The Effect of Board Composition and Ownership Structure on Firm Value: Evidence from Jordan

• 영문명: The Effect of Board Composition and Ownership Structure on Firm Value: Evidence from Jordan
• 발행기관: 한국유통과학회
• 저자명: Rafat Salameh SALAMEH Osama J. AL-NSOUR Khalid Munther LUTFI Zaynab Hassan ALNABULSI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 10 No.2, 163~174쪽, 전체 12쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.02.28

영문 초록

This study aims to investigate the effect of the composition of the board and ownership structure on a firm’s value in Jordanian firms. Specifically, it aims to determine the effect of board size, (CEO) duality, and family, foreign, institutional, and government ownership on a firm’s value. An ordinary least square regression (OLS) was employed to examine the study hypotheses in a sample of 35 Jordanian industrial firms (175 firm-year observation) for a period of five years from 2016–2020. As measured by Tobin’s Q (Q ratio) and marketto- book (MB ratio) for Jordanian industrial firms listed on Amman Stock Exchange (ASE). The result found that foreign ownership, institutional ownership, and family ownership have a significant and positive effect on firm value. By contrast, government ownership does not have a significant effect on firm value. With respect to board composition (CEO duality and board size), the study results found no evidence to support the effect of board composition on firm value. The study recommended the concerned authorities with several recommendations, most notably: taking the necessary measures to ensure the continuity and growth of family businesses because of their positive impact on the value of the company and economic growth, spreading awareness about how governance protects the interests of investors.

목차

1. Introduction

2. Literature Review and Hypotheses

3. Methodology

4. Results and Discussion

5. Conclusion

References

키워드

Board Composition Ownership Structure Firm Value Jordan