IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v13y2018i9p139.html

Ownership Concentration and Going Concern: Evidence from Jordanian Listed Firms

Author

Listed:
  • Mohammed Hassan Makhlouf
  • Fares Jamiel Al-Sufy

Abstract

This study aims to investigate whether ownership concentration affects the going concern. The study depends on a panel data set drawn from 100 non-financial firms listed on the Amman Stock Exchange (ASE) for the period from 2013 to 2016. Ownership concentration was characterized by family ownership and board of directors' ownership. Going concern was measured using Altman’s Z-Scores Model (1968). The outcomes report that the family ownership and directors' ownership are positively associated with going concern. This study presents worthy insights to the understanding of ownership types that may influence going concern evaluation among Jordanian companies. Thus, the results of this article introduce substantial conclusions for investors, policymakers and academics to shed the light on the ownership types that enhance the continuity of firms.

Suggested Citation

  • Mohammed Hassan Makhlouf & Fares Jamiel Al-Sufy, 2018. "Ownership Concentration and Going Concern: Evidence from Jordanian Listed Firms," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(9), pages 139-139, August.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2018:i:9:p:139
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/76026/42587
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/76026
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Villalonga, Belen & Amit, Raphael, 2006. "How do family ownership, control and management affect firm value?," Journal of Financial Economics, Elsevier, vol. 80(2), pages 385-417, May.
    2. Takiah Mohd Iskandar & Mohd Mohid Rahmat & Norazura Mohd Noor & Norman Mohd Saleh & Muhammad Jahangir Ali, 2011. "Corporate governance and going concern problems: evidence from Malaysia," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 2(2), pages 119-139.
    3. Jensen, Michael C. & Meckling, William H., 2008. "Theory of the firm: managerial behavior, agency costs and ownership structure," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    4. Becht, Marco & Bolton, Patrick & Roell, Ailsa, 2003. "Corporate governance and control," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, edition 1, volume 1, chapter 1, pages 1-109, Elsevier.
    5. Mohammed Hassan Makhlouf & Fares Jamiel Al-Sufy & Haitham Almubaideen, 2018. "Board Diversity and Accounting Conservatism: Evidence from Jordan," International Business Research, Canadian Center of Science and Education, vol. 11(7), pages 130-141, July.
    6. Khaled Elsayed, 2007. "Does CEO Duality Really Affect Corporate Performance?," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1203-1214, November.
    7. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    8. Stigler, George J & Friedland, Claire, 1983. "The Literature of Economics: The Case of Berle and Means," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 237-268, June.
    9. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    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. Lin, Chen & Ma, Yue & Malatesta, Paul & Xuan, Yuhai, 2013. "Corporate ownership structure and the choice between bank debt and public debt," Journal of Financial Economics, Elsevier, vol. 109(2), pages 517-534.
    2. Kwon, Yonghyun & Han, Seung Hun & Lee, Bong-Soo, 2016. "Financial constraints and negative spillovers in business groups: Evidence from Korea," Pacific-Basin Finance Journal, Elsevier, vol. 39(C), pages 84-100.
    3. Edward Lawrence & Yuka Nishikawa & Arun Upadhyay, 2024. "Do firms led by founders take higher risk?," The Financial Review, Eastern Finance Association, vol. 59(3), pages 687-717, August.
    4. Isabel Abinzano & Pilar Corredor & Beatriz Martinez, 2021. "Does family ownership always reduce default risk?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 4025-4060, September.
    5. Nan Sun & Yunqing Tao & Xuan Leng & Jiaxuan Li, 2023. "Social credit and corporate leverage: Evidence from a natural experiment in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(7), pages 3962-3978, October.
    6. Barbara Su, 2023. "Banking practices and borrowing firms’ financial reporting quality: evidence from bank cross-selling," Review of Accounting Studies, Springer, vol. 28(1), pages 201-236, March.
    7. Shaikh, Ibrahim A. & O'Brien, Jonathan Paul & Peters, Lois, 2018. "Inside directors and the underinvestment of financial slack towards R&D-intensity in high-technology firms," Journal of Business Research, Elsevier, vol. 82(C), pages 192-201.
    8. Gao, Xin & Xu, Weidong & Li, Donghui, 2025. "Media coverage and managerial investment learning from stock markets: International evidence," Research in International Business and Finance, Elsevier, vol. 76(C).
    9. Andres, Christian & Cumming, Douglas & Karabiber, Timur & Schweizer, Denis, 2014. "Do markets anticipate capital structure decisions? — Feedback effects in equity liquidity," Journal of Corporate Finance, Elsevier, vol. 27(C), pages 133-156.
    10. Nadiah Amirah Nor Azhari & Suhaily Hasnan & Zuraidah Mohd Sanusi, 2020. "The Relationships Between Managerial Overconfidence, Audit Committee, CEO Duality and Audit Quality and Accounting Misstatements," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(3), pages 18-30, June.
    11. Meles, Antonio & Salerno, Dario & Sampagnaro, Gabriele & Verdoliva, Vincenzo & Zhang, Jianing, 2023. "The influence of green innovation on default risk: Evidence from Europe," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 692-710.
    12. Zvi Singer & Jing Zhang, 2022. "Do companies try to conceal financial misstatements through auditor shopping?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(1-2), pages 140-180, January.
    13. Marc Berninger & Markus Klug & Dirk Schiereck, 2018. "Börsenrückzüge infolge steigender Corporate-Governance-Anforderungen – Empirische Evidenz von 13 europäischen Kapitalmärkten [Delistings due to Increased Corporate Governance Requirements – Empirical Evidence from 13 European Capital Markets]," Schmalenbach Journal of Business Research, Springer, vol. 70(4), pages 351-391, December.
    14. Koke, Jens, 2002. "Determinants of acquisition and failure: evidence from corporate Germany," Structural Change and Economic Dynamics, Elsevier, vol. 13(4), pages 457-484, December.
    15. Elizabeth Demers & Philip Joos, 2007. "IPO Failure Risk," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 45(2), pages 333-371, May.
    16. Buchetti, Bruno & Miquel-Flores, Ixart & Perdichizzi, Salvatore & Reghezza, Alessio & Lin, Luca X., 2024. "Loan guarantee and portfolio greening: evidence from European credit registers," Working Paper Series 2916, European Central Bank.
    17. Shoukat Ali & Ramiz ur Rehman & Wang Yuan & Muhammad Ishfaq Ahmad & Rizwan Ali, 2022. "Does foreign institutional ownership mediate the nexus between board diversity and the risk of financial distress? A case of an emerging economy of China," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 553-581, September.
    18. Duong, Huu Nhan & Khalifa, Mariem & Sheikhbahaei, Ali & Sualihu, Mohammed Aminu, 2024. "Corporate noncompliance: Do corporate violations affect bank loan contracting?," Journal of Banking & Finance, Elsevier, vol. 166(C).
    19. Béchir Ben Lahouel & Lotfi Taleb & Younes Ben Zaied & Shunsuke Managi, 2024. "Financial stability, liquidity risk and income diversification: evidence from European banks using the CAMELS–DEA approach," Annals of Operations Research, Springer, vol. 334(1), pages 391-422, March.
    20. Jane Haider & Zhirong Ou & Stephen Pettit, 2019. "Predicting corporate failure for listed shipping companies," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(3), pages 415-438, September.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:ibn:ijbmjn:v:13:y:2018:i:9:p:139. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.