ISSN: 2222-6990
Open access
This paper examines the relationship between corporate governance, ownership structures, and firm performance in Jordan's emerging market. Jordan presents a unique case study due to its dynamic environment and concentrated ownership, with over 60% of companies owned by the state and families. The review synthesizes recent empirical evidence on various ownership types in Jordanian firms. It analyzes their impact on financial and market performance, as well as the moderating effect of board characteristics. The study employs a literature review approach, drawing from recent peer-reviewed articles, regulatory documents, and empirical papers focused on Jordan. Key findings indicate that institutional ownership enhances firm performance across industries, improving governance and strategic management. Government involvement shows a nuanced effect, with moderate involvement positively correlated with performance, while high involvement has a negative impact. Foreign control generally proves beneficial, particularly in banking and insurance sectors, bringing fresh perspectives and international experience. Ownership concentration demonstrates both positive monitoring effects from large shareholders and negative entrenchment effects at high levels. The review also explores how board characteristics influence the performance-ownership relationship. Research implications span theoretical advancements, government policy recommendations for Jordan and other emerging markets, and investment strategies. The paper acknowledges limitations and suggests areas for future research, including longitudinal studies, sector-specific investigations, and improved measurement of ownership effects. This comprehensive analysis aims to assist academics, regulators, and managers in enhancing corporate governance processes to improve firm performance in Jordan and comparable economies.
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(Alrwabdah & Lok, 2024)
Alrwabdah, F., & Lok, C.-L. (2024). Corporate Governance, Ownership Structures and Firm Performance: Evidence from Jordan. International Journal of Academic Research in Business and Social Sciences, 14(8), 2348–2373.
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