University of Bahrain
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Investigating the Asymmetric Dynamic Financial Behavior in Jordanian Firms of Amman Stock Exchange: An Empirical Study

Show simple item record Zuraiqat, Zeyad Sartawi, Iaad Odat, Mohammad Ismail, Rajab 2019-10-02T07:08:16Z 2019-10-02T07:08:16Z 2017-06-01
dc.description.abstract The study aims at investigating the financial behavior of Jordanian firms by using the asymmetric dynamic model of the Pecking Order Theory between 2000 and 2016. This research is based on a panel data of 952 observations from a sample of 56 industrial firms from Amman Stock Exchange (ASE). Estimating the static symmetric model and using the random effect model, the study ddoes not find any support for the implementation of the pecking order theory by Jordanian firms except for well-established firms, where the financing deficit coefficient is statistically significant and equal to one. Furthermore, the results indicate that the financial decisions of some Jordanian firms are affected by free cash flow agency costs while other decisions are affected by the bankruptcy risk. This confirms the severeobstacles of the capital market in Jordan and their direct impact on the financial decisions of the Jordanian firms. Therefore, the study recommends the effective implementation of the principle of transparency and the development of legislation to ensure effective control of the market and protection of investors. en_US
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International *
dc.rights.uri *
dc.subject Pecking order theory en_US
dc.subject Asymmetric dynamic model en_US
dc.subject Industrial firms en_US
dc.subject ASE en_US
dc.title Investigating the Asymmetric Dynamic Financial Behavior in Jordanian Firms of Amman Stock Exchange: An Empirical Study en_US
dc.volume Volume 2017 en_US
dc.issue Issue 1 en_US
dc.contributor.authorcountry Jordon en_US
dc.contributor.authorcountry Bahrain en_US
dc.contributor.authoraffiliation Yarmouk University en_US
dc.contributor.authoraffiliation Applied Science University en_US
dc.source.title The Arab Journal of Accounting en_US

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