IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2024-01-3.html

Analyzing the Impact of Quality of Public Governance on the Market Value of Companies Listed on the Amman Stock Exchange

Author

Listed:
  • Amjad S. Qwader

    (Department of Business Economics, Business Faculty, Tafila Technical University, Jordan)

Abstract

This study aimed to examine the impact of public governance quality on the market value of companies listed on the Amman Stock Exchange from 2002 to 2021. The study utilized the Autoregressive Distributed Lag (ARDL) model to analyze slow-moving distributed time series. The findings indicated a significant and positive correlation between various indicators of quality of public governance, such as voting and accountability, political stability and absence of violence, and organizational quality, with the market value of the listed companies. These results align with economic theory assumptions. However, in terms of Monetary freedom, another important indicator of the quality of public governance, the study found no statistically significant relationship with the market value of the listed companies at a significant level. This observation may be attributed to the government's limited capacity to manage the country's public financial resources efficiently and effectively, particularly regarding transparent and responsible administration of taxation, debt, and government expenditure.

Suggested Citation

  • Amjad S. Qwader, 2024. "Analyzing the Impact of Quality of Public Governance on the Market Value of Companies Listed on the Amman Stock Exchange," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 14(1), pages 28-38, January.
    • Handle: RePEc:eco:journ1:2024-01-3
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/15371/7692
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/15371
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mariem Brahim & Houssem Rachdi, 2014. "Foreign Direct Investment, Institutions and Economic Growth: Evidence from the MENA Region," Journal of Reviews on Global Economics, Lifescience Global, vol. 3, pages 328-339.
    2. Zulfiqar Ali Imran & Abdullah Ejaz & Cristi Spulbar & Ramona Birau & Periyapatna Sathyanarayana Rao Nethravathi, 2020. "Measuring the impact of governance quality on stock market performance in developed countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 33(1), pages 3406-3426, January.
    3. Meghana Ayyagari & Thorsten Beck & Asli Demirguc-Kunt, 2007. "Small and Medium Enterprises Across the Globe," Small Business Economics, Springer, vol. 29(4), pages 415-434, December.
    4. Syed Ali Raza & Nida Shah & Imtiaz Arif, 2021. "Relationship Between FDI and Economic Growth in the Presence of Good Governance System: Evidence from OECD Countries," Global Business Review, International Management Institute, vol. 22(6), pages 1471-1489, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Myint Moe Chit, 2018. "Political openness and the growth of small and medium enterprises: empirical evidence from transition economies," Empirical Economics, Springer, vol. 55(2), pages 781-804, September.
    2. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries:Does local Economic Conditions Matter?," Economic Development and Well-being Research Group Working Paper Series edwrg-01-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    3. Akhilesh Prabhakar & Muhammad Azam & B. Bakhtyar & Yusnidah Ibrahim, 2015. "Foreign Direct Investment, Trade and Economic Growth: A New Paradigm of the BRICS," Modern Applied Science, Canadian Center of Science and Education, vol. 9(12), pages 1-32, November.
    4. Maria Luisa Mancusi & Andrea Vezzulli & Serena Frazzoni & Zeno Rotondi & Maurizio Sobrero, 2018. "Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing," Economica, London School of Economics and Political Science, vol. 85(337), pages 177-204, January.
    5. Mehdi Hajilo & Mojtaba Ghadiri Masoom & Seyed Hassan Motiee Langroudi & Hassanali Faraji Sabokbar & Lori Pennington-Gray, 2017. "Spatial Analysis of the Distribution of Small Businesses in the Eastern Villages of Gilan Province with Emphasis on the Tourism Sector in Mountainous Regions," Sustainability, MDPI, vol. 9(12), pages 1-19, December.
    6. Flavia Massuga & Marcos Aurélio Larson & Marcos Roberto Kuhl & Sérgio Luis Dias Doliveira, 2024. "The influence of global governance on the sustainable performance of countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28567-28589, November.
    7. W. Raphael Lam & Yan Liu, 2020. "Tackling Small and Medium-Sized Enterprises (SMEs) Financing in China," Annals of Economics and Finance, Society for AEF, vol. 21(1), pages 209-239, May.
    8. Samuel Lee & Petra Persson, 2016. "Financing from Family and Friends," The Review of Financial Studies, Society for Financial Studies, vol. 29(9), pages 2341-2386.
    9. Julia Eichholz & Nicole Hoffmann & Anja Schwering, 2024. "The role of risk management orientation and the planning function of budgeting in enhancing organizational resilience and its effect on competitive advantages during times of crises," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 35(1), pages 17-58, March.
    10. Régis Blazy & Nirjhar Nigam, 2019. "Corporate insolvency procedures in England: the uneasy case for liquidations," European Journal of Law and Economics, Springer, vol. 47(1), pages 89-123, February.
    11. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    12. Chinmaya Behera & Bikash Ranjan Mishra & Biswashree Tanaya Priyadarsini & Lopamudra D. Satpathy, 2020. "Institutional Quality and Foreign Direct Investment Inflows: Evidence from Cross-country Data with Policy Implication," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 302-316.
    13. Hassan Guenichi & Neji Al-Eid Omri, 2025. "Threshold effects of institutional quality on FDI-economic growth nexus: a panel smooth transition regression (PSTR) model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(8), pages 19097-19119, August.
    14. Roy, Kusumita Bardhan & Tripathi, Sabyasachi, 2025. "Determinants of Female Employment in Agriculture, Industry, and Service Sector: A cross country analysis," MPRA Paper 124674, University Library of Munich, Germany.
    15. Ines TROJETTE, 2016. "The Effect Of Foreign Direct Investment On Economic Growth: The Institutional Threshold," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 111-138.
    16. Huang, Shuo, 2022. "Does FinTech improve the investment efficiency of enterprises? Evidence from China’s small and medium-sized enterprises," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 571-586.
    17. Ji Jiang & Jin Chen, 2021. "Framework of Blockchain-Supported E-Commerce Platform for Small and Medium Enterprises," Sustainability, MDPI, vol. 13(15), pages 1-14, July.
    18. Charles Ackah & Richard Osei Bofah & Derek Asuman, 2017. "Who Are Africa’S Entrepreneurs? Comparative Evidence From Ghana And Uganda," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-23, December.
    19. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and poverty in Sub-Saharan African countries: the role of host absorptive capacity," Economic Development and Well-being Research Group Working Paper Series edwrg-04-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    20. Parmendra Sharma & Neelesh Gounder, 2012. "Obstacles to bank financing of micro and small enterprises: empirical evidence from the Pacific with some policy implications," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 49-75, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2024-01-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijefi .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.