scholarly journals The ability of cash flows to predict the earning: Evidence from Jordan

2021 ◽  
Vol 18 (4) ◽  
pp. 36-44
Author(s):  
Mohammad Fawzi Shubita
Keyword(s):  
Stock Exchange ◽  
Predictive Ability ◽  
Cash Flows ◽  
Operating Cycle ◽  
Prediction Ability ◽  
Future Earnings ◽  
Industrial Companies ◽  
Amman Stock Exchange ◽  
Great Support ◽  
The Relationship

This study aims to investigate the ability of cash flows components to predict the earning and to know the extent of the relationship between accounting profits and cash flow measures. The study sample consisted of 77 industrial companies listed on the Amman Stock Exchange in Jordan for the period from 2006 to 2019. This study relied on the regression method to test the relationship between the study variables. The study findings showed that the cash flows from operating, investing, and financial activities have a statistically significant impact on predicting future earnings. The study also examined the effect of length of operating cycle and company’s size on the predictive ability of cash flows regarding future earnings. The main results for this aspect are that large companies and short operating cycle companies have higher prediction ability for future earnings than small and long operating cycle companies. This paper provides evidence of the information content of cash flows for future earnings in emerging markets like Jordan and is important for Jordanian shareholders by enabling them to evaluate company’s performance. AcknowledgmentsI would like to thank Amman Arab University for its great support, and for funding this study.

scholarly journals The Relationship Between Cash Flow and Profitability of Insurance Companies listed in Amman Stock Exchange in Jordan

2019 ◽  
pp. 51-60
Keyword(s):  
Stock Exchange ◽  
Cash Flows ◽  
Regression Method ◽  
Annual Reports ◽  
Insurance Companies ◽  
Earnings Per Share ◽  
Amman Stock Exchange ◽  
Main Factors ◽  
The Relationship ◽  
Operating Activities

The aim of the paper is to investigate the relationship between the main factors of Cash Flows (Operating activities, investing activities, and Financing activities) and the profitability measured by Earnings per Share (EPS). The sample included five insurance companies listed in Amman stock exchange (ASE) during the period (2011-2015). To achieve the goal of the paper, and to analyze the data extracted from the annual reports, the paper used simple and multiple liner regression method. The results of the paper revealed that there is a significant impact of element of Cash Flows (Operating activities, investing activities, and Financing activities) on Profitability measured by (EPS).

scholarly journals Net Working Capital and the Profitability: Empirical Evidence form Amman Stock Exchange

2019 ◽  
Vol 12 (4) ◽  
pp. 12
Author(s):  
Zaher Abdel Fattah Al-Slehat ◽  
Bader Mustafa Al-Sharif
Keyword(s):  
Empirical Evidence ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Working Capital ◽  
Operating Income ◽  
Industrial Companies ◽  
Amman Stock Exchange ◽  
Investment Opportunities ◽  
The Relationship ◽  
Descriptive Method

The current study investigates empirically the relationship between the net working capital and the profitability of the industrial companies for the period of 9 years from 2009-2017. To fulfill this aim, the researcher used the analytical descriptive method on a sample consisted of 26 industrial companies listed in Amman Stock Exchange (ASE). The empirical result shows that net operating income and return on asset have positive relationship with net working capital. However, there is no relationship between net working capital and profit margin. The study recommends that to more attention for investing the net working capital by determining investment opportunities that reflect positively on profitability. Additionally, managers should raise the awareness of their employees regarding the importance of internal and external investment to increase the market share.

Predictive view of the value relevance of earnings in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hajam Abid Bashir ◽  
Manish Bansal ◽  
Dilip Kumar
Keyword(s):  
Capital Investment ◽  
Stock Return ◽  
Value Relevance ◽  
Stock Exchange ◽  
Predictive Ability ◽  
Cash Flows ◽  
Data Set ◽  
Content Type ◽  
Uniform Sample ◽  
Reported Earnings

Purpose This study aims to examine the value relevance of earnings in terms of predicting the value variables such as cash flow, capital investment (CI), dividend and stock return under the Indian institutional settings. Design/methodology/approach The study used panel Granger causality tests to examine causality relationships among variables and panel data regression models to check the statistical associations between earnings and value variables. Findings Based on a data set of 7,280 Bombay Stock Exchange-listed firm-years spanning over ten years from March 2009 to March 2018, the results show higher sensitivity of earnings toward cash flows, CI, divided and stock return and vice-versa. Further, the findings deduced from the empirical results demonstrate that earnings are positively related to value variables. Overall, the results established that earnings are value-relevant and have predictive ability to forecast the value variables that facilitate investors in portfolio valuation. The results are consistent with the predictive view of the value relevance of earnings. Several robustness checks confirm these results. Originality/value This study brings new empirical evidence from a distinct capital market, India, and provides a new facet to the value relevance debate in terms of its prediction view. The study is among earlier attempts that jointly measure the ability of earnings in forecasting different value variables by taking a uniform sample of firms at the same period. Hence, the study provides a comprehensive view of the predictive ability of reported earnings.

Do Financially Constrained Firms Earn Higher Returns than the Unconstrained Firms? A Comprehensive Evidence from Pakistan Stock Exchange

2020 ◽  
Keyword(s):  
Time Series ◽  
Asset Pricing ◽  
Capital Structure ◽  
Stock Returns ◽  
Financial Constraints ◽  
Stock Exchange ◽  
Cash Flows ◽  
Total Asset ◽  
Cash Holding ◽  
The Relationship

This paper examines the relationship between financial constraints and the stock returns explaining the pricing of stock through financially constrained and unconstrained firms in Pakistan. Three proxies; total assets, tangible to total assets and cash holding to total assets ratios) have been used for financial constraints and the study tried to investigate that either the investors are compensated for taking the extra risk or not in Pakistan Stock Exchange (PSX). We find that the financially constrained firms don’t earn higher returns when their capital structure is heavy with liquid assets and their cash flows are more than the unconstrained firms in PSX. Moreover, the time series results showed that the risk-adjusted returns of the most constrained firms give the mix and somewhat negative and significant and insignificant results for the Pakistani firms listed in PSX sorted based on tangible to total assets and Cash holding to total asset ratios. Keywords: Asset Pricing, Financial constraints, risk-adjusted performance of portfolios

scholarly journals Kemampuan Laba dan Arus Kas Operasi dalam Memprediksi Laba dan Arus Kas Masa Depan

2018 ◽  
pp. 80
Author(s):  
Frans AP Dromexs Lumbantoruan ◽  
I Gusti Ngurah Agung Suaryana
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Flow Property ◽  
Multiple Linear Regression Analysis ◽  
Cash Flows ◽  
Future Earnings ◽  
Analysis Technique ◽  
Operating Cash Flow ◽  
Future Cash Flows

This study aims to determine the ability of earnings and operating cash flows in predicting earnings and future cash flows. This research was conducted on property and real estate companies listed on the Indonesia Stock Exchange. The samples used by 20 companies with 40 observations. The sampling was done by nonprobability samplingmethod with purposive samplingtechnique. The analysis technique used is multiple linear regression analysis. Based on the result of the analysis, earnings influences in predicting future earnings. Likewise, earnings and operating cash flow have an effect in predicting future cash flows. However, operating cash flow is not influential in predicting future earnings. Keywords: profitability, cash flow, property

scholarly journals The Impact of Cognitive Integration between the Traditional Balanced Scorecard and the Information Technology Balanced Scorecard on the Entrepreneurship Value of the Jordanian Public Shareholding Industrial Companies

2017 ◽  
Vol 13 (1) ◽  
pp. 153
Author(s):  
Usama Abdul Moneim ◽  
Ala Jaber Matarneh ◽  
Samer Akour
Keyword(s):  
Balanced Scorecard ◽  
Stock Exchange ◽  
Integrated System ◽  
Cognitive Integration ◽  
The Balanced Scorecard ◽  
Institutional Leadership ◽  
Industrial Companies ◽  
Amman Stock Exchange ◽  
The Impact

Due to the increased competition between the various industrial companies at the local and international levels, there became a need to adopt modern and effective methods and tools that enable such companies to acquire and maintain competitive advantages that help them choose, apply and assess the strategies adopted. One of the most important tools is the Balanced scorecard according to the leadership concept and the decisions of the COBIT committee; this tool had a great concern and attention by researchers or businessmen; applying it led to a remarkable success in some companies, which made it move from a mere tool of management to an integrated system of strategic management. The method of measuring the balanced scorecard according to the COBIT committee helps the industrial companies’ measure their strategic performance wisely and even goes further in helping formulate the companies' industrial strategies in a pioneer method, translate them into strategic goals, translate these objectives into strategic measurements achieving a follow-up and finally assess the industrial strategy locally and globally. Accordingly, the study aimed at shedding light on the impact of the cognitive integration among the dimensions of the traditional balanced scorecard and the IT balanced scorecard on the Entrepreneurship value in the industrial companies. The study community consisted of all the public shareholding industrial companies listed on Amman Stock Exchange by the end of (2015) amounting to (63) (Annual Report of Amman Stock Exchange, 2016). (56) Companies were randomly selected to form the study sample. One of the most important results of the study is that the effectiveness of measuring the quality of applying the traditional Balanced Scorecard and the IT Balanced Scorecard will create the Entrepreneurship value of the industrial companies, thus contributing to achieving the company's strategic objectives. The study recommended the need that the industrial companies follow up the local and international issues linked with the IT related to applying the balanced scorecard to reach for the institutional leadership with the need that such companies encourage innovation processes, accepting new ideas and motivating employees to provide innovative ideas.

scholarly journals The Relationship Between Corporate Governance Practices and Financial Performance: Evidence from Amman Stock Exchange

2021 ◽  
pp. 63-87
Author(s):  
Hussein Ahmad Bataineh ◽  
Sulaiman Salim Al Harthy ◽  
Raqiya Ali Al Balushi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Predictor Variable ◽  
P Value ◽  
Amman Stock Exchange ◽  
Governance Practices ◽  
Unit Increase ◽  
Beta Coefficient ◽  
The Relationship

The objective of the study was to establish the relationship between corporate governance Index and financial performance and evidence from Amman stock exchange. To achieve this objective, this study applied descriptive research structure. In this case, the research focused on the 181 firms listed at the Amman Stock Exchange (Appendix I). The statistical techniques that was applied to analyze collected data included descriptive statistics. The information analyzed revealed that the model summary indicated that the R² to be 0.243. This meant that 24.3% of the variation in performance (ROA) was due to the predictor variable captured in the study. This also implied that 75.7% of the variation in ROA was attributed to the measurements of error and other factors that could have had an effect on the ROA but were not captured in the study. The estimated model showed that ROA when other factors are held constant was 1.610. The outcomes also revealed that governance score had a beta coefficient of 0.573 indicating that for every unit increase in governance score on the ROA went up by 0.573. This relationship is significance since P-value of 0.025<0.05. Therefore, the model qualified as a good predictor. Keywords: Corporate Governance, Financial Performance, Amman stock Exchange.

scholarly journals PENGARUH ARUS KAS KEGIATAN OPERASI, SIKLUS OPERASI, UKURAN PERUSAHAAN DAN TINGKAT HUTANG TERHADAP PERSISTENSI LABA (STUDI EMPIRIS PADA PERUSAHAAN JASA SUB SEKTOR KONSTRUKSI DAN BANGUNAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2016)

2019 ◽  
Vol 3 (1) ◽  
pp. 45-54
Author(s):  
Varadika Sarah ◽  
Ahmad Jibrail ◽  
Sudrajat Martadinata
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cash Flows ◽  
Earnings Persistence ◽  
Building Sector ◽  
Operating Cycle ◽  
Operating Cash Flows ◽  
Operating Cash Flow

Earnings Persistence is earning can reflect the earnimg priod next. In fact there are still companies that do not guarantee a persistent of earning. This study wished to examine ehe effect of operating cash flows, operating cycle, firm size, and the lever of debt both individually and simultaneously to earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016. The sampling technique using purposive sampling so than 9 sample companies were obtained. Data were analized using panel data with multiple regression then tested with the help of STATA 11 softwere.The result of this study are: operating cash flow, operating cycle, firm size there is not significant effect on earning persistence. While the level of debt has significant effect on earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016

Sign in / Sign up

Export Citation Format

Share Document