The Impact of Capital Structure on Performance at the Corporate Service Sector in Jordan

Abstract

The study aims to measure the impact of capital structure and investment in assets on net income and return on investment in the services sector during the period of (2016-2018). The study population consists of all corporate service companies in Jordan. (12) companies were randomly selected. The statistical methods were used to analyze the study data, represented by the arithmetic mean, standard deviation, percentage, (T-Test) and linear regression analysis, by using statistical analysis (SPSS). The results of the study show a statistically significant impact of capital structure and total assets on net income in the corporate service companies in Jordan while these results show that there was no statistically significant impact of capital structure and total assets on return on investment in the corporate service companies in Jordan. The study recommends that companies, when making a financing decision, should choose the appropriate mix of the capital structure in a way that increases the company's returns and makes the weighted cost at the lowest level.