Husni Samara

This study aims to examine the impact of board structure on firms’ value in Jordan. Panel regression estimates were used to analyze the data collected from forty-four non-financial firms that listed on the Amman Stock Exchange for the period 2010–2021. Random effects model was applied using a dependent variable (Tobin’s Q), four independent variables (board size, independent directors, female directors, and CEO duality), and four control variables (firm size, age, leverage, and liquidity). The result provides ample evidence that CEO duality exerts a direct positive effect on firm value in Jordan. However, none of the independent variables used has a significant impact on firm value, conflicting with agency and resources dependence theories. Firms value is significantly influenced only by two control variables, i.e., a positive impact of firm size and leverage at the 5% significance level. The results indicate the imperfection of corporate governance compliance by Jordanian listed firms in the area of ensuring maximum firm value. These results could be helpful to the policymakers in Jordanian listed firms to enhance their leadership qualities and satisfy CEO desires to avoid agency conflict.

This study investigates the key determinants of bank financial performance in the Arab Levant region from 2017 to 2023, focusing on profitability and market valuation, while analyzing internal and external factors, including inflation, capital adequacy, and bank size, amid the unique regional economic dynamics post-Corona Virus Disease in 2019. The study sample comprises 15 Jordanian, 6 Palestinian, 5 Lebanese, and 13 Syrian banks. A descriptive analytical method and STATA were used for the hypothesis testing. The results reveal that inflation, bank type, country, bank size, and capital adequacy positively influence profitability, whereas liquidity ratio negatively affects profitability. Other variables, such as gross domestic product growth rate, country, bank age, operational efficiency, coronavirus, and financial inclusion, have no significant impact on profitability. Additionally, the pandemic and financial inclusion had a statistically negative effect on market valuation, whereas the other variables had no significant influence. This study provides fresh insights into bank performance in the rarely studied Middle Eastern markets by exploring profitability and market valuation within a unique pre- and post-pandemic context, thus enriching our understanding of bank performance in emerging economies. It offers actionable strategies for policymakers and managers to enhance profitability, market value, and resilience by focusing on fintech and equitable financial practices to support societal resilience and economic stability in conflict-affected, emerging economies.

Type of the article: Research Article

Abstract
Board diversity plays a significant role in determining a corporate cash hoarding policy as it influences investment decisions and financial flexibility. This study investigates how investor protection laws moderate the relationship between board diversity and corporate cash hoarding in Europe. Using a sample of 484 listed firms from European capital markets during the period 2015–2023, the analysis captures the influence of board gender diversity on cash reserves and how investor protection levels (high/low) moderate such a relationship. These variables and vital control variables of cash holdings are examined using a panel fixed-effects model and generalized methods of moment (GMM), along with diagnostic tests of model validity. The empirical results reveal that the presence of female directors on the board positively affects corporate cash hoarding, and thus, this effect is more pronounced in countries with high and low investor protection. Additionally, the presence of female executives on the board tends to exhibit more cash reserves and liquidity buffers. The results also provide ample evidence that the high and low levels of investor protection strengthen the positive effect of gender diversity on cash hoarding. This study offers significant theoretical and practical implications for regulators, policymakers, and investors, providing suggestions on the use of investment decisions and contributing to the stability of liquidity management in European capital markets.