Debt Ratio Analysis and Firm Investment: Evidence from Jordan

Yıl 2012, Cilt: 2 Sayı: 1, 21 - 26, 01.03.2012

Faris Nasif Al-shubiri

Öz

This paper examines whether the total debt ratio and bank ratio of listed companies have any impact on their fixed investment during the years in 2004-2009, and whether this impact, if it existed, differed among companies with differing investment opportunities. The study has reveals the total debt ratio did have a negative impact on fixed investment among Jordanian listed companies. It has also been found that the bank ratio had a stronger impact on fixed investment than the total debt ratio.

Anahtar Kelimeler

Bank loan, Debt, Investment, Jordan