scholarly journals The Influence of the Trade-off between Profitability and Future Increases in Sales on Cost Stickiness: Evidence from Jordan

2020 ◽  
Vol 14 (5) ◽  
pp. 19
Author(s):  
Mohammad Murdi Alenezi
Keyword(s):  
Stock Exchange ◽  
Industrial Firms ◽  
Industrial Companies ◽  
Study Results ◽  
Amman Stock Exchange ◽  
Cost Behavior ◽  
Cost Behaviour ◽  
Study Population ◽  
The Cost ◽  
Cost Stickiness

This study aims at analyzing cost stickiness under the dilemma between current profitability and future sales increase. The study population consisted of all Jordanian industrial companies listed on the Amman Stock Exchange (ASE) during the period (2007-2017). The study sample consisted of (30) industrial companies, were used in the analysis. Panel data regression was used to test the relationship between the variables in the study. Results supported the Anderson et al. (2003) argument in that selling, general and administrative expense for Jordanian industrial firms listed in Amman stock exchange (ASE) follow the sticky cost behaviour, they increased by (0.34%) for 1% increase in sales, however, they didn’t change by any sales decrease. During sales decline results showed that future sales growth did not have a stressing effect on cost stickiness and didn’t drive greater cost stickiness, however, changes in profitability was proved to have a significant positive relation to cost stickiness when sales decrease, meaning that managers apply greater adjustments in SGA (greater cost stickiness) in the case of the attainment of unfavourable changes in profitability. The study recommended a number of recommendations, including Companies should know the factors that affect the cost behavior and take into consideration when analyzing costs and making administrative decisions in companies which will, in turn, improve the process of making administrative decisions and investment decisions.

scholarly journals The Impact of CEOs' Compensations on Cost Stickiness in Industrial Companies Listed on the Amman Stock Exchange

2021 ◽  
Vol 15 (1) ◽  
pp. 152
Author(s):  
Lina Fuad Hussien
Keyword(s):  
Stock Exchange ◽  
Industrial Companies ◽  
Level Of Activity ◽  
Cost Behavior ◽  
Study Population ◽  
The Difference ◽  
High Level ◽  
The Cost ◽  
The Impact ◽  
Cost Stickiness

The purpose of this study is to analyze the asymmetry in cost behavior (cost stickiness) and to identify the impact of CEOs' compensation on the degree of cost stickiness behavior. The study population consists of the public shareholding companies listed on the ASE, which number (56) industrial company. Data were collected from (35) industrial companies for the period (2009 - 2019). To measure the degree of costs stickiness, The Model of Weiss (2010) was used. The Model of Weiss (2010) takes into account the costs and changes in the level of activity (sales) for the last four quarters of the company, Weiss (2010) model constructs the difference in logarithmic ratios of changes in cost. The study found that the CEO's compensation in Jordanian industrial companies consists of two forms. The companies pay fixed salaries or performance-related bonuses. The study found that the form of compensation that is paid to the CEO affects the behavior of managers. The results indicated that the performance-related rewards are accompanied by a decrease in the level of cost stickiness, and the compensation paid in the form of fixed salaries are accompanied by a high level of cost stickiness. The study recommends that companies should understand the role of the compensation form in administrative decisions, especially with regard to resource modifications, as management motives in relation to resource modifications must be taken into account because of their clear and direct impact on the cost structure of companies.

scholarly journals Perilaku Sticky Cost Biaya Penjualan, Biaya Administrasi dan Umum Serta Harga Pokok Penjualan Pada Perusahaan Manufaktur

2016 ◽  
Vol 18 (2) ◽  
pp. 65
Author(s):  
Lea Ratnawati ◽  
Yeterina Widi Nugrahanti
Keyword(s):  
Stock Exchange ◽  
Manufacturing Companies ◽  
Administrative Cost ◽  
Cost Increase ◽  
Cost Behavior ◽  
Cost Behaviour ◽  
The Cost ◽  
Cost Stickiness ◽  
Percent Decrease ◽  
Sales Increase

<em>The objective of this study is to find the indication of sticky cost behavior in Indonesian manufacturing. The cost stickiness can be indicated by asymetric reaction of costs to changes. This study employs Anderson, Banker, Janakiraman (ABJ) model to identify the sticky cost behaviour on selling expense and general administrative expense. The samples of this study are 351 firm years of manufacturing companies listed in Indonesia Stock Exchange during 2009-2012. This study found that selling, general and administrative cost increase 0,475 percent and cost of good sold increase 1,063 percent when sales increase 1 percent. Whereas, the sales and selling, general and administrative cost decrease 0,409 percent and cost of good sold decrease 0,033 percent per1 percent decrease in sales. The research results provide of sticky cost behaviour indication in selling expense, general and administrative, and cost of good sold in Indonesian manufacturing company. The findings support the theory of cost adjustment delay.</em>

scholarly journals The Impact of Earnings Management on Stock Returns for Listed Industrial Firms on the Amman Stock Exchange

2019 ◽  
Vol 9 (3) ◽  
pp. 1
Author(s):  
Ahmed M. Al Omush ◽  
Walid M Masadeh ◽  
Rasha M. Zahran
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Management Practices ◽  
Stock Exchange ◽  
Financial Statements ◽  
Industrial Firms ◽  
Significance Level ◽  
Amman Stock Exchange ◽  
Study Population ◽  
Operating Cash Flow

This study aims to investigate the impacts of earning management on the stock returns of listed industrial firms on the Amman Stock Exchange, with the observance of (firm size and operating cash flow) as control variables for the study. In order to fulfill the purposes of this study, the researcher utilized (Jones model) and (Modified Jones model) to measure earning management through reliance on discretionary accruals as evidence of earnings management practices, and utilize (Market Return On the Stock model) to measure stock returns, and the study population was Mining and Extraction Industries firms also Food and Beverages firms listed in Amman Stock Exchange, the study was conducted on a sample of 18 firms which represents 75% of the study population for the period from 2014 to 2018, In addition to using descriptive and analytical approach to data collection, analysis, and testing hypotheses through financial statements of the firms in the study, the researcher has used the Statistical Package for Social Sciences (SPSS) program to test the hypotheses. This study creates many results some of which are: there is an insignificant relationship between earnings management practices and stock returns for listed industrial firms in Amman Stock Exchange during the study period at the significance level of 5%, Which reflects the poor efficiency in Amman Stock Exchange and not the information contained in the financial statements issued and therefore not impact stock prices, which in turn affects the stock returns, and there is an insignificant relationship between stock returns and operating cash flow at the level of significance of 5%, In addition found significant correlation between firm size and stock returns at the significance level of 1%. The researcher presented a set of recommendations; the following are most valuable: the importance of increasing the awareness of the relevant parties about the unreliability of financial statements issued by industrial companies listed on the Amman Stock Exchange in existence of the earnings management practice and not reflecting the information contained in the financial statements on prices and stock returns by holding seminars, conferences and meetings also Activating the role of audit committees further to be able to detect the practice of earnings management and decrease it.

scholarly journals The Impact of Intellectual Capital Efficiency in Business Reengineering: An Empirical Study on the Industrial Companies Listed on the ASE

2019 ◽  
Vol 14 (2) ◽  
pp. 187
Author(s):  
Omar Fareed Shaqqour
Keyword(s):  
Intellectual Capital ◽  
Stock Exchange ◽  
Value Added ◽  
Intellectual Ability ◽  
Industrial Firms ◽  
Engineering Approach ◽  
Industrial Companies ◽  
Study Results ◽  
Capital Efficiency ◽  
The Impact

The redesign of administrative strategic processes and polices from the root to realize the value added in the organization is called re-engineering approach, where the employees who have the knowledge, intellectual ability and skills that give them the ability to innovate and achieve the objectives of the organization, is called intellectual capital efficiency.&nbsp;&nbsp;&nbsp;&nbsp; Knowing the importance of an intellectual capital efficiency of the company and its contribution to provide the requirements of applying re-engineering in the company and its ability to motivate the company to implement this approach, Is important and vital. This study aims to identify the impact of intellectual capital efficiency in re-engineering on industrial firms listed on the Amman Stock Exchange ASE. To achieve this goal, the researcher measured the intellectual capital efficiency by Pulic model, and the business re-engineering through a questionnaire to measure three themes related to re-engineering, the business, extent of support the company&#39;s management to apply the business re-engineering approach, the availability of the requirements of re-engineering, and the extent of applying the reengineering approach. The study sample consisted from 50 industrial companies listed on the ASE, during the study period (2014- 2017), the study used SPSS and Excel to identify the descriptive characteristics of the variables of the study, and analysis the data, and it was also used regression analysis to test the hypotheses of the study. Study results concluded that intellectual capital efficiency positively impact in supporting the company&#39;s management to apply the business re-engineering approach in the industrial companies listed on ASE, and the results also showed that the intellectual capital efficiency positively impact in the providing of the business re-engineering requirements in these companies, finally, the study finds that intellectual capital efficiency positively impact in the applying the business reengineering approach in these companies. The study recommended to increase the interest for intellectual capital and business reengineering, and the study also recommended to increase awareness among workers in the accounting departments of the importance of the subject of intellectual capital efficiency and business reengineering.

scholarly journals Social Responsibility and Its Impact on Financial Performance in Companies Listed on the Amman Stock Exchange

2019 ◽  
Vol 14 (3) ◽  
pp. 174
Author(s):  
Abed Alwahab AL-Rawashdeh ◽  
Faten Ameen Al Nuaimi
Keyword(s):  
Social Responsibility ◽  
Financial Performance ◽  
Stock Exchange ◽  
Statistical Significance ◽  
Multiple Linear Regressions ◽  
Industrial Companies ◽  
Study Results ◽  
Amman Stock Exchange ◽  
Linear Regressions

The main purpose of this study was to clarify the expenditure of Jordanian Industrial Companies on social responsibility and its impact on financial performance, and the researchers used multiple linear regressions to test the hypothesis of the study. Results showed that social responsibility has a statistical significance on the financial performance of the Jordanian industrial companies. The study recommended, more efforts to increase the interest of Jordanian industrial companies&rsquo; social responsibility towards the environment, in general and in particular, to increase investment of Jordanian Industrial Companies, using their resources in education, health, and infrastructure to achieve their share of responsibility towards the society.

scholarly journals The Impact of Motivation on Dynamic Capabilities in Jordanian Commercial Banks

2020 ◽  
Vol 14 (1) ◽  
pp. 130
Author(s):  
Ayman Suliman Jarrar
Keyword(s):  
Human Resources ◽  
Sample Size ◽  
Commercial Banks ◽  
Dynamic Capabilities ◽  
Stock Exchange ◽  
Data Access ◽  
Study Results ◽  
Amman Stock Exchange ◽  
Study Population ◽  
The Impact

This paper aims to identify the impact of motivation on dynamic capabilities. The study population consists of all workers in the 13 Jordanian commercial banks, listed in Amman Stock Exchange which is estimated by 20,000 workers.&nbsp; The sample size is 384 sample entails in Jordanian commercial banks. the study results indicate that there is a significant impact of the motivation dimensions on the managerial dynamic capabilities. This study has some limitations which includes data access limitations and access limitations. The study recommends extending its scope and review the human resources polices to review the motivation system in the Jordanian banks.

scholarly journals Does Auditing Committee Characteristics Enhance Corporate Value? Evidence From Jordan

2020 ◽  
Vol 11 (2) ◽  
pp. 348
Author(s):  
Ashraf Bataineh ◽  
Mustafa M Soumadi
Keyword(s):  
Positive Relationship ◽  
Stock Exchange ◽  
Corporate Value ◽  
Return On Assets ◽  
Pooled Data ◽  
Industrial Companies ◽  
Data Regression ◽  
Study Results ◽  
Financial Expertise ◽  
Amman Stock Exchange

The study aims to investigate the effect of auditing committee characteristics, represented in the auditing committee characteristics (size, independence, activity, financial expertise) on the enhancement of corporate value, for a sample of 47 Jordanian industrial companies listed at Amman Stock Exchange (ASE) during the period of (2014-2018). To achieve this goal, corporate value was measured using the return on assets (ROA) in addition to using the Pooled Data Regression. Study found a positive relationship between the auditing committee characteristics (size, activities, independence) and corporate value in the Jordanian industrial Companies, but didn't find a positive relationship between the financial expertise variable of auditing committee and the corporate value. Based on the study results, researchers made a number of recommendations that include: researchers and academic staffs must study in the future researches some of the other variables, such as the diversity of management committee, disclosure, transparency, and auditing fees in order to enhance corporate value. 

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 Macroeconomic uncertainty and cost stickiness

2020 ◽  
Vol 214 ◽  
pp. 01031
Author(s):  
Ziyang Li ◽  
Xi Cheng ◽  
Mengwei Zhang ◽  
Xian Wen
Keyword(s):  
Cost Management ◽  
Adjustment Cost ◽  
Economic Determinants ◽  
Listed Firms ◽  
Macroeconomic Uncertainty ◽  
Cost Asymmetry ◽  
Cost Behavior ◽  
Core Issue ◽  
The Cost ◽  
Cost Stickiness

Cost management is the core issue related to the development of enterprises, and studying enterprise cost behavior will contribute to optimizing enterprise decisions. However, an enterprise is not an independent organization. Instead, it exists and is affected by the macroeconomic environment. So it is conducive for company to apply macroenvironment information to cost management behaviors. This paper studies the cost stickiness based on the perspective of macroeconomic uncertainty, and takes “adjustment cost” and “agency problems” as the internal logic to integrate into the existing interpretation framework of cost stickiness. We analyze SG&A costs for Chinese listed firms over the period 2013 – 2019 after controlling for known economic determinants. The results show a positive relation between the macroeconomic uncertainty and the degree of cost asymmetry. In particular, the macroeconomic uncertainty makes the cost stickiness of human resource cost weaken.

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.

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