Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Characteristics of Impact Variables of Working Capital Management (WCM) Performance in Listed Firms in Amman Stock Exchange 2002-2020

Author(s): Hamza ALOdat, Mohammad Aalaya, Ahmad AlKhateeb

This paper aims to investigate the relationship between Dependent variable as profitability (working capital management) for a sample of 306 Jordanian listed firms listed in Amman stock exchange over the period -2020, so the paper research the working capital financial performance relationship with independent variables, (Tobin's Q ratio) 2 annual sales growth, Tangible fixed assets, current ratio, cash flow, cash cycle, conversation, Used a quantitative approach using different penal data technique (OLS, fixed effect, random effect (General least square and Generalized moment method to detect the efficiency of working capital management, that which variables have a significant influence on profitability (return on equity). The research providing empirical evidence to examine the influence for Jordanian (306) firms listed in ASE particularly foe three sectors, correlation matrix were identified the association between WCM, 6 models were utilized to have the evidence of impact on ROA, negatively influenced as CCC and 1V( number of days inventory, some variables has negative influence (ASG, CC C, and C.F) of financial performance, where (TFA and AG has a positive impact of TFA with RoA, while some influence between RoA and control variables. The findings of this study suggest that policymakers and financial managers of these firms should adopt aggressive working capital management to create shareholders worth enhancing the three sectors' financial performance.

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