Financial slack resources and firms' performance : case of industrial firms listed on Amman stock exchange over the period 1994-2004
Other Title(s)
فائض الموارد المالية و الأداء المالي : حالة الشركات الصناعية المدرجة في بورصة عمان خلال الفترة 1994-2004
Dissertant
Thesis advisor
al-Fayyumi, Nidal Ahmad
Gharayibah, Hisham S.
Comitee Members
Hamdun, Talal
al-Assaf, Tahir
al-Araj, Adnan
University
Arab Academy for Financial and Banking Sciences
Faculty
The Faculty of Banking and Financial Sciences
Department
Department of Financial Management
University Country
Jordan
Degree
Ph.D.
Degree Date
2006
English Abstract
Although financial slack's definition is well established, its relation with financial performance remains elusive and nebulous, some researchers suggested a positive, negative relation with performance.
On the other hand others had found merit in both perspectives arguing that financial slack improves performance within, but hurts it beyond a given range.
This research joins the debate by extending an empirical work to examine the relationship between financial slack measures (available, recoverable, and potential) and performance of industrial firms listed on Amman Stock Exchange measured in terms of both return on assets and stock price.
In addition it had appraised the nature of the nonlinear behavior of financial slack measures and industrial firm's performance.
The research sample represents approximately 41 % of industrial firms listed on Amman Stock Exchange resulting in a database of 27 firms over the period from 1994 to 2004.
Three cross-sectional time series models (ordinary least squared model, fixed effect model, and random effect model) were employed to examine the data.
Results provided evidence of a positive, negative relationship among all three financial slack type measures and financial performance measured in terms of both return on assets and stock price.
Also the Jordanian industrial firm's performance proved to have a stronger relationship with available and recoverable financial slack more than its relation with potential financial slack.
The analysis also had provided a strong support for a nonlinear relationship between financial slack measures (available, recoverable, and potential) and firm's performance measured in terms of both return on assets and stock price.
Moreover results had indicated a U-shaped and an inverse U-shaped relationship between financial slack measures and performance.
Overall, results highlight the importance of additional research on the financial slack-performance relationship.
Main Subjects
Financial and Accounting Sciences
Topics
No. of Pages
149
Table of Contents
Table of contents.
Abstract.
Introduction.
Chapter One : theoretical framework.
Chapter Two : research design & methodology.
Chapter Three : empirical analysis and results.
Conclusions and recommendations.
References.
American Psychological Association (APA)
al-Maharimah, Raid Mahmud. (2006). Financial slack resources and firms' performance : case of industrial firms listed on Amman stock exchange over the period 1994-2004. (Doctoral dissertations Theses and Dissertations Master). Arab Academy for Financial and Banking Sciences, Jordan
https://search.emarefa.net/detail/BIM-306811
Modern Language Association (MLA)
al-Maharimah, Raid Mahmud. Financial slack resources and firms' performance : case of industrial firms listed on Amman stock exchange over the period 1994-2004. (Doctoral dissertations Theses and Dissertations Master). Arab Academy for Financial and Banking Sciences. (2006).
https://search.emarefa.net/detail/BIM-306811
American Medical Association (AMA)
al-Maharimah, Raid Mahmud. (2006). Financial slack resources and firms' performance : case of industrial firms listed on Amman stock exchange over the period 1994-2004. (Doctoral dissertations Theses and Dissertations Master). Arab Academy for Financial and Banking Sciences, Jordan
https://search.emarefa.net/detail/BIM-306811
Language
English
Data Type
Arab Theses
Record ID
BIM-306811
