Corporate Governance and Non-Jordanian Share Ownership: the Case of Amman Stock Exchange

Abstract

In many countries institutional investors have become dominant players in the financial markets. This paper aims to examine whether better corporate governance practices increase attractiveness of Jordanian shares for foreign investors. In order to achieve the above objective a sample of 183 companies listed on the Amman Stock Exchange for the year 2010 is employed. The results reveal that institutional ownership, ownership concentration, total assets and audit size are related to non-Jordanian investor. This result builds on the importance of non-Jordan shareholders in enhancing corporate governance mechanism.