European Journal of Accounting Auditing and Finance Research Vol.2, No.6, pp. 100-117, August 2014 journals.org) - www.ea UK ( Published by European Centre for Research Training and Development 100 THE IMPACT OF CORPORATE GOVERNANCE PRINCIPLES APPLICATION ON FINANCIAL PERFORMANCE OF PUBLIC SHAREHOLDING COMPANIES LISTED IN AMMAN STOCK EXCHANGE Dr. Nedal Al-Ramahi, Zarqa University, Jordan Dr. Abdullah Barakat, Shaqra University, Saudi Arabia Yousef Shahwan, Zarqa University, Jordan ABSTRACT: This study aimed to investigate the extent of corporate governance principles in the public shareholding companies listed on the First Market in Amman Stock Exchange .To achieve the objective of this study , the researchers distributed 55 questionnaires to first market companies in Amman Stock Exchange, The results showed that there is a strong application of corporate governance principles in the public shareholding companies listed in the First Market in the Amman Stock Exchange .Moreover there is a declination in staff awareness of public shareholding companies listed in the First Market in the Amman Stock Exchange , the importance of corporate governance and its principles .In addition, there is also a declination related to hide some information to shareholders , whether financial or non-financial , and a declination of disclosing strengths and weaknesses points , either in company’s financial system or its disclosures annual reports management in the, and a decrease in Board of Directors member occupation of any executive function ,either with or without salary . KEYWORDS: Governance, Financial Performance, Shareholding, Amman Stock Exchange INTRODUCTION Corporate governance is considered the general framework for supervisory procedures, and control on Board of Directors; in order to ensure procedures correctness related management control process, executive management, and correctness of measures to be taken, in its quest to achieve company objectives. This ensures maintaining shareholders rights through strengthening company's financial performance. One of the main reasons that led to major companies collapse is departments complicity , weak structure , weak control and follow-up units, and a lack of disclosure and transparency required to enhance the entity of the company, and maintain stakeholder rights with the company and the shareholders , which led to deficiencies in companies financial performance since financial performance is considered one of the most important measures of management efficiency, and indicating implement commitment of rules and standards used in companies. Problem statement Poor application of corporate governance, which is considered one of the most important pillars to enhance transparency , increase control and supervision on management and reduction fraud committed by some executives and companies Boards of Directors, which may cause damage to shareholders, investors , stakeholders, and company's reputation as well as . Based on the foregoing, the statement problem can be summarized in the following question :