The impact of ownership structure on the firm’s value

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Ma’in Khaled Almashaqbeh, Nor Raihan Mohamad ORCID logo, Roshaiza Taha ORCID logo

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This study investigates the impact of ownership structure on the firm’s value of Jordanian companies listed in the Amman Stock Exchange (ASE) between 2020 and 2022. The study uses yearly financial reports to collect data on institutional ownership, family ownership, firm value, leverage, company size, liquidity, and profitability. The findings indicate that institutional ownership and family ownership strongly correlate with firm value. The results indicate that good institutional ownership and family ownership are significant determinants in the firm value of Jordanian companies. To make reasonable judgments, it is recommended an attempt to re-study this topic, with the need to expand the scope of the sample to include all sectors operating in Jordan. The study also recommends the necessity of taking disclosure variables (such as voluntary disclosure) together with the ownership structure and knowing their effect on the firm value.

Keywords: Ownership Structure, Family Ownership, Institutional Ownership, Firm Value, Amman Stock Exchange

Authors’ individual contribution: Conceptualization — M.K.A.; Methodology — M.K.A. and N.R.M.; Software — R.T.; Validation — M.K.A.; Formal Analysis — M.K.A. and N.R.M.; Investigation — R.T.; Resources — N.R.M.; Data Curation — M.K.A.; Writing — Original Draft — M.K.A. and R.T.; Writing — Review & Editing — M.K.A.; Visualization — M.K.A. and N.R.M.; Supervision — N.R.M.; Project Administration — M.K.A.; Funding Acquisition — M.K.A. and R.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M40, M41, M48

Received: 27.08.2023
Accepted: 04.12.2023
Published online: 06.12.2023

How to cite this paper: Almashaqbeh, M. K., Mohamad, N. R., & Taha, R. (2023). The impact of ownership structure on the firm’s value [Special issue]. Journal of Governance & Regulation, 12(4), 326–332.