أثر إدارة رأس المال العامل على ربحية الشركات الصناعية المساهمة العامة الأردنية

Abstract EN

The study examined the impact of working capital management (average inventory period, average collection period, average payment period, cash conversion cycle, net trading cycle) on the profitability of Jordanian industrial corporations listed in Amman Stock Exchange (ASE) during the period (2008-2013).

In addition, the study examined the impact of the controlled variables (company size, sales growth, debt ratio) on the profitability of Jordanian industrial corporations listed in Amman Stock Exchange (ASE).

The study used operating profit margin, return on assets, and return on equity as measures of profitability.

To achieve the aims of the study, data were obtained from the annual financial reports published in the Amman Stock Exchange (ASE) for a simple random sample of (25) of the study population which consists of (75) industrial corporations listed in Amman Stock Exchange (ASE) until the end of 2013, and to test the hypotheses of the study, multiple regression analysis was used.

The study reached the followings results: All independent variables related to working capital management and control variables explained for (48.2%) and (38.7%) of the operating profit margin and return on assets variation in the Jordanian industrial corporations listed in Amman Stock Exchange (ASE) respectively.

All independent variables related to working capital management and control variables were not able to explain the variation on returns on equity.

The study has recommended Jordanian industrial corporations to pay more attention on all components of working capital management (inventory period, collection period, payment period, cash conversion cycle, net trading cycle) when performing the different operational processes in the corporation, as the results of the study has indicated a significant positive effect for the working capital management on the operating profit margin and returns on assets in Jordanian industrial corporations.