THE RELATIONSHIP BETWEEN FINANCING DECISION AND INVESTMENT DECISION FACTORS ON THE FIRM PERFORMANCE IN AMMAN STOCK EXCHANGE

Abstract

Amman Stock Exchange (ASE) is one the developing market in Middle East area, but it has some unique features associated with continuous struggles to survive. With these conditions the possibility of financial reporting quality specially in relation to earning management become questionable. However, studies in developed countries revealed that there are relations between financing decision (short term debt, long term debt, debt ratio, equity) investment decision (capital expenditure, investment scale) and firm performance nonfinancial firms listed at Amman Stock Exchange (ASE). Therefore, this study is an exploration into the Amman Stock Exchange (ASE). to increase the knowledge regarding the firm performance, its antecedents, and its connection with firm performance. The study has different variables and relation, this study design has some characteristics, which formulate its design and include; scientific research, deductive research; qualitative research, and secondary data research. The model is composed of ten variables. The data collected from secondary data reports published by the Amman Stock Exchange (ASE) or by the companies in its official websites. The dataset has 148 companies in 10 years from 2008 to 2019 and model relations analysis are based on STATA regression models.