Role of Capital Structure and Institutional Ownership to Improve the Financial Performance: Evidence from Jordan
Huthaifa Karasneh, Dr. Ashraf Bataineh, Dr. Mohamed Mahmoud Bshayreh
Abstract
The study aimed to identify the role of capital structure and institutional ownership to improve the financial
performance at Jordanian real estate companies. Study population consisted of all (34) Jordanian real estate
companies listed on the Jordan Stock Exchange during the period (2015-2017). The most important results of the study
include: there is a positive relationship for the capital structure and institutional ownership to improve the financial
performance at Jordanian real estate companies through (ROA, ROE, EPS), and also there is a positive relationship
between the company size measured by total assets and the financial performance of Jordanian real estate companies.
Based on the above results, researchers made a number of recommendations, such as the need for private investment
companies to support investments in the Jordanian real estate companies by raising the institutional ownership or
property ratios, in order to increase the amount of capital in these companies.
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