Analyzing the cash conversion cycle relationship with the financial performance of chemical firms: Evidence from Amman Stock Exchange

Obeidat, M.; Almomani, T.; Almomani, M.

Growing Science » Accounting » Analyzing the cash conversion cycle relationship with the financial performance of chemical firms: Evidence from Amman Stock Exchange

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ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print) Quarterly Publication Volume 7 Issue 6 pp. 1339-1346 , 2021

Analyzing the cash conversion cycle relationship with the financial performance of chemical firms: Evidence from Amman Stock Exchange Pages 1339-1346 Download PDF

Authors: Mohammed Ibrahim Sultan Obeidat, Tareq Mohammad Almomani, Mohammad Abdullah Almomani

DOI: 10.5267/j.ac.2021.4.004

Keywords: Cash Conversion Cycle, Financial Performance, Profitability, Return on Equity, Earnings per Share

Abstract: The main purpose of the study is to investigate whether the cash conversion cycle has an impact on the financial performance of listed chemical firms in Amman Stock Exchange. To achieve the objectives of the study, data covering the period 2010-2019 of 5 among a total of 6 listed chemical firms were collected and used in analysis and hypotheses testing. The excluded firm was eliminated because its information was incomplete along the study period. Return on equity and earnings per share were used as indicators for financial performance in a separate form. The study involved two hypotheses, and both hypotheses were tested under the 95 percent level of confidence. Descriptive statistics including the mean and variance, in addition to correlation, were used in data analysis. Using both of the multiple and single regression models, the study showed that the cash conversion cycle had a significant impact on the financial performance of firms. Moreover, both of the controls were found significantly affecting the financial performance.

How to cite this paper

 Obeidat, M., Almomani, T & Almomani, M. (2021). Analyzing the cash conversion cycle relationship with the financial performance of chemical firms: Evidence from Amman Stock Exchange.Accounting, 7(6), 1339-1346.

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