Dynamic Elasticities Between Financial Performance and Determinants of Mining and Extractive Companies in Jordan

• 발행기관: 한국유통과학회
• 저자명: Nora Yusma Yusop Jad Alkareem Alhyari Hussain Ali Bekhet
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.7, 433~446쪽, 전체 14쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.07.30

영문 초록

This study aims to identify the elasticities and casualties of financial performance and determinants of the mining and extractive companies listed in Jordan’s stock market over the 2005–2018 period. The conceptual framework is based on the Resource-Based View theory and Arbitrage Pricing theory is used to describe the relationship between the external environment and the financial performance of the companies. Profitability ratio (return on assets) is utilized as a proxy of financial performance measurement. Meantime, the company’s characteristics, macroeconomic variables, and non-economic factors are utilized as independent factors. Data sources are panel data set for mining and extractive companies over the above period. Fully Modified Ordinary Least Square (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Pooled Mean Group (PMG) methods are applied. The empirical findings indicated that company size, sales growth, financial leverage, liquidity, and GDP growth were the critical determinants of mining and extractive companies’ financial performance in the Amman Stock Exchange. Thus, the findings conclude that company characteristics and GDP growth mainly drive financial performance. Moreover, the findings reveal that a bidirectional causal elasticity exists between GDP and financial leverage and return on assets (ROA). Sound financial performance can be obtained by paying more attention to GDP growth and firms’ characteristics.

목차

1. Introduction

2. Theoretical Framework and Past Studies

3. Data, Variables, and Methodology

4. Empirical Results

5. Conclusion and Recommendations

키워드

Financial Performance Amman Stock Exchange Panel Autoregressive Distributed Lag Granger Causality Jordan