Mohammad Fawzi Shubita

Liquidity is a firm’s ability to pay its current obligations as they come due and thus remain in business in the short run, which reflects the ease with which assets can be converted to cash. The objective of working capital management (WCM) is to minimize the cost of maintaining liquidity while guarding against the risk of insolvency, working capital policy applies to short-term decisions, and capital structure finance applies to long-term decisions.
Several studies have been conducted on the impact of WCM on cash holding levels. The impact of WCM on liquidity and cash holding levels is analyzed in this study. The study also makes a comparison between large- and small-scale firms. Panel data for 62 Jordanian industrial firms covering an eleven-year period (2006–2016) have been analyzed. The descriptive analysis indicates that large firms hold more cash than small firms, as well as more debt, cash flow and growth.
The findings of the data set indicate that WCM, as a variable (working capital net of cash), is a strong predictor of firm cash holding levels. When a firm has several cash substitutes, it will maintain low cash levels. The separate analysis shows that there are significant differences between small- and large-scale firms for determinates related to cash holding levels. Firm size and cash flow ratios were strong predictors of cash holding levels for both samples.

This research aims to apply the value-added intellectual coefficient (VAIC) model to test the impact of intellectual capital (IC) on market value of the Jordanian industrial firms. The research increases the awareness of the need for firms of all sizes to communicate and value their business beyond capturing numbers alone. The sample for this study is 73 Jordanian manufacturing shareholders companies during the period 2005–2017. The sample employed consists of 648 firm-year observations. Market value is measured using the market capitalization over the total assets. Valuation approaches are a challenging area created to enable the stakeholders, or outside parties, to put an economic value on a firm.
The IC and its components: capital employed (CEE), structural capital (SCE), and human capital (HCE) of industrial firms have been analyzed, and their impact on market value has been estimated using regression models. The results show that there is no relationship between IC and the market value; HCE is associated with the market value, and SCE and CEE are not associated with the market value. This could be explained by the increase in employees’ training, as a regular training program is an essential factor in managers’ and employees’ performance. Practically, investors have a positive view of a firm that has higher employee expenditure than its investment in physical capital. Future research should be made on the empirical analysis of other sectors to determine whether different results and explanations can be obtained.

Traditional accounting has divided costs into variable and fixed costs, with changes made according to production levels, consequently, the cost behavior changes according to changes in the volume of production activity. Therefore, it has become necessary for successful management to understand cost behavior to face market changes and to adopt strategies that increase sales volume.
The study period covered 12 years between 2006 and 2017. The study population was from Jordanian industrial shareholding companies. Using the regression models, the main results indicated that sales expenses could not explain changes in sales revenue in Jordanian companies; there was a significant relationship between sales expense changes and sales revenues, with sales expense changes having incremental information content over sales expense levels in explaining sales revenues. There was also no significant relationship between sales expense levels, sales expense changes, and sales revenues. The study suggests that future researches should be made in order to obtain business-oriented and specific information on how the decisions affect sales behavior. Overall, the study findings enhance our understanding about companies’ cost behavior and provide useful insights into financial and management accounting literature.

The cash flow statement aids the management to ascertain the profitability and liquidity position of a company. One can understand from the cash flow statement how efficiently the company is paying its obligation in various forms of liability and expense. This study aimed to explore the ability of short-term accounting accruals to predict cash flows. The sample included 77 Jordanian companies listed between 2006–2019. Cash flows were measured by net operating cash flows, and short-term accounting accruals were expressed as: change in account receivable, change in accounts payable, change in inventories, and other accruals. The results demonstrated the ability of short-term accounting accruals to predict future cash flows. The relationship between future cash flows and the short-term accounting accruals was significant, except for its relationship to the change in accounts payable. However, the findings indicate that the size of the company has not moderated the relationship between accounting accruals and operating cash flow. The study recommends using other accounting items besides short-term accounting accruals, to improve their ability to predict future cash flows and use of control variables that can increase the predictive power of the study model, such as financial leverage and company size.

Acknowledgments
I would like to thank Amman Arab University for its great support, and for funding this study.

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.

Acknowledgments
I would like to thank Amman Arab University for its great support, and for funding this study.

The purpose of this study is to investigate the association between bank growth and the retained earnings amount for Jordanian banks between 2010 and 2020. The method to be used is regression models. Bank growth is measured using the change in total assets; income retention is measured by subtracting dividends from earnings per share and by deducting dividend per share from the operating cash flow on the accrual basis and cash basis. In addition, another specification will be used to the association between the growth of a bank’s total assets and income retention using the percentage change in the growth of a bank’s total assets and income retention on the accrual and cash basis. The findings of pooled OLS regression models and random effect models show that there is no relationship between income retention using the accrual basis and the bank total assets growth (Adj-R2 was –005). There is a significant relationship between income retention using the cash basis and the bank growth in total assets (Adj-R2 was 14%). There is no significant association between change in income retention using the cash basis and the bank growth in total assets, and bank size affects the relationship between income retention and bank growth in total assets. Users of financial statements need to be aware of the association between the several variables used in this study to make sound decisions.

The study aims to determine the connection between intellectual capital (IC) and financial performance of the Jordanian industrial listed companies. The methodology uses regression models, the IC will be measured using the VAIC model (value-added intellectual coefficient), on the other hand, company performance will be measured using return on equity (ROE). The main model includes financial leverage as a control variable to study the leverage role in the association between IC and return on equity. The study also investigates the incremental information content for intellectual capital components in explaining the change in firm performance. In addition, the size effect is studied to show if the company’s size affects the link between ROE and IC. The sample for this study is 77 Jordanian industrial firms and 788 company-year observations during the period 2006–2020. The study results are as follows: Intellectual capital has an important influence on industrial firm performance; Intellectual capital components have a significant impact on industrial firm performance. In particular, human capital efficiency (HCE) and capital employed efficiency (CEE) have a positive influence on ROE, and structural Capital efficiency (SCE) has a negative impact on firm performance. Lastly, firm size has an effect on the relationship between IC and industrial company performance.

This paper deals with the link between intellectual capital and the Jordanian industrial listed companies’ growth. This relationship is meaningful for the companies to enhance their interest in intangible assets. The study employed a regression analysis; independent variables are intellectual capital and intellectual capital components (human capital, structural capital, and capital employed). The current ratio is used as a control variable. The study sample, which contains 785 observations, is divided into the firms that generate positive ROE and those that generate negative ROE. The study sample included 77 Jordanian industrial listed firms during the period 2006–2020. The paper found that intellectual capital does not have a significant effect on industrial firm growth and its components do not have a significant effect on industrial firm growth. The main conclusions drawn from these results are that the return on equity do not affect the link between intellectual capital and industrial firms’ growth. The paper recommended applying the study models to other sectors like banks and service sectors and including other control variables like leverage and company size in these models.

Bank stakeholders such as investors, creditors, and other stakeholders of a bank, expect full disclosure to evaluate banks’ financial statements. To achieve this goal, bank managers can increase the value of a bank by enhancing the return on their investments. This study examines the impact of financial performance on the market value of Jordanian public shareholding banks. The study model examines the effect of return on investment (ROI), debt ratio, dividend policy, and current ratio while controlling for bank size. Bank value is measured using the market value. The sample is Jordanian banks listed on the Amman Stock Exchange between 2005 and 2020. To investigate the link between the study variables, the random effect model, panel least squares approach, correlation analysis, and descriptive measures are used. The findings indicate that banks own 3.025 JD from current assets for each JD from current liabilities. In addition, the debt ratio is 38.4% from total assets. Adj R2 for the study model is 22.1%. The results show that profitability, leverage, and bank size significantly affect the value of Jordanian banks, while dividend policy and liquidity do not have a significant impact.

A marketing strategy is a firm’s overall plan for reaching prospective consumers and turning them into permanent customers of their services or products. This paper aims to investigate the link between profitability and marketing strategy to understand how firm profitability influences marketing strategy. Moreover, it assesses the impact of return on assets (ROA) on the company’s marketing strategy. The study uses random effect regression models; a marketing strategy is measured using a sales expenses ratio, which equals sales expenses over total assets. The firm size is a control variable represented by the total sales normal logarithm. The study sample comprises Jordanian industrial shareholder companies; the analysis period is from 2005 to 2020. The study collected 808 annual observations. The findings reveal that ROA has a statistically significant effect on marketing strategy, but its components have no effect. The adj-R2 (the explanatory power) for model 1 is 18.8%, and for model 2 is 11.4%. Therefore, the main conclusion is that ROA components do not have any incremental information content in explaining the marketing strategy variance. The study recommends industrial firms in Jordan increase their profitability by adopting a diverse marketing strategy, focusing on customer satisfaction, investing in market research, using social media, and developing a strong brand image.

This study aims to examine the relationship between sticky cost behavior and supply chain management of Jordanian manufacturing firms. The data are collected using a questionnaire targeting 25 Jordanian manufacturing firms. The data were analyzed using multiple regression analysis and correlation. The results reveal a positive relationship between supply chain management and sticky cost behavior (the correlation factor is 81.2%), indicating that the higher the level of sticky costs, the higher the supply chain management level. Moreover, the study found a positive and significant link between target costing and supply chain management (the correlation factor is 68.1%). The findings suggest that manufacturing companies in Jordan should consider the impact of sticky cost behavior on their supply chain management practices and that target costing can be an effective approach to improve supply chain management. The study adds to the previous studies on cost behavior and supply chain management, providing insights for manufacturing companies in Jordan and beyond on improving their supply chain management practices.

Acknowledgment
I want to thank Amman Arab University for funding this study.

This study investigates the relationship between cash flow volatility and leverage in Jordanian firms. The research purpose is to investigate whether cash flow volatility affects a company’s capital structure in Jordan. Panel data analysis is used in this study for a sample of 72 shareholder non-financial companies in Jordan from 2009 to 2020. The findings show that cash flow volatility has a significant link with leverage, indicating that companies with higher cash flow volatility tend to use more debt financing. In addition, the study finds that firm size, return on assets, and tangibility are positively associated with leverage, while growth is not significantly related. The study suggests that firms in Jordan should take cash flow volatility in consideration when making capital structure decisions.

The study provides evidence that cash flow volatility is a vital determinant of leverage in Jordanian companies. The findings suggest that managers should consider the cash flow volatility effect on the capital structure alternatives of their firms.

Acknowledgment
I want to thank Amman Arab University for its support.

This study investigates the effect of human capital and structural capital on leverage for Jordanian industrial firms from 2006 to 2020. The relevance of this topic lies in the importance of capital structure decisions for firm value and the limited research conducted on the topic in Jordan. The aim is to examine whether human capital efficiency and structural capital efficiency significantly affect leverage. The sample includes 77 industrial firms. The study employs multiple regression analysis to test the hypotheses, controlling for variables such as return on equity and firm size. The findings show that structural capital efficiency does not significantly affect leverage, but human capital efficiency and ROE have significant effects. Furthermore, the study finds that the relationship between these variables differs between large and small companies. This implies that firms with more efficient human capital tend to use less debt financing. The study concludes that human and structural capital efficiency should be considered when making capital structure decisions, as they can affect the optimal level of debt financing. The practical value is the insights for firms in Jordan and other emerging markets on optimizing their capital structure decisions by considering their human and structural capital efficiency. These results contribute to the literature on firm performance determinants in emerging economies and offer valuable information for practitioners and policymakers.

Acknowledgment
I want to thank Amman Arab University for funding this study.

The primary objective of this study is to investigate the correlation between profitability and the banks market value, while controlling for bank size as indicated by total assets. Two main models are analyzed, namely the benchmark model and the main model, to estimate the impact of high and low profitability on market value. The sample for this study consists of Jordanian banks covering the period from 2010 to 2020. The study results reveal that banks with high profitability exhibit a higher market value compared to those with low profitability, underscoring the crucial role of profitability as a determinant of bank value. Furthermore, the study establishes a link between low and high ROE and market value, indicating that variations in ROE significantly affect market value. Moreover, the study demonstrates a positive link between earnings and market value, emphasizing the significance of bank earnings in influencing market value. Lastly, the study emphasizes the role of bank size in shaping the link between ROE and market value, highlighting the importance of considering bank size when examining the link between profitability and market value.

Acknowledgment
I thank Amman Arab University for funding this research.