Liquidity and Solvency Management and its Impact on Financial Performance: Empirical Evidence from Jordan

• 발행기관: 한국유통과학회
• 저자명: Ahmad Abdelrahim DAHIYAT Sulaiman Raji WESHAH Mohammad ALDAHIYAT
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.5, 135~141쪽, 전체 7쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.05.30

영문 초록

The study aims to examine the impact of liquidity and solvency management on the financial performance of Jordanian manufacturing companies listed on the Amman Stock Exchange, for a period of 10 years from 2010 to 2019. The size of the company was used as a control variable. The study employs Return on Assets (ROA) and Earnings Per Share (EPS) to measure financial performance. Current ratio (CR) and total debts to total assets were used as proxies for liquidity and solvency management, while logarithm of total assets was used to measure the size. Correlation and multi regression analyses have been applied to analyze the data. The results show a statistically significant impact of independent and control variables (liquidity and solvency management and the size of the company) on financial performance, while the detailed results of the hypotheses indicate that liquidity has an insignificant reverse impact on financial performance. With respect to other variables, there is a significant positive impact of size on performance and a significant negative impact of solvency on performance. The study suggests in light of results, increasing investments in companies’ assets by focusing on internal financing, such that large-sized companies with low leverage will have a good performance.

목차

1. Introduction

2. Literature Review and Hypotheses

3. Research Methods

4. Results

5. Conclusion

키워드

Liquidity Solvency Performance Size Manufacturing Companies Jordan