The Relation between Ownership Structure and Capital Structure: Evidence from Jordanian industrial Firms 2004-2008


AbstractThis study aims to examine the possible relation between ownership structure and capital structure in the industrial firms in Jordan. The publications of the Jordan securities commission for a sample of such firms (ten in number) has been listed in Amman Stock Exchange for the period 2004 to 2008. The multiple regressions at %5 significant level have also been used. Many results have been reached, the most important are: The Jordanian industrial firms tend to use ownership financing to finance their activities, the debt ratio average in such firms is %28.79. The members of the board of directors of such firms own about %46.4 of the firm's stock which is relatively high rate. Big stock holders own about %52.8 of the shares of such firms. Also find that there is no statistically significant evidence that the ownership structure affect the Capital structure in the Jordanian industrial firms.