Abstract

This study aims at showing the extent to which the nature of the activity and the volume of investments in associates or subsidiaries affect the financing structure and the market value of public joint stock companies listed on the Palestine Exchange. The study was applied on a sample of (22) Palestinian corporation listed at Palestinian Security Exchange during the period 2008-2018. In order to achieve the study objectives, simple and multiple regression analysis were used to test the effect of independent variables on dependent variables in the presence of both quick liquidity ratio and dividends ratio as controlling variables for the relationship between independent and dependent variables. The results of the study showed that there is an effect of volume of investment in subsidiary or associate companies on the financial structure and market value of public joint stock companies listed on the Palestine Exchange. It also showed that there is an impact on the nature of the company’s work and the economic sector it belongs to, on the financial structure and market value of companies within the study sample.