International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online)

The Impact of Capital Structure on Stock Return: Empirical Evidence from Amman Stock Exchange
Wasfi A. Al Salamat, Haneen H. H. Mustafa

The aim of this study is to examine the relationship between capital structure and stock return for all industrial firms listed in the Amman Stock Exchange over the period from (2007–2014) after controlling for the ratio of the market value per share to the book value per share, as a proxy of growth opportunities, the size of firm, the turnover ratio, as a proxy of stock liquidity, earnings per share, and return on assets. We use unbalanced panel data statistical approach for analysis. The empirical results suggested that there is a statistically significant negative effect of capital structure on stock return. In addition, stock liquidity and return on assets have statistically significant positive effect on stock return.

Full Text: PDF