scholarly journals The Relative Importance of Financial Ratios in Making Investment and Credit Decisions in Jordan

2021 ◽  
Vol 12 (2) ◽  
pp. 284
Author(s):  
Mohammad Ahmad Alqam ◽  
Haitham Yousef Ali ◽  
Yaser Mohd Hamshari
Keyword(s):  
Scientific Literature ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Study Data ◽  
Decision Makers ◽  
Financial Ratios ◽  
Relative Importance ◽  
Amman Stock Exchange ◽  
Second Category ◽  
Industry Area

This study has aimed to demonstrate the relative importance of financial analysis using ratios for each of lenders and investors in Jordan when making decision.Also; this study, included the financial ratios that could be adopted by decision makers in the industry (area) of lending or investment. The study included two categories; first is the category of financial intermediaries; to express the category of investors in Amman stock exchange (ASE), while the second category included employees of credit departments -in Jordanian banks- for the category of lenders.The collection of study data was based on a review of the subject's scientific literature, previous studies and by preparing a questionnaire that was designed on the basis of the theoretical framework of the study and its hypotheses.The objectives of financial analysis are to judge the efficiency of management and to use the information available to make various administrative decisions. The study found that financial ratios are used by data users when making decisions related to investment and lending. The results of the study also revealed the interest of lenders in debt and liquidity ratios, while investors' attention is focused on profitability and market ratios.

scholarly journals Using the Financial Analysis Approach to Forecast Industrial Production: A Guide from Jordan

2021 ◽  
Vol 16 (5) ◽  
pp. 91
Author(s):  
H. Banikhalid ◽  
S. Al-oshaibat
Keyword(s):  
Growth Rate ◽  
Industrial Production ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Value Added ◽  
Industrial Sector ◽  
Added Value ◽  
Financial Ratios ◽  
Amman Stock Exchange ◽  
The Right

This study aims to derive the function that can be used to predict the growth rate in the added value of industrial production in Jordan, depending on the financial ratios of industrial companies listed on the Amman Stock Exchange. To achieve the objectives of the study, the descriptive and analytical approach and multiple regression analysis were used using the SPSS program. The study population was represented by the public joint-stock companies listed on the Amman Stock Exchange in the industrial sector from 1994 to 2018. Results show that the financial ratios influencing the growth rate in industrial production value added the most (Industry t + 1) are earnings per share (EPS), net profit margin (NPM), and return on equity (ROE). Moreover, the effect is non-linear expressed by a function that can be used to predict the industrial production in Jordan. The study recommends paying attention to the partial input to predict macroeconomic variables, especially with the development of systems for storing and processing big data, as this method provides appropriate and sufficient data to make accurate decisions and enhances the right track.

scholarly journals The Role of Financial Analysis in Assessing the Prices of Shares of Jordanian Industrial Joint Stock Companies Listed on the Amman Stock Exchange

2019 ◽  
Vol 11 (6) ◽  
pp. 120
Author(s):  
Bahaa Sobhi AbdeLatif Awwad ◽  
Ammar Zakaria Abdallh Salem
Keyword(s):  
Market Share ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Share Price ◽  
Financial Ratios ◽  
Working Capital ◽  
Financial Leverage ◽  
Amman Stock Exchange

This study aimed to highlight the role of financial ratios in evaluating the prices of shares of Jordanian industrial joint stock companies listed on the Amman Stock Exchange; it also aimed to show which of these ratios has a more influential impact on these prices. The researcher conducted a test study survey to analyze the published data of (73) Jordanian industrial joint stock companies. The study sample (n= 18) formed about (25%) of the total population of the companies listed on the Amman Stock Exchange during the period 2010-2017. The researcher used the multiple regression method to identify the correlations between the financial ratios and the market share prices of the Jordanian industrial joint-stock companies. The results of the study showed a statistically significant effect for the Ratio of Circulation (CR), the Quick Ratio (QR), the Profit Per Share (EPS), the Return on Equity (ROE), the Debt Ratio (DR), the Total Assets Turnover (TAT), the Price- to- Earnings Ratio (PER), and the Price- to- Book Value Ratio (PBVR) on the market share price of the Jordanian industrial joint stock companies. However, the study showed no statistically significant effect of the Degree of Financial Leverage (DOL) and the rate of Working Capital Turnover (WCT) on the prices of these companies. In light of the study findings, the researcher recommended that all investors in the Amman Stock Exchange must have the know-how of the financial analysis, and to benefit from the expertise and knowledge of specialists in the financial analysis in order to rationalize their investment decisions and eventually take the best, decisive investment decisions. Companies should also consider the importance of financial leverage ratios and working capital turnover that may be reflected on the value/prices of their shares.

scholarly journals Analyzing the cash conversion cycle relationship with the financial performance of chemical firms: Evidence from Amman Stock Exchange

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1339-1346
Author(s):  
Mohammed Ibrahim Sultan Obeidat ◽  
Tareq Mohammad Almomani ◽  
Mohammad Abdullah Almomani
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Percent Level ◽  
Study Data ◽  
Return On Equity ◽  
Cash Conversion Cycle ◽  
Earnings Per Share ◽  
Amman Stock Exchange ◽  
Mean And Variance ◽  
Single Regression

The main purpose of the study is to investigate whether the cash conversion cycle has an impact on the financial performance of listed chemical firms in Amman Stock Exchange. To achieve the objectives of the study, data covering the period 2010-2019 of 5 among a total of 6 listed chemical firms were collected and used in analysis and hypotheses testing. The excluded firm was eliminated because its information was incomplete along the study period. Return on equity and earnings per share were used as indicators for financial performance in a separate form. The study involved two hypotheses, and both hypotheses were tested under the 95 percent level of confidence. Descriptive statistics including the mean and variance, in addition to correlation, were used in data analysis. Using both of the multiple and single regression models, the study showed that the cash conversion cycle had a significant impact on the financial performance of firms. Moreover, both of the controls were found significantly affecting the financial performance.

The Role of the External Audit in Assessing Continuity of Companies under the Financial Crisis: An Applied Study in the Iraqi Banks Listed in the Iraq Stock Exchange for the Period 2016-2019

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Sallama Ibrahim Ali ◽  
Hakeem Hammood Flayyih
Keyword(s):  
Financial Crisis ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Early Stage ◽  
International Standards ◽  
Financial Ratios ◽  
External Audit ◽  
Energy Company ◽  
Wide Range

In the first decade of the third millennium, shareholding companies faced several crises, with four major crises affecting financial markets, beginning with the collapses of a group of large companies following the Enron Energy company and similar companies in various countries, followed by the financial crisis and the collapse of global oil prices, which quickly ended until the sta As a result, the purpose of this study is to shed light on the role of external audit in assessing bank continuity, as Iraqi banks are among the first institutions and companies to move toward the application of international standards as well as being committed to accounting principles and assumptions, and they face a wide range of risks, the most dangerous of which is financial instability. Furthermore, the Kida model has been adopted in assessing the stability of banks and their ability to meet their obligations and perform their duties through a set of financial ratios that distinguish successful banks from those whose ability is suspect and vulnerable to financial failure, as well as trying to identify the nature of their activities at an early stage. However, using financial ratios, Kida's model was applied to a sample of three Iraqi banks, and the research concluded that the external auditor should use financial analysis models to know and evaluate the banks' continuity in terms of anticipating financial collapse.

scholarly journals The Ability of Financial Ratios to Predict the Index of Banking Sector in Amman Stock Exchange: An empirical study

2021 ◽  
pp. 86-105
Author(s):  
Ahmad Abdallah Ahmed Alswalmeh ◽  
Mahmoud Hasan Salem Qaqish
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Market Value ◽  
Financial Ratios ◽  
Debt Ratio ◽  
Return On Equity ◽  
Book Value ◽  
Turnover Ratio ◽  
Amman Stock Exchange ◽  
Equity Ratio

The main objective of this study is to test the ability of the financial ratios (ownership ratio, liquidity ratio, debt ratio, stock turnover ratio, return on equity ratio, return on total assets ratio, and market value to book value ratio) to predict the index of the banking sector in Amman Stock Exchange (ASE) using yearly data during the period between 2000 and 2014. The study counts on fourteen banks listed on Amman Stock Exchange. Using the ordinary least square method (OLS), the seven selected variables against the index of the banking sector have been tested. The findings dictate the financial ratios can predict the index of the banking sector in Amman Stock Exchange and dictate a statistically significant positive relationship between the liquidity ratio, debt ratio, stock turnover ratio, return on total assets ratio, market value to book value ratio with the banking sector index in Amman Stock Exchange. In addition, the study showed a statistically significant negative relationship between, return on equity ratio and the banking sector index in Amman Stock Exchange. In contrast, there is no statistically significant relationship between the ownership ratio and the index of the banking sector in the Amman Stock Exchange.

scholarly journals The Impact of the Integration Between the Relevance and Reliability of Accounting Information in the Level of Accounting Disclosure in Jordanian Industrial Firms

2018 ◽  
Vol 10 (6) ◽  
pp. 97
Author(s):  
Omar Fareed Shaqqour
Keyword(s):  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Accounting Information ◽  
Decision Makers ◽  
Accounting Disclosure ◽  
Industrial Firms ◽  
Amman Stock Exchange ◽  
The Difference ◽  
The Impact

This study aimed to measure the effect of the integration between the relevancy and reliability of accounting information in improving the level of accounting disclosure in Jordanian industrial firms listed on the ASE, by measuring the effect of the integration between the relevancy and reliability of accounting information in raising the level of compulsory and voluntary disclosure, because the accounting disclosure is important for decision makers and beneficiaries to make there suitable decisions, this study try to determinate the effect of the integration between the relevancy and reliability of accounting information, which is characterized by good accounting information, in assess whether disclosure is important or unimportant, and to determinate the role of increasing the relevancy and the reliability of accounting information on improves the level of compulsory and voluntary accounting disclosure.The study sample was 50 firms selected randomly from industrial firms listed on the ASE, and the study used a regression analysis method to test hypotheses.The study concluded that there isn’t affect on the degree of availability of Integration between the relevancy and reliability and the level of compulsory accounting disclosure in industrial firms listed on the Amman Stock Exchange. Where as, the results of the study showed that there is an effect on the degree of availability of Integration between the relevancy and reliability and the level of voluntary accounting disclosure in industrial firms listed on the Amman Stock Exchange. Which means that the difference between the industrial firms in the level of voluntary accounting disclosure is due to the degree of availability of Integration between the relevancy and reliability of accounting information.

scholarly journals The Impact of Social Responsibility on the Market Value for Services Corporations, Service Type as a Marketing Variable

2021 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Ali Mustafa Magablih
Keyword(s):  
Social Responsibility ◽  
Stock Exchange ◽  
Market Value ◽  
Study Data ◽  
The Social ◽  
Amman Stock Exchange ◽  
Service Type ◽  
Descriptive Approach ◽  
The Impact ◽  
The Relationship

The study aims to know the impact of social responsibility as a cost and also to show the market value of the Jordanian services corporations listed on the Amman Stock Exchange. “Services type” was used as a variable for the relationship rate in this study. The descriptive approach was used and applied to the data of 37 companies during the period from 2012-2019. The researcher also used statistical methods such as the arithmetic mean and standard deviation to describe the study data, and the test of linear regression and correlation analysis, in order to test the study hypotheses. Among the most important results that have been reached, there is an impact of social responsibility as costs and the disclosure of the market value of services companies. The study also showed a modified effect of services type on the relationship between social responsibility disclosure and market value.Based on the preceding, the study recommended expanding the social responsibility disclosure, which helps the company build a strong name as a desirable institution, which enhances the image of the company and the name of the product in the services market and among customers.

scholarly journals FINANCIAL ANALYSIS AS A STRATEGIC TOOL: THE CASE OF SMES IN THE REPUBLIC OF KOSOVA

2018 ◽  
Vol 19 (0) ◽  
pp. 186-194 ◽  
Author(s):  
Albana Berisha Qehaja ◽  
Hysen Ismajli
Keyword(s):  
Strategic Management ◽  
Empirical Data ◽  
Scientific Literature ◽  
Financial Analysis ◽  
Decision Makers ◽  
Service Sectors ◽  
The Republic

This paper examines the use of financial analysis as a strategic tool in SMEs. Empirical data are collected from 303 SMEs in the Republic of Kosova, operating in production, trade and service sectors. The aim of this study is to assess the extent to which the business financial analysis is employed in the sampled enterprises and to determine whether there are differences in the usage of it, within small and medium-sized enterprises and sectors. The results show that Kosovan SMEs greatly use financial analysis as a strategic tool. Moreover, significant differences are found between small and medium-sized enterprises regarding its usage and no significant differences among production, trade and service sectors. This paper contributes to the existing scientific literature, especially in the strategic management field. Additionally, this paper will likely contribute to decision makers’ increased use of business financial analysis as a strategic tool in their enterprises.

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