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Board Size, Managerial Ownership, Firm Performance, Amman Stock Exchange
The present study aims to investigate the effect of board size and managerial ownership on firm performance in Jordan, based on agency. The current study examined cross sectional data to test all hypotheses through using statistical software, SPSS 20, to analyze data on a sample of 60 firms (service firms) in Jordan as one of emerging markets in Asia. Multiple regression analysis instruments were used to test the hypothesis regarding the effect of board size and managerial ownership on firm performance with the effect of firm size as a control variable. The data used in the current study is obtained from the annual reports issued by Amman Stock Exchange (ASE) for the year 2014. Accounting data is used in the current study for the purpose of measuring the performances represented by ROA and ROE. I find that measures of board size statistically affect ROA and ROE. Board size affects ROA and ROE positively while firm size has no effect on firm performance. Unfortunately, managerial ownership does not affect both ROA and ROE. The current study presents practical evidence to the policy makers, academic and all beneficiary parties in emerging markets, specifically Jordan.