measured by asset returns and return on equity (Alabdullah, 2016). In the Indian context, Bhatt and Bhattacharya (2015) suggest that a large board improves the financial performance of the company because it contributes favorably through its expertise and also makes it difficult for a CEO of a family business with power control, to influence this type of advice.…”

Section: Board Of Directors Sizementioning

confidence: 99%

Corporate Governance: An Overview. From Creation of Value for Shareholders by the Board to the Duality Role of Its Chairperson

Sayumwe¹

2019

JBAR

View full text Add to dashboard Cite

show abstract

“…This may be achieved through chairmanship or being a member of the board, and also by means of the control of senior management positions [13]. It may result in conflicts of interest between the controlling family and minority stakeholders [14].…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…However, to the knowledge of the researcher, similar studies in the context of Jordan's economy are very rare and it need to do it in this country [10]. The data used in the current study is based on the recent two years, 2015 and 2016 for the firms belonging to industrial and service sectors and belonging to non-financial sector listed in Amman Stock Exchange (ASE) [11] in Jordan.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Ownership Structure on Firm Performance: Evidence from Jordan

Zraiq¹

2018

IJAFRM

View full text Add to dashboard Cite

This study is an attempt to achieve the main objective by examining the association between ownership structure and firm performance of the Jordanian firms. This study used OLS regression to test the relationship between independent. variable and dependent variable as discussed in the section explaining the study method. The data comprised of 228 firms industrial and services. As this study Jordan attempts to bridge the gap. in the existing literature by investigating the association between ownership structure and firm performance in the emerging market of Jordan. The findings indicated a significantly positive relationship between ownership structure (family and foreign) and firm performance. Finally, this study provides recommendations for future research.

show abstract

Are Board Size And Ownership Structure Beneficial In Emerging Markets’ Firms? Evidence From Jordan

Abstract: ABSTRACT

Cited by 30 publications

References 16 publications

Board Features and Capital Structure in Emerging Markets

Board Features and Capital Structure in Emerging Markets

Corporate Governance: An Overview. From Creation of Value for Shareholders by the Board to the Duality Role of Its Chairperson

The Impact of Ownership Structure on Firm Performance: Evidence from Jordan

Contact Info

Product

Resources

About