Does Financing Decision affect Company Growth? Empirical Evidence from Selected Companies in Jordan

Abstract

The study investigates the impact of financing decisions on Jordanian firms' growth. Therefore, it collects data for 120 companies listed on the Amman Stock Exchange during 2008-2018. The study used a two-step difference and system GMM to test the relationship between variables. In general, results are consistent with the theory and previous findings, confirming a significant relationship between the financing decisions of firms and their performance represented by their growth. Furthermore, the study's findings suggest that firms should modify their capital structure mix to get the highest benefit level.