Does Financing Decision Affect a Companies' Growth?

Abstract

This study investigates the impact of financing decisions on Jordanian shareholder firms' growth. The data was collected for 120 companies listed in the Amman Stock Exchange during the period 2008-2018. To test the relationship between the study variables, we used the two-step difference GMM and the two-step system GMM. In general, the results are consistent with the theory and previous findings, confirming a significant relationship between financing decisions and firms internal and external growth. Furthermore, the study's findings suggest that firms need to modify their capital structure mix to obtain the highest benefit level.