Corporate Governance and Employee Productivity: Evidence from Jordan
This research paper aims to investigate the impact of ownership concentration, insider ownership, and board size on employee productivity for 136 Jordanian public shareholding firms listed on the Amman Stock Exchange (ASE) from 2012 to 2021. Ownership concentration has been measured by Herfindahl–Hi...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2024-09-01
|
| Series: | International Journal of Financial Studies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7072/12/4/97 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850040841793437696 |
|---|---|
| author | Abdullah Ajlouni Francisco Bastida Mohammad Nurunnabi |
| author_facet | Abdullah Ajlouni Francisco Bastida Mohammad Nurunnabi |
| author_sort | Abdullah Ajlouni |
| collection | DOAJ |
| description | This research paper aims to investigate the impact of ownership concentration, insider ownership, and board size on employee productivity for 136 Jordanian public shareholding firms listed on the Amman Stock Exchange (ASE) from 2012 to 2021. Ownership concentration has been measured by Herfindahl–Hirschman Index (HHI), whereas insider ownership and board size have been represented as the proportion of shares held by insiders and by the number of board members, respectively. Lastly, employee productivity has been measured using a data envelopment analysis (DEA) tool. We employed ordinary least squares regression (OLS) including firm-year-fixed effects. Our empirical results indicate a non-linear relation between ownership concentration and employee productivity, whereby the productivity of employees increases in firms with a proportion of ownership concentration less than 60%. In addition, we found a non-linear relation between insider ownership and employee productivity, whereby the productivity of employees increases in firms with proportion of insider ownership less than 50%. Moreover, we found a non-linear relation between board size and employee productivity, whereby the productivity of employees increases in firms that have less than 11 board members. Our outcome contributed to the knowledge found in the previous literature, as it is the first to highlight the productivity of employees in emerging economies, such as the economy in Jordan. Furthermore, our findings could be useful for the Jordan Securities Commission (JSC) and the ASE on their continuous process to improve and develop corporate governance instructions. |
| format | Article |
| id | doaj-art-db5fbb0a75324415948d2ed02eb680aa |
| institution | DOAJ |
| issn | 2227-7072 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj-art-db5fbb0a75324415948d2ed02eb680aa2025-08-20T02:55:57ZengMDPI AGInternational Journal of Financial Studies2227-70722024-09-011249710.3390/ijfs12040097Corporate Governance and Employee Productivity: Evidence from JordanAbdullah Ajlouni0Francisco Bastida1Mohammad Nurunnabi2International School of Doctoral Studies, University of Murcia, 30003 Murcia, SpainDepartment of Accounting, Prince Sultan University, P.O. Box 66833, Riyadh 11586, Saudi ArabiaDepartment of Accounting, Prince Sultan University, P.O. Box 66833, Riyadh 11586, Saudi ArabiaThis research paper aims to investigate the impact of ownership concentration, insider ownership, and board size on employee productivity for 136 Jordanian public shareholding firms listed on the Amman Stock Exchange (ASE) from 2012 to 2021. Ownership concentration has been measured by Herfindahl–Hirschman Index (HHI), whereas insider ownership and board size have been represented as the proportion of shares held by insiders and by the number of board members, respectively. Lastly, employee productivity has been measured using a data envelopment analysis (DEA) tool. We employed ordinary least squares regression (OLS) including firm-year-fixed effects. Our empirical results indicate a non-linear relation between ownership concentration and employee productivity, whereby the productivity of employees increases in firms with a proportion of ownership concentration less than 60%. In addition, we found a non-linear relation between insider ownership and employee productivity, whereby the productivity of employees increases in firms with proportion of insider ownership less than 50%. Moreover, we found a non-linear relation between board size and employee productivity, whereby the productivity of employees increases in firms that have less than 11 board members. Our outcome contributed to the knowledge found in the previous literature, as it is the first to highlight the productivity of employees in emerging economies, such as the economy in Jordan. Furthermore, our findings could be useful for the Jordan Securities Commission (JSC) and the ASE on their continuous process to improve and develop corporate governance instructions.https://www.mdpi.com/2227-7072/12/4/97corporate governanceownership concentrationboard sizeinsider ownershipemployee productivityfirm performance |
| spellingShingle | Abdullah Ajlouni Francisco Bastida Mohammad Nurunnabi Corporate Governance and Employee Productivity: Evidence from Jordan International Journal of Financial Studies corporate governance ownership concentration board size insider ownership employee productivity firm performance |
| title | Corporate Governance and Employee Productivity: Evidence from Jordan |
| title_full | Corporate Governance and Employee Productivity: Evidence from Jordan |
| title_fullStr | Corporate Governance and Employee Productivity: Evidence from Jordan |
| title_full_unstemmed | Corporate Governance and Employee Productivity: Evidence from Jordan |
| title_short | Corporate Governance and Employee Productivity: Evidence from Jordan |
| title_sort | corporate governance and employee productivity evidence from jordan |
| topic | corporate governance ownership concentration board size insider ownership employee productivity firm performance |
| url | https://www.mdpi.com/2227-7072/12/4/97 |
| work_keys_str_mv | AT abdullahajlouni corporategovernanceandemployeeproductivityevidencefromjordan AT franciscobastida corporategovernanceandemployeeproductivityevidencefromjordan AT mohammadnurunnabi corporategovernanceandemployeeproductivityevidencefromjordan |