Determinants of Financial Leasing in Jordan – Shamsi Bawaneh & Mohammad Al-Shiab

Determinants of Financial Leasing in Jordan – Shamsi Bawaneh & Mohammad Al-Shiab

Abstract:

This study examines the impact of different variables on the use of financial leasing, namely; tax and accounting issues, legislations, and marketing by adopting the OLS model for testing the study hypothesis. The study relies on collecting the data by using the questionnaire approach developed by the researchers. Overall, 150 questionnaires were distributed on randomly selected industrial companies listed on Amman Stock Exchange (ASE). The questionnaires returned back were 65%. Selected statistical tests were used to check whether the data meets the model assumptions, such as normality, autocorrolation, multicollinearity tests. In addition, Cronbach Alpha test was applied to check the suitability and credibility of the questionnaire.The study results show that all explanatory variables had positive influence on the dependent variable (i.e. the use of financial leasing). However, the only variable had significant influence was the tax and accounting variable, where other variables influences were not significant. Therefore, the researchers recommend to pay more attention on such variables, more specifically the tax and accounting privileges in using the financial leasing.

 Key words: Financial Leasing; Tax, Legislations