Abstract

a) Preamble The contractual agreement represents the lease between the two Parties, the lessee and the lessor, and gives the contract to the lessee the right to use certain assets for a specific time period owned by the lessor in return for periodic payments paid by the tenant for the owner. the use of leases have largely spread because of the advantages offered by the leases as an alternative to owning originally included leases many magazines including ships, aircraft , land , and buildings. The leasing historically runs from the date of the Pharaohs and in Iraq, thousands of years ago people were working in the lease, such as rental of agricultural land and agricultural equipment. Leasing was well known in Islamic economics. In fact leasing exists in Islamic economics and is named Ijara; Ijara leads to acquisition. Leasing currently is based on Western experience, as with regard to leasing in the modern era, after the industrial revolution and after the Second World War, there was a need for the use of industrial machinery and equipment to keep pace with developments in those countries were not allowed at the time to own land were established leasing companies to help secure the land as well to finance industrial machinery and equipment, which was to keep pace with the industrial revolution. Aftermath World War II, leasing companies were specifically established in U.S.A. and Europe, where banks were not permitted to that do this job, and at the time when banks noticed that the leasing companies are working well and contribute to the growth of the economies of their countries, the banks asked to be allowed to exercise the lease and were allowed to do so. The banks at the moment were the biggest beneficiaries of the system of leasing. In this study, the researcher will analyze the data of industrial sector companies in Jordan for a number of years in an attempt to see the impact the leasing decisions on the performance of these companies.