The Impact of Ownership Structure on the Financial Performance of Jordanian: Evidence from Amman Stock Exchange Corporations services Sector

Abstract

This study has investigated the relationship between Ownership Structure and financial performance in Jordan Ownership concentration, family ownership, and Companies ownership are used as corporate governance variables and ROE as measures of financial performance. Data are obtained from the annual reports of 147 listed companies in the Amman Stock Exchange for the 2014-2016 financial years. Regression results indicate that family ownership is negatively associated with firm performance. This suggests that small ownership are associated with higher financial performance, possibly through closely monitored management. Moreover, the results reveal that the Ownership concentration has a significant positive relationship with the financial performance. However, directors on the board are not associated with financial Performance of the listed companies in Jordan.