The Impact of Equity Financing on Financial Performance: Evidence from Jordan Cover

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The Impact of Equity Financing on Financial Performance: Evidence from Jordan

Foundations of Management

Volume 16 (2024): Issue 1 (January 2024)

By: Sufian Almanaseer

Open Access

|Sep 2024

Figures & Tables

Study model
(Source: Author's own research) — Study model (Source: Author's own research)

Results of the simple linear regression (Source: Author's research)

Variables	R	R²	Adjusted R²	Durbin–Watson	F Change	B	Std. Error	Beta	t	Sig.	Decision
AI ➔ ROE	0.487^a	0.237	0.234	1.929	97.140	0.466	0.047	0.487	9.856	0.000	Accepted
RE ➔ ROE	0.496^a	0.246	0.243	1.898	102.049	0.475	0.047	0.496	10.102	0.000	Accepted
CF ➔ ROE	0.487^a	0.237	0.234	1.949	97.100	0.494	0.050	0.487	9.854	0.000	Accepted
PBP ➔ ROE	0.477^a	0.227	0.225	2.018	92.126	0.464	0.048	0.477	9.598	0.000	Accepted

Reliability analysis (Source: Author's research)

Variables	Cronbach's alpha value
Angel Investors (AI)	0.831
Retained Earnings (RE)	0.834
Crowdfunding (CF)	0.837
Ploughed-Back Profit (PBP)	0.835
Return on Equity (ROE)	0.870

Correlation analysis (Source: Author's research)

	AI	RE	CF	PBP	ROE
AI	1.000	-	-	-	-
RE	0.679	1.000	-	-	-
CF	0.662	0.534	1.000	-	-
PBP	0.572	0.657	0.655	1.000	-
ROE	0.487	0.496	0.487	0.477	1.000

Descriptive analysis (Source: Author's research)

	AI	RE	CF	PBP	ROE
Mean	2.89	3.12	2.86	2.65	2.59
Median	2.75	3.00	2.80	2.50	2.50
Mode	2.50	2.75	2.80	2.25	2.50
Std. deviation	0.70	0.70	0.66	0.69	0.67
Minimum	1.00	1.00	1.60	1.00	1.00
Maximum	4.50	4.75	4.80	4.75	5.00
Sum	913.00	985.50	901.30	836.50	817.80

Results of the multiple linear regression (Source: Author's research)

Dependent Variable
Financial Performance (ROE)	Independent Variable	B	Std. Error	Beta	T-test	Sig
	Equity Financing	0.200	0.016	0.570	12.280	0.000
	R	0.570	-	-	-	-
	R²	0.325	-	-	-	-
	Adjusted R²	0.323	-	-	-	-
	F	150.806	-	-	-	-
	Durbin–Watson (DW)	1.846	-	-	-	-

DOI: https://doi.org/10.2478/fman-2024-0010 | Journal eISSN: 2300-5661 | Journal ISSN: 2080-7279

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Language: English

Page range: 157 - 176

Published on: Sep 5, 2024

Published by: Warsaw University of Technology

In partnership with: Paradigm Publishing Services

Publication frequency: 1 issue per year

Keywords:

angel investor,

equity financing,

ploughed-back profit,

retained earnings,

return on equity

Related subjects:

Computer sciences,

Business computing,

Business and economics,

Business management,

Management accounting, financial controlling, cost calculation, investment

© 2024 Sufian Almanaseer, published by Warsaw University of Technology
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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