This study offers new insights to help improve our understanding of the impact of female representation on firm performance, as measured by return on assets (ROA) and return on equity (ROE) and using non-financial institution data from Jordan. The study utilizes a lagged dependent variable in the regression models by employing the generalized method of moments (GMM) for dynamic panel analysis of the panel data of 77 companies over the period 2008-2018. The results of the regression analysis reveal that leverage, board size, and firm size were positive and statistically significant, while the age of the firm was statistically significant but had a negative effect, which indicates the existence of a relationship between these variables and the performance of Jordanian companies. However, the results fail to show any effect of the impact of female representation on firm performance as measured by return on assets and return on equity. This finding might be attributed to the low representation of females on non financial institution boards, which was only 3.63%, a very low figure compared to that of males on Jordanian boards. Therefore, our results are valid only for Jordanian firms and cannot be generalized to ones in other countries, which might have different cultural and legal perspectives.

While the effect of ownership structure on the level of cash holdings has been widely examined, that of government ownership has been understudied. Using a generalized method of moments (GMM) estimation on the panel data of 107 Jordanian firms listed on the Amman Stock Exchange, this research adds to the limited literature on the relationship between government ownership and the level of corporate cash holdings. Consistent with agency theory, the findings reveal that firms with government ownership hold higher levels of cash and that such ownership creates agency problems. Other types of ownership, namely individual, foreign, and block holders, were found to be insignificant. The results provide an important implication for policy makers in Jordan: in order to reduce agency problems associated with government ownership, the government should revise its ownership policy and ensure it specifies clear purposes and expectations of business ownership and how it intends to exercise its rights as owner.

No one doubts that COVID-19 will widen the budget deficit in most, if not all, developing countries. This development (widening public deficit) is particularly important for countries like Jordan. Indeed, since 1965, all governments have witnessed a deficit in their budgets. Within this context, the primary purpose of this paper is to examine the impact of real gross domestic product (GDP) on the fiscal deficit in the Jordanian economy. To examine the impact of real GDP on the real fiscal deficit of Jordanian government, we use annual data that covers the period 1992–2019 and use some relevant econometric techniques (stationarity test, co-integration, vector error correction model (VECM), and variance analysis) to realize the primary objective of the paper. The documented evidence indicates that the underlying long-run relationship between fiscal deficit and GDP is stable. In addition, the results indicate that real GDP takes on increasing weight in explaining the variability in the fiscal deficit over time. Considering the fact that real GDP affects (positively) the fiscal deficit, the government should use the implications of COVID-19 on the budget, as a “trigger” point for change. The government should re-examine its public spending and where possible, seek savings, and greater spending efficiency levels. The government must also re-examine the current tax law, and make the necessary changes to make the system generate not only more tax revenues but more diversified tax revenues as well.

This research provides new evidence on financing constraints on corporate fixed investment by emphasizing the role of cash holdings as a precautionary source of funds. Applying GMM estimates to a sample of 106 Jordanian firms, the results suggest that firms follow trade-off theory in financing their investments but are financially constrained. The coefficient of the cash holdings variable appears to be negative in the fixed-investment regression, suggesting that when firms face financing shocks, they draw upon their precautionary cash reserves to smooth the path of their expenditure on fixed assets.

Duncker & Humblot - Berlin. Ein Forum für die Wissenschaft seit 1798

Public finance in Jordan has always been poor. Indeed, not a single Jordanian government has managed to have a surplus in its budget. In addition, and within the context of the already high, and rising public debt, COVID-19 will not only exacerbate this problem even further. This is why the main purpose of this paper is to estimate tax buoyancy in Jordan. This is a timely issue to examine because once the Jordanian economy goes back to its normal growth rates (after COVID-19), the status of the fiscal deficit (and public debt) will depend, to a large extent, on tax buoyancy. To estimate the impact of Gross Domestic Product (GDP) on tax revenues (tax buoyancy), the paper uses annual data (1992 2019) and time series techniques including stationarity tests, Johnsen cointegration test, and vector error correction model (VECM). Based on the empirical estimations, one can state that tax buoyancy in Jordan is less than one. This indicates that once the Jordanian economy goes back to its pre-COVID-19 growth rates, the increase in total tax revenues will not reciprocate the increases in GDP. This is unfortunate, given the already high existing public debt level. However, what is encouraging is the fact that sales tax and corporate tax are buoyant. The only way to increase tax buoyancy (and total tax to GDP ratio) is to make the sources of tax revenues more diversified and more progressive.