Relative Contribution of Organizational Factors to the Discriminant Functions Associated with Corporate Performance

Abstract

This research presents an empirical investigation of the relative contribution of four dimensions of corporate performance to the discriminant function associated with sample of high-performing companies and another sample of low-performing companies in the service sector in Jordan. Multiple Discriminant Analysis was used to calculate the discriminant functions. Results indicated that, profitability dimension variables dominated the discriminant functions associated with both groups, followed by variables related to the quality of debt management and survivability. Finally, results indicated that, management of the stock market failed to contribute in any significant way to the discriminant functions of either group.