European Journal of Business and Innovation Research (EJBIR)

EA Journals


Do Profitability And Size Affect Financial Leverage Of Jordanian Industrial Listed Companies (Published)

The main purpose of this study is to investigate the effect of Profitability, and firm’s Size as independent variables on leverage as proxy of Debt to Total Assets ratio (leverage) as dependent variable. A sample of 52 Jordanian Industrial listed companies on Amman Stock Exchange (ASE) for the year ended Dec.31, 2013 was selected. The results of the research show that there is a significant effect of profitability in for of ROA , and size on leverage of industrial companies , on the contrary , ROE has not. Therefore, industrial companies may enhance the profitability of their firms by maximizing the profit, and increasing financial assets compared with total assets. So, the study concludes some recommendations that are beneficial to the stakeholders.

Keywords: Debt Ratio, Industrial Companies, Jordan, Leverage


Banks set up to operate in accordance with the Islamic Sharia’s principles have expanded in the last two decades. The basic difference between Islamic and non-Islamic banks lies in the fact that the former operate on an equity-participation system in which a predetermined rate of return is not guaranteed, whereas the latter’s operation is based on both equity and debt systems that are driven by interest. This paper assesses the effectiveness of marketing strategies by drawing on quantitative characteristics derived from a sample of Islamic banks in Jordan. It provides recommendations as to the measures to be adopted in order to improve the marketing effectiveness of the Islamic bank in Jordan

Keywords: Islamic Bank, Jordan, Strategic Marketing

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