The impact of liquidity on the financial growth of industrial companies listed on the Amman Stock Exchange

This research reveals the cash liquidity’s impact on the sustainability of the financial growth of the industrial public shareholding companies listed on the Amman Stock Exchange (ASE) between (2015) and 2021. The research population consists of (53) ASE-listed public shareholding industrial compani...

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Bibliographic Details
Published in:AAU Journal of Business and Law 2023, Vol.7 (2), p.42-53
Main Authors: Injadat, Ehab, Razzak Alshehadeh, Abdul, Kourtel, Farid
Format: Article
Language:ara ; eng
Subjects:
Business growth
Cash flow statements
Financial performance
Liquidity
Online Access:Get full text
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Summary:This research reveals the cash liquidity’s impact on the sustainability of the financial growth of the industrial public shareholding companies listed on the Amman Stock Exchange (ASE) between (2015) and 2021. The research population consists of (53) ASE-listed public shareholding industrial companies. A purposeful sample of (28) companies whose financial statements have provided all the data is selected as they meet the research variables during the research years. Using (SPSS), the appropriate statistical methods are utilized for data analysis. The findings indicate that cash flow with all its indicators; net cash flow from all activities to total assets, net cash flow from all activities to total equity, net cash flow from all activities to total profit, and net operating cash flow to total assets statistically and significantly impact the sustainability of profit growth, sales and assets of these companies. However, the net cash flow from all activities to total equity does not impact sales growth. Of the recommendations of this research is that the industrial companies incorporated in this research must pay more attention to the cash flow statement and rely on the data contained therein when making investment and financing decisions by raising efficiency in managing cash liquidity, and working to determine the suitable combination of equity and debt sources as the ideal use of this mixture may lead to a reduction in the cost of capital in these companies, which maximizes the elements of sustainable financial growth and paves the way for achieving more profitable investment opportunities available.
ISSN:2521-439X
2959-2879
DOI:10.51958/AAUJBL2023V7I2P2