Business Risk Impact on Capital Structure: A Case of Jordan Industrial Sector

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C: FINANCE16AJK

Business Risk Impact on Capital Structure: A Case of Jordan Industrial Sector

Mohd I M Alnajjar
Mohd I M Alnajjar American University of Madaba
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Abstract

Purpose: This research study aims to investigate that how industrial sector firms decide about their capital structure with reference to risk exposure. This research concludes about the manager’s behavior with respect to business risk, profitability, firm size and sales growth. Design/methodology/approach: Data of industrial sector of Jordan, over the period of 2009-2011 is used for this study. Linear regression model is used for data analysis. Findings: This research study results show that industrial sectors firm’s managers are risk averse, whereas sales growth and firm size are positively related to financial policy decision. Profitability is negatively related with financial policy of the firm.

Business Risk Impact on Capital Structure: A Case of Jordan Industrial Sector

Purpose: This research study aims to investigate that how industrial sector firms decide about their capital structure with reference to risk exposure. This research concludes about the manager’s behavior with respect to business risk, profitability, firm size and sales growth. Design/methodology/approach: Data of industrial sector of Jordan, over the period of 2009-2011 is used for this study. Linear regression model is used for data analysis. Findings: This research study results show that industrial sectors firm’s managers are risk averse, whereas sales growth and firm size are positively related to financial policy decision. Profitability is negatively related with financial policy of the firm.

Mohd I M Alnajjar
Mohd I M Alnajjar American University of Madaba

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Mohd I M Alnajjar. 2015. “. Global Journal of Management and Business Research – C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C1): .

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: E22
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Business Risk Impact on Capital Structure: A Case of Jordan Industrial Sector

Mohd I M Alnajjar
Mohd I M Alnajjar American University of Madaba

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