The Mediating Effect of the Managerial Ownership towards the Influence of the Board of Directors on the Firm Performance among Jordanian Public Shareholders Companies

Prior studies that dealt with corporate governance mechanisms have witnessed high significant that created some new trends. This study aims to be engaged in such trends through investigating the relationship between the board of directors as one of the corporate governance mechanisms and firm performance with the presence of managerial ownership as a mediating variable in Jordan as one of developing countries. This study used the panel data method to analyze data for a sample of ۱۸۰ companies listed on the Amman Stock Exchange (ASE) for the period from ۲۰۰۹ to ۲۰۱۷. Three board of directors dimensions are employed, which are: board size, board independence, and CEO duality, and mediating variable is managerial ownership. The current study used Tobin’s Q to assess firm performance. Meanwhile, the current study provides evidence that the mediating of managerial ownership has a significant negatively on the association between mechanisms of the board of directors, which are board size, board independence, and CEO duality with firm performance measured by (TQ). The findings of this study confirm empirical research continuing to find a new performance measurement to gain a real form of firm performance. Therefore, the evidence of this study provides empirical evidence to stakeholders, managers and interested parties to support them for its decision.

Keywords:

Corporate Governance , Board of Directors , Firm’s performance , Managerial Ownership