The Impact of Equity Financing on Financial Performance: Evidence from Jordan
The main objective of this study is to examine the impact of equity financing on the financial performance of Jordanian industrial companies. The study population comprised 393 board directors from 55 Jordanian industrial companies. Purposive sampling was employed to select 346 board directors for t...
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| Format: | Article |
| Language: | English |
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Sciendo
2024-09-01
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| Series: | Foundations of Management |
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| Online Access: | https://doi.org/10.2478/fman-2024-0010 |
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| author | Almanaseer Sufian |
| author_facet | Almanaseer Sufian |
| author_sort | Almanaseer Sufian |
| collection | DOAJ |
| description | The main objective of this study is to examine the impact of equity financing on the financial performance of Jordanian industrial companies. The study population comprised 393 board directors from 55 Jordanian industrial companies. Purposive sampling was employed to select 346 board directors for the study sample. Data were collected via an online questionnaire, and the study used a descriptive-analytical approach to examine the study hypotheses. The study concludes that equity financing posi-tively impacts financial performance. Also, each of the angel investors, retained earnings, crowdfunding, and ploughed-back profit positively impact financial performance. The study recommends that Jordanian industrial companies focus on retained earnings as a funding source; what helps is the lower costs of obtaining financing from retained earnings compared with other funding sources. This study is unique because, as far as the researcher knows, it is the first to look at how angel investors, retained earnings, crowdfunding, and ploughed-back profit affect the financial performance of Jordanian industrial compa-nies all at the same time or separately. |
| format | Article |
| id | doaj-art-0eeb282bf79e41548e7d426538469e17 |
| institution | Kabale University |
| issn | 2300-5661 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Foundations of Management |
| spelling | doaj-art-0eeb282bf79e41548e7d426538469e172025-02-02T15:48:06ZengSciendoFoundations of Management2300-56612024-09-0116115717610.2478/fman-2024-0010The Impact of Equity Financing on Financial Performance: Evidence from JordanAlmanaseer Sufian0Tafila Technical University, College of Business, Tafila, JORDANThe main objective of this study is to examine the impact of equity financing on the financial performance of Jordanian industrial companies. The study population comprised 393 board directors from 55 Jordanian industrial companies. Purposive sampling was employed to select 346 board directors for the study sample. Data were collected via an online questionnaire, and the study used a descriptive-analytical approach to examine the study hypotheses. The study concludes that equity financing posi-tively impacts financial performance. Also, each of the angel investors, retained earnings, crowdfunding, and ploughed-back profit positively impact financial performance. The study recommends that Jordanian industrial companies focus on retained earnings as a funding source; what helps is the lower costs of obtaining financing from retained earnings compared with other funding sources. This study is unique because, as far as the researcher knows, it is the first to look at how angel investors, retained earnings, crowdfunding, and ploughed-back profit affect the financial performance of Jordanian industrial compa-nies all at the same time or separately.https://doi.org/10.2478/fman-2024-0010angel investorcrowdfundingequity financingploughed-back profitretained earningsreturn on equityg00l00 |
| spellingShingle | Almanaseer Sufian The Impact of Equity Financing on Financial Performance: Evidence from Jordan Foundations of Management angel investor crowdfunding equity financing ploughed-back profit retained earnings return on equity g00 l00 |
| title | The Impact of Equity Financing on Financial Performance: Evidence from Jordan |
| title_full | The Impact of Equity Financing on Financial Performance: Evidence from Jordan |
| title_fullStr | The Impact of Equity Financing on Financial Performance: Evidence from Jordan |
| title_full_unstemmed | The Impact of Equity Financing on Financial Performance: Evidence from Jordan |
| title_short | The Impact of Equity Financing on Financial Performance: Evidence from Jordan |
| title_sort | impact of equity financing on financial performance evidence from jordan |
| topic | angel investor crowdfunding equity financing ploughed-back profit retained earnings return on equity g00 l00 |
| url | https://doi.org/10.2478/fman-2024-0010 |
| work_keys_str_mv | AT almanaseersufian theimpactofequityfinancingonfinancialperformanceevidencefromjordan AT almanaseersufian impactofequityfinancingonfinancialperformanceevidencefromjordan |