IDEAS home Printed from https://ideas.repec.org/a/ibn/masjnl/v10y2016i5p163.html
   My bibliography  Save this article

Panel Data Approach of the Firm’s Value Determinants: Evidence from the Jordanian Industrial Firms

Author

Listed:
  • Imad Ramadan

Abstract

This study aimed to investigate the main determinants of the industrial firms' value in developing countries namely Jordan. To achieve this goal all 77 ASE listed industrial firms for the period from 2000 to 2014 were utilized resulting in 974 firm-year observations. Twelve firm specific variables, namely, firm's size; firm's age; firm's risk level; firm's sales revenue; firm's operating cost; firm's tax rate; firm's net margin; firm's capital expenditure; firm's book value; firm's earning per share; firm's dividend per share and firm's pay-out ratio, were tested as a possible determinates of the firm's value. After testing for Multicollinearity and Heteroscedasticity the result of the unbalanced panel data Multi-regression model approach shows that the joint effect of the twelve potential determinants interprets about 37% of the variation in the value of the Jordanian industrial firms listed at ASE (R-squares = 0.3682), therefore, firm's in developing countries like Jordan should concentrate on these specific variables of the firms in order to improve the value and thus the wealth of the shareholders. Another finding of the study is that the firm's risk level and tax rate are not statistically significant drivers of the Jordanian industrial firm's value. The findings of the effect of firm's risk level and tax rate on the firm's value were contrary with Tiwari Ranjit et al (2015) and Rappaport (1998) respectively.

Suggested Citation

  • Imad Ramadan, 2016. "Panel Data Approach of the Firm’s Value Determinants: Evidence from the Jordanian Industrial Firms," Modern Applied Science, Canadian Center of Science and Education, vol. 10(5), pages 163-163, May.
    • Handle: RePEc:ibn:masjnl:v:10:y:2016:i:5:p:163
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/mas/article/download/56595/31442
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/mas/article/view/56595
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luciana Mancinelli & Aydin Ozkan, 2006. "Ownership structure and dividend policy: Evidence from Italian firms," The European Journal of Finance, Taylor & Francis Journals, vol. 12(3), pages 265-282.
    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. Pantelis Longinidis & Panagiotis Symeonidis, 2013. "Corporate Dividend Policy Determinants: Intelligent Versus A Traditional Approach," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 111-139, April.
    2. Marco Allegrini & Giulio Greco, 2013. "Corporate boards, audit committees and voluntary disclosure: evidence from Italian Listed Companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 187-216, February.
    3. Giulio Greco, 2011. "Determinants of board and audit committee meeting frequency: Evidence from Italian companies," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(3), pages 208-229, March.
    4. Aleksandra Pieloch-Babiarz, 2019. "Ownership structure, board characteristics and dividend policy: evidence from the Warsaw Stock Exchange," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 317-330, September.
    5. López-Iturriaga, Félix J. & Santana Martín, Domingo Javier, 2019. "The payout policy of politically connected firms: Tunnelling or reputation?," The North American Journal of Economics and Finance, Elsevier, vol. 50(C).
    6. Hamid Ravanpak Noodezh & Ali Amiri & Salehe Moghimi, 2015. "Investigation of the Relationship between Shareholders Conflict over Dividend Policy and Accounting Conservatism in Tehran Stock Exchange," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(3), pages 108-115, July.
    7. Giuli, Alberta Di & Karmaziene, Egle & Sekerci, Naciye, 2021. "Common ownership and firm dividend policies," Finance Research Letters, Elsevier, vol. 40(C).
    8. Juan Manuel San Martín Reyna, 2017. "Ownership structure and its effect on dividend policy in the Mexican context," Contaduría y Administración, Accounting and Management, vol. 62(4), pages 1199-1213, Octubre-D.
    9. Duqi, Andi & Jaafar, Aziz & Warsame, Mohammed H., 2020. "Payout policy and ownership structure: The case of Islamic and conventional banks," The British Accounting Review, Elsevier, vol. 52(1).
    10. Mehmet Levent Erdaş & Emel Bachá Sımoes, 2020. "The Relationship between Audit Mechanisms and Dividend Payout Policy within the Framework of Corporate Governance: The Case of Turkey," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(62), pages 255-284, December.
    11. Mehmet Levent Erdaş & Emel Bachá Sımoes, 2020. "The Relationship between Audit Mechanisms and Dividend Payout Policy within the Framework of Corporate Governance: The Case of Turkey," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(0), pages 255-284, December.
    12. Aziz Jaafar & Lynn Hodgkinson & Mao-Feng Kao, 2019. "Ownership Structure, Board of Directors and Firm Performance: Evidence from Taiwan," Working Papers 19011, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    13. Bukalska Elżbieta & Zabediuk Myroslava & Mostovenko Nataliia, 2023. "Conflict of interests among shareholders – does it refer to dividend decisions?," Folia Oeconomica Stetinensia, Sciendo, vol. 23(1), pages 16-41, June.
    14. Jorge Andrés Munoz Mendoza & Sandra María Sepúlveda Yelpo & Carmen Lissette Veloso Ramos, 2018. "Effects of Corporate Policies and Governance Practices on Ownership Structure: Evidence from Chilean Firms," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 10(2), pages 269-286, November.
    15. R. Ferretti & P. Pattitoni & R. Patuelli, 2016. "Market Abuse Directive and Insider Trading: Evidence from Italian Tender Offers," Working Papers wp1071, Dipartimento Scienze Economiche, Universita' di Bologna.
    16. Duygun, Meryem & Guney, Yilmaz & Moin, Abdul, 2018. "Dividend policy of Indonesian listed firms: The role of families and the state," Economic Modelling, Elsevier, vol. 75(C), pages 336-354.
    17. Chai, D.H., 2010. "Foreign Corporate Ownership and Dividends," Working Papers wp401, Centre for Business Research, University of Cambridge.
    18. Iman Aghaei & Amin Sokhanvar, 2020. "Factors influencing SME owners’ continuance intention in Bangladesh: a logistic regression model," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 391-415, September.
    19. Cambrea, Domenico Rocco & Ponomareva, Yuliya & Pittino, Daniel & Minichilli, Alessandro, 2022. "Strings attached: Socioemotional wealth mixed gambles in the cash management choices of family firms," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    20. Zorica Kalezić, 2015. "Ownership Concentration and Firm Performance in Transition Economies: Evidence from Montenegro," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 4(3), pages 5-64.

    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:masjnl:v:10:y:2016:i:5:p:163. 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.