The relationship between working capital management and profitability for industrial companies listed in Amman Stock Exchange
Other Title(s)
العلاقة بين إدارة رأس المال العامل و الربحية للشركات الصناعية المدرجة في بورصة عمان للأوراق المالية
Joint Authors
Sharaf, Raghad Fawzi
Haddad, Fayiz Salim
Source
Jordan Journal of Business Administration
Issue
Vol. 11, Issue 2 (30 Jun. 2015), pp.509-523, 15 p.
Publisher
University of Jordan Deanship of Academic Research (DAR)
Publication Date
2015-06-30
Country of Publication
Jordan
No. of Pages
15
Main Subjects
Financial and Accounting Sciences
Topics
Abstract AR
تهدف هذه الدراسة إلى قياس العلاقة بين إدارة رأس المال العامل و الربحية.
و قد تم فحص العلاقة بين إدارة رأس المال العامل و الربحية باستخدام بيانات تجميعية.
تكونت عينة الدراسة من 43 شركة صناعية مدرجة في بورصة عمان في الأردن، خلال الفترة (2000-2012).
أظهرت نتائج الدراسة وجود علاقة سلبية ذات دلالة إحصائية بين دورة تحويل النقدية و الربحية.
و هذا يدل على أن التقليل من دورة تحويل النقد تحسن ربحية الشركة.
و علاوة على ذلك، يمكن للمديرين تعظيم ثروة المساهمين من خلال تقصير فترة التحصيل و فترة التخزين.
و أظهرت النتائج وجود علاقة إيجابية بين معدل الدفعات المستحقة و العائد على حقوق الملكية كمقياس للربحية.
إضافة إلى ذلك، فإن الربحية تزيد مع حجم الشركة و نمو المبيعات و تنخفض مع المديونية.
Abstract EN
The aim of this study is to analyze the relationship between working capital management components and profitability.
The relationship between working capital management and profitability is examined using panel data analysis for a sample consists of 43 industrial companies listed in Amman Stock Exchange in Jordan, during the period (2000 - 2012).
The results of regression analysis show a significant negative relationship between cash conversion cycle and profitability.
This indicates shorting cash conversion cycle improve company profitability. Moreover, the managers can create value for their shareholders by shortening the number of collection payments period and inventories conversion period.
The result also showed that there is positive relationship between payables deferral period and return on equity as a measurement of profitability.
Furthermore, profitability increases with size and sales growth and decreases with leverage.
American Psychological Association (APA)
Sharaf, Raghad Fawzi& Haddad, Fayiz Salim. 2015. The relationship between working capital management and profitability for industrial companies listed in Amman Stock Exchange. Jordan Journal of Business Administration،Vol. 11, no. 2, pp.509-523.
https://search.emarefa.net/detail/BIM-571953
Modern Language Association (MLA)
Sharaf, Raghad Fawzi& Haddad, Fayiz Salim. The relationship between working capital management and profitability for industrial companies listed in Amman Stock Exchange. Jordan Journal of Business Administration Vol. 11, no. 2 (2015), pp.509-523.
https://search.emarefa.net/detail/BIM-571953
American Medical Association (AMA)
Sharaf, Raghad Fawzi& Haddad, Fayiz Salim. The relationship between working capital management and profitability for industrial companies listed in Amman Stock Exchange. Jordan Journal of Business Administration. 2015. Vol. 11, no. 2, pp.509-523.
https://search.emarefa.net/detail/BIM-571953
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 521-522
Record ID
BIM-571953
