The effect of the asset management efficiency on financial performance: evidence from Jordanian industrial firms

Abstract EN

The effectiveness of asset management practices among industries listed on the Amman stock Exchange (ASE) is examined in this study with regard to their effects on financial performance measured by return on assets throughout the 2015–2020 timeframe.

companies in the industrial sector make up the population of this study.

purposive sampling was the method that was employed to gather data for the study subjects from as many as 33 firms.

return on assets is the dependent variable in this study.

however, the independent variables are non-current asset turnover, total asset turnover and working capital turnover.

the test technique utilized to decide the effect of three independent variables on the return on assets is regression using panel data analysis, which is carried out using EViews (12).

however, based on the results of a contemporaneous investigation, the study's major results are that non-current asset turnover and total asset turnover have a significant positive effect on return on assets; it in turn has a positive effect on industrial firms' financial performance, and on the contrary, the study found that working capital turnover has a negative effect on return on assets; the study suggests applying the efficiency of asset management to include additional sectors in the Amman Stock Exchange, choosing other financial indicators such as solvency and liquidity ratios, and comparing the industrial sectors with the service and financial sectors.