Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan

Mohammad Tayseer Alshaboul; Mohammad Ahmad Abu Zraiq

doi:doi:10.11648/j.jfa.20200802.11

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Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan

Mohammad Tayseer Alshaboul, Mohammad Ahmad Abu Zraiq

Published in Journal of Finance and Accounting (Volume 8, Issue 2)

Received: 24 February 2020 Accepted: 9 March 2020 Published: 1 April 2020

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Abstract

This study provides clear evidences indication on the association of the board of directors and the corporate financial performance. This study investigates the relationship between board of directors’ mechanism namely (board size, board independence, board meeting frequency, and CEO duality) and corporate financial performance among industrial Jordanian listed corporations on Amman stock exchange (ASE) for the period 2016-2017. Corporate financial performance is measure by Return on Asset (ROA) and Return on Equity (ROE). This study contributes to the existing literature It adds values to the existing literature by providing extensive insights of the role of the board of director and corporate financial performance. The multiple regression analysis used to test the 4 hypotheses. Corporations listed in ASE are the subjects of this study for the years 2016 and 2017. The result of the independent variable namely board size, board independence, board meeting frequency, and CEO duality affects the Return on Asset (ROA) significantly. However, there is only one independent variable namely CEO duality that is insignificantly related to Return on Asset (ROA). Furthermore, the result of multiple regression analysis indicates that there is a significant relationship between highly linked to board size, board independence, and board meeting frequency and Return on Equity (ROE). On other hand contrary, the regression analysis shows the CEO Duality to be insignificantly related to Return on Equity (ROE).

Published in	Journal of Finance and Accounting (Volume 8, Issue 2)
DOI	10.11648/j.jfa.20200802.11
Page(s)	59-63
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Corporate Financial Performance, Board of Directors, Corporate Governance, Jordan

References

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APA Style

Mohammad Tayseer Alshaboul, Mohammad Ahmad Abu Zraiq. (2020). Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan. Journal of Finance and Accounting, 8(2), 59-63. https://doi.org/10.11648/j.jfa.20200802.11

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ACS Style

Mohammad Tayseer Alshaboul; Mohammad Ahmad Abu Zraiq. Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan. J. Finance Account. 2020, 8(2), 59-63. doi: 10.11648/j.jfa.20200802.11

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AMA Style

Mohammad Tayseer Alshaboul, Mohammad Ahmad Abu Zraiq. Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan. J Finance Account. 2020;8(2):59-63. doi: 10.11648/j.jfa.20200802.11

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@article{10.11648/j.jfa.20200802.11,
  author = {Mohammad Tayseer Alshaboul and Mohammad Ahmad Abu Zraiq},
  title = {Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {2},
  pages = {59-63},
  doi = {10.11648/j.jfa.20200802.11},
  url = {https://doi.org/10.11648/j.jfa.20200802.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200802.11},
  abstract = {This study provides clear evidences indication on the association of the board of directors and the corporate financial performance. This study investigates the relationship between board of directors’ mechanism namely (board size, board independence, board meeting frequency, and CEO duality) and corporate financial performance among industrial Jordanian listed corporations on Amman stock exchange (ASE) for the period 2016-2017. Corporate financial performance is measure by Return on Asset (ROA) and Return on Equity (ROE). This study contributes to the existing literature It adds values to the existing literature by providing extensive insights of the role of the board of director and corporate financial performance. The multiple regression analysis used to test the 4 hypotheses. Corporations listed in ASE are the subjects of this study for the years 2016 and 2017. The result of the independent variable namely board size, board independence, board meeting frequency, and CEO duality affects the Return on Asset (ROA) significantly. However, there is only one independent variable namely CEO duality that is insignificantly related to Return on Asset (ROA). Furthermore, the result of multiple regression analysis indicates that there is a significant relationship between highly linked to board size, board independence, and board meeting frequency and Return on Equity (ROE). On other hand contrary, the regression analysis shows the CEO Duality to be insignificantly related to Return on Equity (ROE).},
 year = {2020}
}

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TY  - JOUR
T1  - Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan
AU  - Mohammad Tayseer Alshaboul
AU  - Mohammad Ahmad Abu Zraiq
Y1  - 2020/04/01
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200802.11
DO  - 10.11648/j.jfa.20200802.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 59
EP  - 63
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200802.11
AB  - This study provides clear evidences indication on the association of the board of directors and the corporate financial performance. This study investigates the relationship between board of directors’ mechanism namely (board size, board independence, board meeting frequency, and CEO duality) and corporate financial performance among industrial Jordanian listed corporations on Amman stock exchange (ASE) for the period 2016-2017. Corporate financial performance is measure by Return on Asset (ROA) and Return on Equity (ROE). This study contributes to the existing literature It adds values to the existing literature by providing extensive insights of the role of the board of director and corporate financial performance. The multiple regression analysis used to test the 4 hypotheses. Corporations listed in ASE are the subjects of this study for the years 2016 and 2017. The result of the independent variable namely board size, board independence, board meeting frequency, and CEO duality affects the Return on Asset (ROA) significantly. However, there is only one independent variable namely CEO duality that is insignificantly related to Return on Asset (ROA). Furthermore, the result of multiple regression analysis indicates that there is a significant relationship between highly linked to board size, board independence, and board meeting frequency and Return on Equity (ROE). On other hand contrary, the regression analysis shows the CEO Duality to be insignificantly related to Return on Equity (ROE).
VL  - 8
IS  - 2
ER  -

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Author Information

Mohammad Tayseer Alshaboul

Faculty of Business & Information Science, UCSI University, Kuala Lumpur, Malaysia
Mohammad Ahmad Abu Zraiq

Faculty of Business & Information Science, UCSI University, Kuala Lumpur, Malaysia

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Plain Text BibTeX RIS

APA Style

Mohammad Tayseer Alshaboul, Mohammad Ahmad Abu Zraiq. (2020). Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan. Journal of Finance and Accounting, 8(2), 59-63. https://doi.org/10.11648/j.jfa.20200802.11

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ACS Style

Mohammad Tayseer Alshaboul; Mohammad Ahmad Abu Zraiq. Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan. J. Finance Account. 2020, 8(2), 59-63. doi: 10.11648/j.jfa.20200802.11

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AMA Style

Mohammad Tayseer Alshaboul, Mohammad Ahmad Abu Zraiq. Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan. J Finance Account. 2020;8(2):59-63. doi: 10.11648/j.jfa.20200802.11

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@article{10.11648/j.jfa.20200802.11,
  author = {Mohammad Tayseer Alshaboul and Mohammad Ahmad Abu Zraiq},
  title = {Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {2},
  pages = {59-63},
  doi = {10.11648/j.jfa.20200802.11},
  url = {https://doi.org/10.11648/j.jfa.20200802.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200802.11},
  abstract = {This study provides clear evidences indication on the association of the board of directors and the corporate financial performance. This study investigates the relationship between board of directors’ mechanism namely (board size, board independence, board meeting frequency, and CEO duality) and corporate financial performance among industrial Jordanian listed corporations on Amman stock exchange (ASE) for the period 2016-2017. Corporate financial performance is measure by Return on Asset (ROA) and Return on Equity (ROE). This study contributes to the existing literature It adds values to the existing literature by providing extensive insights of the role of the board of director and corporate financial performance. The multiple regression analysis used to test the 4 hypotheses. Corporations listed in ASE are the subjects of this study for the years 2016 and 2017. The result of the independent variable namely board size, board independence, board meeting frequency, and CEO duality affects the Return on Asset (ROA) significantly. However, there is only one independent variable namely CEO duality that is insignificantly related to Return on Asset (ROA). Furthermore, the result of multiple regression analysis indicates that there is a significant relationship between highly linked to board size, board independence, and board meeting frequency and Return on Equity (ROE). On other hand contrary, the regression analysis shows the CEO Duality to be insignificantly related to Return on Equity (ROE).},
 year = {2020}
}

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TY  - JOUR
T1  - Investigating the Relationship Between Board of Directors and Corporate Financial in Jordan
AU  - Mohammad Tayseer Alshaboul
AU  - Mohammad Ahmad Abu Zraiq
Y1  - 2020/04/01
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200802.11
DO  - 10.11648/j.jfa.20200802.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 59
EP  - 63
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200802.11
AB  - This study provides clear evidences indication on the association of the board of directors and the corporate financial performance. This study investigates the relationship between board of directors’ mechanism namely (board size, board independence, board meeting frequency, and CEO duality) and corporate financial performance among industrial Jordanian listed corporations on Amman stock exchange (ASE) for the period 2016-2017. Corporate financial performance is measure by Return on Asset (ROA) and Return on Equity (ROE). This study contributes to the existing literature It adds values to the existing literature by providing extensive insights of the role of the board of director and corporate financial performance. The multiple regression analysis used to test the 4 hypotheses. Corporations listed in ASE are the subjects of this study for the years 2016 and 2017. The result of the independent variable namely board size, board independence, board meeting frequency, and CEO duality affects the Return on Asset (ROA) significantly. However, there is only one independent variable namely CEO duality that is insignificantly related to Return on Asset (ROA). Furthermore, the result of multiple regression analysis indicates that there is a significant relationship between highly linked to board size, board independence, and board meeting frequency and Return on Equity (ROE). On other hand contrary, the regression analysis shows the CEO Duality to be insignificantly related to Return on Equity (ROE).
VL  - 8
IS  - 2
ER  -

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