What Impact do Both Structures of Finance and Costs have on Firm's Value? A Case Study of Industrial Manufacturing Companies in Jordan

Debt and cost structures are tools used by many firms to leverage their capital and profit. Empirically, the concern has received substantial consideration, however the evidence is varied. Against this background this study offers an empirical understanding into the impact of cost and financial structures have on firm?s value of manufacturing companies in Jordan for the period 2012-2016. Where it is customary, Return on assets(ROA)and return on equity (ROE)of a firm are considered the key factors of the growth rate of its earning. The study sample consist of 21 companies as well as data has been analyzed by descriptive statistics and regression model; the dependent variables comprised of Return on Assets (ROA) and return on equity (ROE) as measures of firms value and the independent variable was the cost ratio and liabilities ratio. The result of the study demonstrates that generally there is a significant impact of cost and financial leverage on firm?s value where has shown that there is a significant impact of the financial leverages on ROE and there is a significant impact of operating leverage on ROA.