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Macroeconomic determinants of corporate performance and failure: evidence from an emerging market the case of Jordan
Faculty of Commerce - Papers (Archive)
  • Rami Zeitun, University of Western Sydney
  • Gary Tian, University of Western Sydney
  • Steve Keen, University of Western Sydney
RIS ID
22433
Publication Date
1-1-2007
Publication Details

Zeitun, R., Tian, G. G. & Keen, S. (2007). Macroeconomic determinants of corporate performance and failure: evidence from an emerging market the case of Jordan. Corporate Ownership and Control, 5 (1), 179-194.

Abstract

This study investigates the impact of aggregate economic risk on a company’s performance and failure in a panel estimation using 167 Jordanian companies during 1989-2003. Our finding shows that unanticipated changes in interest rate negatively and significantly affect firms’ performance measured by ROA, which suggests that an interest rate rise increases the cost of borrowing and then further negatively affects a firm’s profit. We also found that both the production manufacturing index and Islamic credit facilities positively and significantly affect a firm’s performance. The positive and significant impact of Islamic credit facilities reflects the importance and the significance of the role of Islamic credit facilities in increasing a firm’s performance measured by ROA.

Link to publisher version (URL)
Corporate Ownership and Control
Citation Information
Rami Zeitun, Gary Tian and Steve Keen. "Macroeconomic determinants of corporate performance and failure: evidence from an emerging market the case of Jordan" (2007) p. 179 - 194
Available at: http://works.bepress.com/gary-tian/102/