Capital structure and corporate performance: evidence from Jordan

Rami Zeitun, Gary G. Tian

Research output: Contribution to journalArticlepeer-review


This study is to investigate the effect which capital structure has had on corporate performance using a panel data sample representing of 167 Jordanian companies during 1989-2003. Our results showed that a firm’s capital structure had a significantly negative impact on the firm’s performance measures, in both the accounting and market’s measures. We also found that the short-term debt to total assets (STDTA) level has a significantly positive effect on the market performance measure (Tobin’s Q). The Gulf Crisis 1990-1991 was found to have a positive impact on Jordanian corporate performance while the outbreak of Intifadah in the West Bank and Gaza in September 2000 had a negative impact on corporate performance.
Original languageEnglish
Article number3
Pages (from-to)40-61
Number of pages22
JournalAustralasian Accounting, Business and Finance Journal
Issue number1
Publication statusPublished - 2007
Externally publishedYes


  • corporate performance
  • corporate failure
  • capital structure
  • Jordan


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