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This study aims to examine the impact of sector market competition on the ownership structure of publicly listed firms in the Gulf Cooperation Council (GCC) countries.

The authors employed the system-Generalized Method of Moments (GMM) model for panel data, utilizing over 93,000 data points from 6,215 firm-years across six GCC countries from 2010 to 2020.

The results reveal a statistically significant negative relationship between total block holders and institutional ownership for both Herfindahl–Hirschman and Tobin’s-Q competition proxies. This finding suggests that companies operating in monopolistic or oligarchic sectors are likely to attract block holder investors. Moreover, various firm- and country-level factors, including return on assets, growth, size, gross domestic product and political crisis, also exhibit significant relationships with specific ownership variables.

Investigating the influence of competition on block holders’ ownership in the GCC region may provide new insights into the role of competitive markets in fostering economic development, promoting investor protection and shareholder rights, enhancing market efficiency and competitiveness and implementing effective reform policies and strategies.

Despite the significant contribution of GCC countries to global oil commodities, limited market competition research has been conducted in these markets. This study aims to fill this gap by investigating the impact of various firm-, industry-, and country-level factors on firm ownership structure in the GCC region, focusing on the influence of market competition.

This study aims to examine the influence of institutional quality on the relationship between economic growth and banking sector concentration.

The sample of our study covers 15 Middle East and North African (MENA) countries over the period 1996-2010. The results are estimated based on static and dynamic panel data analysis.

The results reveal a positive and significant relationship between economic growth and each banking concentration and institutional quality. The results support the argument that banking concentration and institutional quality are matters for growth in MENA countries. The results also indicate that the interaction variable between concentration and institutional quality is negative and significant.

Building on Petersen and Rajans’ (1995) argument, this study suggests that in the absence of an appropriate level of institutional quality, banks in MENA region can depend on their market power to protect their benefits. This can be achieved by building long-term relationships with their borrowers to provide continuing credit and subsequently enhancing economic growth.

Under the low level of institutional quality in MENA countries, regulators and decision-makers should thoroughly think before imposing any policy that aims to restrict banking market power because such action could harm the economy.

In developing countries, banking concentration may have a positive impact on the economy. This outcome may lead to an improvement in the standard of living for the society.

This is the first known study, to the best of our knowledge, that examines the role of institutional quality in shaping the relationship between economic growth and banking concentration in MENA countries. The authors opted to select MENA countries’ data because they generally reflect an institutional setting similar to many developing countries. Therefore, the results could be applicable in many developing economies and will encourage other researchers to investigate this proposition.

The purpose of this paper is to examine if the simultaneous openness to trade and capital account can promote financial sector development.

Based on a sample of 12 Arab countries over the period from 1985 to 2011, the data were analyzed using the dynamic and static panel data analysis. In particular, the authors apply three estimate techniques: the generalized method of moments, fixed effects and random effects.

The empirical results do not support the simultaneous openness hypothesis. Even trade and financial openness have an important separate role in enhancing financial sector development; their interaction effect is harmful. This empirical evidence indicates that opening Arab countries to both trade and capital account will not necessarily promote financial sector development.

Some Arab countries are not included in the study sample because of the lack of data.

The main implication of this study is: opening Arab countries for trade and capital account at the same time will not improve the development of financial sector.

The paper examines one of the most important issues in developing countries; where, the people want to know if the country openness to trade and finance will generate a social and economic welfare for them.

This study can be considered as one of the rare studies that examine the simultaneous openness issue in the developing countries. It recommends regulators and policy makers to take gradual steps toward adopting trade and financial openness in the Arab countries.

The purpose of this paper is to explore the various perceptions of stakeholders on corporate social responsibility (CSR) of Islamic Banks in Jordan.

The data are collected from multiple stakeholder groups of two Islamic Banks in particular: Jordan Islamic Bank for Finance and Investment and Islamic International Arab Bank. The methods adopted to examine the data are the descriptive analysis and analysis of variance. With regard to the purpose of this research, the concept of Islamic CSR and its dimensions have been considered as: rooted in the Islamic ethical system, represented through the profit and loss arrangements, embedded within the principles behind financial services provided by Islamic Banks, and benchmarked by the Accounting and Auditing Organization of Islamic Financial Institutions’ (AAOIFI) corporate governance standard.

The results indicate that stakeholders have expressed a positive attitude toward the concept of CSR. Proving that the issue of CSR is an important factor in Islamic banking and to the perception of various stakeholders’ groups, the focus shifted into identifying the dimensions which shape the Islamic CSR. In reference to previous research results, the Islamic banking sector in Jordan has an in-built dimension that promotes social responsibility.

The study recommends that Islamic Banks improve CSR activities in order to better exploit this commitment with a cultural identity yet again. This identity has a direct influence on the branding of Islamic finance in local markets. The structure of offered products reflects regional beliefs and provides a suite of services. In terms of services, the services provided are geared toward specific market segments within local communities. This as a result directs a number of strategic decisions made by Islamic Banks, which are based on the structure of their offerings, brand identity and customer service levels.

In Jordan, studies about the perception of stakeholders on CSR from an Islamic perspective are almost non-existent. Thus, providing solutions for study questions and presenting empirical evidence regarding CSR issues will certainly add a new dimension to the literature. Moreover, the conclusions and recommendations may help regulators and decision makers in enhancing the competitiveness and the sustainability of the Islamic banking sector in Jordan.

The purpose of this paper is to provide additional empirical evidence about capital budgeting practices in an emerging economy.

The study utilizes a questionnaire and interview to collect data from respondents.

The results show that the JIC give almost equal importance to the discounted and undiscounted cash flow methods in evaluating capital investment projects. It appeared also that the most frequent used technique is the profitability index followed by the payback period.

Based on these results, the researchers recommend putting a great attention to apply the concepts and techniques of capital budgeting in an appropriate manner. The corporations should also consider importance of information technology and its applications in capital budgeting.

This is the first study applied on the capital budgeting practices and its related issues in the JIC.

This paper examines whether earnings and its components are relevant and sufficient to bridge the gap between banks' market and book values, and also considers if bank efficiency is “value relevant” for banks valuation.

This paper follows the value relevance literature methodology which tests for the difference between book and market values using a variety of indicators including net income and its components as well as bank efficiency (derived using DEA) and risk indicators. The regression models are estimated using OLS, random and fixed effects approaches for a sample of listed Jordanian banks between 1993 and 2004.

The main findings of this paper are twofold. First, it is found that earnings (and its components) are value relevant and explain the gap between market and book values. Secondly, cost efficiency, as an economic performance measure, provides incremental information, not contained directly in banks financial statements, to the market. Overall it is found that the components of net income are more important than aggregate net income in explaining bank value. Furthermore, bank operational efficiency adds incremental information in explaining the gap between market and book value. These results support the view that stock prices aggregate signals received by the market as well as from firm's accounting systems.

The study shows that bank efficiency indicators (along with more traditional accounting measures) help explain market values.

This is one of only a limited number of studies that link bank efficiency to market valuation. It is the first, we believe, to do this for banks operating in an emerging economy.

This study aims at investigating the effect of the qualified audit reports on shares prices and returns in Jordan.

A market‐based study conducted on the qualified audit reports of the shareholding companies in Jordan during the period 2000‐2005.

The conclusions of the study showed that there is no clear or significant effect of a qualified audit opinion on share prices and returns.

Based on the conclusions of the study, the researchers recommend there is a need for further educating users of the role of the audit report and the need for extending this study to investigate the effect of the qualified audit reports on share prices and returns during other periods and using different test periods other than the announcement date.

This study is original because it provides us with new evidence about the effect of qualified audit reports on shares prices and returns in a developing country.