Journal of Social Sciences

Impact of Firm's Characteristics on Determining the Financial Structure On the Insurance Sector Firms in Jordan

Ghazi F. Momani, Majed A. Alsharayri and Mwafaq M. Dandan

DOI : 10.3844/jssp.2010.282.286

Journal of Social Sciences

Volume 6, 2010

Pages 282-286

Abstract

Problem statement: The question of the funding structure took a great importance in developed countries, but it has been neglected in developing countries. Approach: This study came with the aim to examine the effect of the following factors: Volume, assets structure, return on assets and growth rate on the capital structure of the insurance sector companies listed in Amman stock market, which numbered 25 companies which have been in operation between the years 2000 and 2007. Results: The selection of the above mentioned variables have been chosen on a basis of simple and multiple regression where the study shows a significant difference between the company’s special characteristic represented with volume, asset structure and return on assets, growth rate and capital structure. Conclusion/Recommendations: As long as the factors are positive which goes along with many other studies were undertaken by different authors, therefore the scholars advises using leverage to achieve the goals of the companies.

Copyright

© 2010 Ghazi F. Momani, Majed A. Alsharayri and Mwafaq M. Dandan. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.