Abstract

The current study aims at testing the effect of ‘Financial Flexibility’ (FF) on the market value-added by the firm size as a mediator variable. This study’s statistic sample consists of 26 companies listed on the Amman stock exchange from 2010 to 2019. The FF and market value-added are independent and dependent variables, respectively. The data analysis was done by the Baron - Kenny methodology (1986) and Sobel-Test to analyze the hypothesizes based on the corporate size’s mediation effect role. The results concluded from the study of the effect of the company size on the relationship between FF and market value-added stated that the FF has a positive statistically significant impact, and there a partial mediation of the firm size effect upon this relationship due to the mediation effect is statistically significant based on Sobel test.

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