An-Najah University Journal for Research - B (Humanities)

The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014)

Article info

2017-07-23
2018-03-14
379 - 406

Keywords

  • Corporate Governance Mechanisms
  • Capital Structure.

Abstract

The study aimed at testing the impact of corporate governance on the capital structure of (22) companies listed in the Palestine Exchange. The researcher adopt the quantitative method and content analysis to the fi-nancial statements of the non-financial companies during the period 2011 to 2014. The research used the econometric statistical approach and the Generalized Least Squares (GLS) regression Model, using the random effects method. The results showed that there is significant negative ef-fect for the independent variables (the independence of the Directors’ Board and to CEO duality) on the capital structure. However, significant positive affect for the independent variables (foreign ownership and Compensations Committee) on the capital structure. Consequently, the study recommended preserving the independence of executive boards in the Palestinian companies, also avoiding the duplication of the executive officer work with the Directors’ Board membership. Moreover, re-drafting the laws of investment in Palestine to encourage the foreign in-vestors to support and invest in the Palestinian private sector, and work-ing on establishing the compensations committees in the Palestinian com-panies. Finally, the study recommended the government to force listed companies to compliance the guidance of Palestinian governance.

Recommended Citation

Abushammala, S., & Abu Lila, N. (2019). The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014). An-Najah University Journal for Research - B (Humanities), 33(3), 379–406. https://doi.org/10.35552/0247-033-003-002
[1]S. Abushammala and N. Abu Lila, “The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014),” An-Najah University Journal for Research - B (Humanities), vol. 33, no. 3, pp. 379–406, Mar. 2019, doi: 10.35552/0247-033-003-002.
Abushammala, Sami, and Nael Abu Lila. “The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014).” An-Najah University Journal for Research - B (Humanities), vol. 33, no. 3, Mar. 2019, pp. 379–406. Crossref, https://doi.org/10.35552/0247-033-003-002.
1.Abushammala S, Abu Lila N. The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014). An-Najah University Journal for Research - B (Humanities) [Internet]. 2019 Mar;33(3):379–406. Available from: http://dx.doi.org/10.35552/0247-033-003-002
Abushammala, Sami, and Nael Abu Lila. “The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014).” An-Najah University Journal for Research - B (Humanities) 33, no. 3 (March 2019): 379–406. https://doi.org/10.35552/0247-033-003-002.

أثر حوكمة الشركات على هيكل رأس المال للشركات غير المالية المدرجة في بورصة فلسطين للفترة (2011-2014)

معلومات المقال

2017-07-23
2018-03-14
379 - 406

الكلمات الإفتتاحية

  • Corporate Governance Mechanisms
  • Capital Structure.

الملخص

هدفت هذه الدراسة إلى اختبار أثر حوكمة الشركات على هيكل رأس المال للشركات غير المالية المدرجة في بورصة فلسطين والبالغ عددها (22) شركة، واعتمد الباحثان المنهج التحليلي الكمي القياسي في تحليل البيانات المالية للشركات غير المالية والمصرح بها خلال الفترة 2011م إلى2014م، واستخدم الباحثان أساليب الإحصاء القياسي باستخدام نموذج التأثيرات العشوائية للوصول لنتائج الدراسة. ولقد أظهرت نتائج الدراسة أن هناك أثراً سلبيا وذو دلالة إحصائية للمتغيرات المستقلة (استقلالية مجلس الإدارة والجمع بين الرئيس التنفيذي/عضوية مجلس الإدارة) على هيكل رأس المال، كما وأظهرت الدراسة أن هناك أثراً إيجابياً وذو دلالة إحصائية للمتغيرات المستقلة (الملكية الأجنبية ولجنة المكافآت) علي هيكل رأس المال. وأوصت هذه الدراسة بضرورة الحفاظ على استقلالية المجالس الإدارية في الشركات الفلسطينية، والتأكيد على ضرورة الالتزام بعدم ازدواجية عمل الرئيس التنفيذي مع عضوية مجلس الإدارة وإعادة صياغة قوانين الاستثمار في فلسطين والعمل على الاهتمام بتشكيل لجان المكافآت في الشركات الفلسطينية، وكذلك لا بد من دور للحكومة في إجبار الشركات على الالتزام بقواعد الحوكمة ومتابعتها.

Recommended Citation

Abushammala, S., & Abu Lila, N. (2019). The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014). An-Najah University Journal for Research - B (Humanities), 33(3), 379–406. https://doi.org/10.35552/0247-033-003-002
[1]S. Abushammala and N. Abu Lila, “The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014),” An-Najah University Journal for Research - B (Humanities), vol. 33, no. 3, pp. 379–406, Mar. 2019, doi: 10.35552/0247-033-003-002.
Abushammala, Sami, and Nael Abu Lila. “The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014).” An-Najah University Journal for Research - B (Humanities), vol. 33, no. 3, Mar. 2019, pp. 379–406. Crossref, https://doi.org/10.35552/0247-033-003-002.
1.Abushammala S, Abu Lila N. The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014). An-Najah University Journal for Research - B (Humanities) [Internet]. 2019 Mar;33(3):379–406. Available from: http://dx.doi.org/10.35552/0247-033-003-002
Abushammala, Sami, and Nael Abu Lila. “The Impact of Corporate Governance on the Capital Structure of Non-Financial Companies Listed in the Palestinian Stock Exchange Market During (2011-2014).” An-Najah University Journal for Research - B (Humanities) 33, no. 3 (March 2019): 379–406. https://doi.org/10.35552/0247-033-003-002.

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