Ownership Structure and Influence: A Multivariate Analysis of the Credit Risk Assessments

Abstract

The intention is to examine the determinants of the CRs for Jordanian companies listed in the Amman Stock Exchange (ASE). The analyses which will be used to fulfil this goal are: First, a descriptive analysis that relates to dependent and independent variables, univariate analysis which is related to independent variable descriptive of only one variable, bivariate and correlation analysis (between two variables), parametric and non-parametric tests. Second, multivariate's analyses are undertaken, which are related to all independent variables by using many statistical tools such as untransformed ordinary least squares (U_OLS), transformed ordinary least squares (T_OLS). Further, as to the application, the current study makes a contribution by investigating some variables relate to company ownership structure, namely, blockholders and governmental ownership, which together are the results reveal that the listings of blockholders and governmental owners of Jordanian companies in the ASE has no impact on CR. The results in summary confirm that leverage to multivariate analysis is associated negatively at 99% level of confidence with CR. The results of the static CR multivariate models confirm that the study that size, growth opportunity (Tobin's q), and (insider, family, foreign ownership) are very strongly positively at 99 % level of confidence associated with CR. But the percentage of blockholders, institution and governmental owners of Jordanian companies in the ASE are not a critical factor in the Jordanian context, except institution is negatively at 95 % level of confidence for first model.