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The influence of government ownership on firms performance: a quantitative study on Jordan listed firms

Sivasubramaniam, Ayavoo (2018) The influence of government ownership on firms performance: a quantitative study on Jordan listed firms. Masters thesis, Universiti Utara Malaysia.

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Abstract

Lately, most Arab region countries have cultivated the new economic reformation which often linked with economic growth and its ability to enhance financial deepening. This study investigates the government ownership and its association with firm performance. The study used 103 public listed samples on Amman Stock Exchange from 2011-2015. The data measures the relationship of three levels of government ownership with a median point of 28% as well as full government ownership and six financial ratios as control variables to firm performance (ROA, ROE and EPS). Based on the multiple linear regression method with the use of SPSS package, four sets of different regression analysis have been conducted and found statistically mixed results when takes into consideration the year effect and level of government ownership. An insignificant relationship was found between government ownership concentration (breaking up the level of government ownership) and firm performance (ROA, ROE and EPS) when year effect was taken into consideration. However, when year effect was ignored, significant results found for EPS only and conclude low government ownership negatively related with firm performance. When full government ownership was used without breaking up the level of government ownership, the statistical result is positively linked with firm performance. The ROE is positively related at 5% significant level when its RSquare is 16.9%. A Similar finding was found when the year effect was ignored. It also found that control variables like long term debt to total assets and age are consistently significant at 1% with all three dependent variables. Meaning, the longer the firm has been established the better the financial performance of the firm. On the other hand, higher level government ownership may help to boost the firm performance through the government interference (Wasta).

Item Type: Thesis (Masters)
Supervisor : Kesayan, Puspakaran
Item ID: 8904
Uncontrolled Keywords: government ownership, firm performance, ‘wasta’.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 12 Dec 2021 01:33
Last Modified: 14 Dec 2021 06:56
Department: Othman Yeop Abdullah Graduate School of Business
Name: Kesayan, Puspakaran
URI: https://etd.uum.edu.my/id/eprint/8904

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