The Impact of Asset Management Efficiency on the Financial Leverage and Return on Investment in Small Production Enterprises in View of the Covid-19 Pandemic. Case Study: The Jordanian Ministry of Social Development - Zarqa Governorate

ABSTRACT

The study aimed to determine the impact of the asset management efficiency of small production enterprises on financial leverage and the return on investment in view of the Covid-19 pandemic. The Jordanian Ministry of Social Development - Zarqa Governorate was selected as a case study. The descriptive-analytical approach was used to achieve the study objectives. The data related to the study variables were collected from the statements of Social Development Directorates in Zarqa Governorate, as these directorates are the case study of the study population represented by 40 directorates of the Ministry of Social Development in Jordan. The study concluded that there is a statistically significant negative impact of the asset management efficiency on the financial leverage in small production enterprises in the Ministry of Social Development - Zarqa Governorate. Also, there is a statistically significant positive impact of the asset management efficiency on the return on investment in small production enterprises in the Ministry of Social Development in Zarqa Governorate. The study recommended providing training courses for these enterprises’ ownership to empower them to face economic crises, especially in view of global economic crises such as the Covid-19 pandemic and increase the ability to reduce financial leverage and raise the return on investment for these enterprises. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.