Role of Capital Structure and Institutional Ownership to Improve the Financial Performance: Evidence from Jordan

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.