Journal of Business & Economic Policy

Corporations Characteristics Affecting its Profitability Empirical Study from Jordanian Industrial Corporations
Dr. Mustafa A.A. AL-Qudah, Dr. Fouzan Al Qaisi, Dr. Asem Tahtamouni

Abstract
Purpose – This research aims to: identify The Effect of Corporation’s Characteristics on its Profitability on Jordanian Industrial Corporations (JIC) Listed on Amman Stock Exchange (ASE) from the year 2011 to 2015.The Profitability is measured by Return on Sales (ROS) and Earnings per Share (EPS). Design/ Methodology/ Approach: the population of the study includes 72 industrial corporations; eight of these corporations were excluded from the study due to financial difficulties. While (19) of them were listed in First Market, (33) corporations listed in Second Market and the other (12) were listed in Third Market .Financial data had been analyzed using multiple linear regression of cross sectional and time series data using statistical analysis program (E-views).Findings-the major findings show that there is positive statistical impact of the following independent variables, Corporation’s Size, Institutional Investor, Corporation’s age, and Productivity On Corporation’s Profitability. The study shows that there is a negative statistical impact of Debt Ratios on Corporation’s Profitability. Also, there is a negative impact of Liquidity Ratios on Corporation’s Profitability but it wasn’t statistically significant at a = 0.05.Originality/Value–This is one of the few studies which attempts to reduce the gap of profitability studies based on evidence from developed and developing countries, because most profitability studies up to date are based on evidence from developed countries, but there are few studies that provide evidence from developing countries.

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