An investigation of capital investment and accounting information: evidence from Jordan


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The study goal is to investigate the effect of cash specific accounting information on the capital investment decisions. To this end, the researcher used a prepared questionnaire to selected companies in Jordan. The main result of the study has shown that there is a significant effect of three kinds of accounting information, which are related to expected cash flows: 1) data on scrapped assets at the end of investment, 2) information on money coming in and out, and 3) information on cash saving by tax (outflows). Capital investment decisions show an increased consciousness by companies and have an importance of accounting information effect. This will significantly extend in the progress of capital investment decisions in companies. The main recommendation was to use the information on accounting, such as cash flows obtained from the asset at the end of their life. Also, information on cash coming in and out of companies, and information on cash saving by outflows (tax) have a significant effect on decisions related to capital investment.

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    • Table 1. Valid, collected and distributed questionnaires
    • Table 2. The characteristics of the study sample
    • Table 3. Reliability of the results (internal consistency of the questionnaire items)
    • Table 4. VIF’s results
    • Table 5. Mean and standard deviation
    • Table 6. Normal distribution test (one-sample Kolmogorov-Smirnov test)
    • Table 7. Results related to the first sub-hypothesis
    • Table 8. Items related to the first sub-hypothesis
    • Table 9. Results related to the second sub-hypothesis
    • Table 10. Items related to the second sub-hypothesis
    • Table 11. Results of the third sub-hypothesis
    • Table 12. Items related to the third sub-hypothesis
    • Table 13. Results of the fourth sub-hypothesis
    • Table 14. Items related the to fourth sub-hypothesis
    • Table 15. The results of the main hypothesis
    • Table 16. Items related to the main hypothesis