Debt Ratio Analysis and Firm Investment: Evidence from Jordan

Authors

  • Faris Nasif Al-Shubiri Amman Arab University - Jordan College of Business Department of Finance and Banking Assistent Professor

Abstract

This paper examines whether the total debt ratio and bank ratio of listed companies have any impact on their fixed investment during the years in 2004-2009, and whether this impact, if it existed, differed among companies with differing investment opportunities. The study has reveals the total debt ratio did have a negative impact on fixed investment among Jordanian listed companies. It has also been found that the bank ratio had a stronger impact on fixed investment than the total debt ratio.

Keywords: Bank loan; Debt; Investment; Jordan

JEL Classifications: G31, G32, E22 

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Published

2011-12-02

How to Cite

Al-Shubiri, F. N. (2011). Debt Ratio Analysis and Firm Investment: Evidence from Jordan. International Journal of Economics and Financial Issues, 2(1), 21–26. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/81

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Articles