Leverage and the Jordanian Firms’ Value: Empirical Evidence

  •  Imad Ramadan    


This study aimed to investigate the assumed impact of the leverage on the firms’ value utilizing unbalanced pooled Ordinary Least Square (OLS) cross-sectional time series panel data regression approach to all listed companies in Amman Stock Exchange (ASE) during the period 2000-2013 after excluding the financial sector and services sector, due to their own characteristics. F-test was used to test the hypothesis that the changes in the firms’ leverage level significantly explain the changes in the firms’ value. The results shows that the firms’ leverage level affect the firms’ value for the Jordanian listed companies included in the sample test. This result is consistent with the result of Rajan and Zingales (1995) who find inverse association between debt and performance.

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