Board characteristics, ownership structure, and financial sustainability: evidence from Palestine and Jordan

Abstract This study explores the relationship between board characteristics, ownership structure, and financial sustainability. The research methodology employs panel data analysis using secondary data. Data collected from annual reports to 113 companies listed on Palestine and Amman Exchanges distributed over three sectors: services, industry and investment. Descriptive and inferential statistics were used; correlation matrix was used to evaluate linear relationships between variables. To test multicollinearity, the VIF was used, and the regression was conducted using the Pooled Ordinary Least Squares (OLS) regression method. There is a significant positive relationship between (gender diversity, board independence, academic background, and foreign ownership) and financial sustainability on the long run, but no significant relationship between (CEO duality, board independence, ownership structure and foreign ownership on and financial sustainability the short run. This study highlights the impact of effective governance and balanced ownership structure on companies' financial sustainability. The study suggests that companies must adhere to governance principles to ensure their financial sustainability. The findings suggest practical pathways for enhancing the ultimate provision of decision-makers with valuable information. It creates governance structures that support sustainable practices. This study closes a gap in the literature and provides insightful recommendations for corporate managers, auditors, and regulators in Jordan and Palestine and other emerging economies.