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December 10, 2019International Business Research94 citationsOpen Access

Impact of Financial Leverage, Size and Assets Structure on Firm Value: Evidence from Industrial Sector, Jordan

ZAZaher Abdel Fattah Al-Slehat

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Abstract

The present study aims at revealing the financial leverage, Size, and asset structure and its impact on the values of firms. The researcher used the analytical method approach for a sample of 13 firms from the mining and extraction industry sector listed on the Amman stock exchange of the period 2010-2018.The model of simple line regression was used for testing the hypotheses of the study by using both programs of (E-views, STATA) in addition to both programs of unit root test and variance inflation factor to make sure of the data stability and no relationship between variables. The study concluded the non-existence of the impact of financial leverage on the firm value and the relationship between the financial leverage and Tobins q scale was negative. However, there was an impact of each size and asset structure on firm value and the relationship between the natural logarithm of size and asset structure was positive with Tobins q. The study recommends that Companies must achieve an optimal mixture of debt and equity, for long-term survival and hence the growth of the company.

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Zaher Abdel Fattah Al-Slehat (2019) studied this question.

synapsesocial.com/papers/6a164713512cb4f7828eaf96https://doi.org/10.5539/ibr.v13n1p109
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