Empirical Evidence on Capital Structure Determinants in Jordan

  •  Aziz Yusuf    
  •  Ali Al-Attar    
  •  Husni Al-Shattarat    


This study investigates the relationship between firm characteristics and corporate governance, and capital structure in Jordanian companies listed on the Amman Stock Exchange (ASE). The data consisted of 344 observations spanning over a period of six years. Following previous studies, the observations were analyzed using STATA to run pooled, random and fixed effect regressions on decomposed debt models. This study finds that given their internal nature, Jordanian firms are influenced by both firm specific factors and corporate governance which provides them with better access to short-term debt consequently reducing agency problems and the risk of refinancing.

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