Working Capital Efficiency and Earning Management in Jordan
Abstract
Industrial companies suffer from financial crises and challenges caused by mismanagement of working capital. The inability of industrial companies to provide an appropriate level of cash flow to cover their expenses and pay their financial obligations may negatively affect their existence and continuity. However, this paper aims to provide some literature to examine the mediating role of sales growth and the debt ratio between working capital efficiency and profit management in Jordan. A relationship is found between working capital management and earnings management. Furthermore, the etiquette related to working capital and earnings management was reviewed. It is hoped that the results of this study will help researchers in their future studies to research this topic from various aspects to develop and develop knowledge. In other words, the importance of this study lies in its attempt to make modest contributions to the library of Arab and foreign sciences using a scientific method capable of achieving the objectives of the study, as it helps researchers and those interested in corporate governance and profit management.
References
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Bhattacharya, H. (2021). Working capital management: Strategies and techniques. PHI Learning Pvt. Ltd..
Blinder, A. S. dan Maccini, L. J. (1991). The Resurgence of Inventory Research: What have We Learned? Journal of Economic Survey, 5, 291-328.
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Chakrabarty, S., & Bass, A. E. (2014). Corporate governance in microfinance institutions: Board composition and the ability to face institutional voids. Corporate Governance: An International Review, 22(5), 367-386.
Charitou, M.S., Elfani, M., and Lois, P. (2010). The effect of Working Capital Management on Firm's Profitability: Empirical Evidence from an Emerging Market. Journal of Business & Economic Research. 8 (12), 63-68.
Chen, J., Sensini, L. (2014). Net working capital, Cash flow and Performance of SMEs: an exploratory study. Small and Medium Size Enterprises: Governance, Management and Performance, 296-315, Malta Univ. Press.
Chhapra, I. U., & Naqvi, N. A. (2010). Relationship between efficiency level of working capital management and profitability of firms in the textile sector of Pakistan. Indus Journal of Management & Social Sciences, 4 (1), 30-42.
Ching, H.Y., Novazzi, A., and Gerab, F. (2011). Relationship between Working Capital Management and Profitability in Brazilian listed companies. Journal of Global Business and Economics, 3 (1), 74-86.
Clayman, M. R., Fridson, M. S., & Troughton, G. H. (2012). Corporate finance: A practical approach. John Wiley & Sons. 42.
Danuletiu, A.E. (2010). Working Capital Management and profitability: A case of Alba County Companies. Annales Universitatis Apulensis series economica, 12(1), 364-374.
De Almeida, J. R., & Eid Jr, W. (2014). Access to finance, working capital management and company value: Evidences from Brazilian companies listed on BM&FBOVESPA. Journal of Business Research, 67(5), 924-934.
Dong, H. P., and Su, J. (2010). The relationship between working capital management and Profitability: a Vietnam case. International Research Journal of Finance and Economics. (49), 59-67.
Eljelly, A. M. A. (2004). Liquidity-profitability trade off: An empirical investigation in a emerging market. International Journal of Commerce and Management, 14 (2), 48-61.
Enow, S. T., & Brijlal, P. (2014). The effect of working capital management on profitability: The case of Small Medium and Micro Enterprises in South Africa. The Journal of Accounting and Management, 4(2).
Enqvist, J., Graham, M., & Nikkinen, J. (2014). The impact of working capital management on firm profitability in different business cycles: evidence from Finland. Research in International Business and Finance, 32, 36-49.
Enqvist, J., Graham, M., & Nikkinen, J. (2014). The impact of working capital management on firm profitability in different business cycles: Evidence from Finland. Research in International Business and finance, 32, 36-49.
Erasmus, P. D. (2010). Working capital management and profitability: The relationship between the net trade cycle and return on assets. Management Dynamics: Journal of the Southern African Institute for Management Scientists, 19(1), 2-10.
Faudziah Zainal Abidin, Faizah Ismail dan Nasruddin Zainuddin. (2000). Prinsip pengurusan Kewangan. Prentice Hall.
Filbeck, G., Zhao, X., & Knoll, R. (2017). An analysis of working capital efficiency and shareholder return. Review of Quantitative Finance and Accounting, 48(1), 265-288.
Firmansyah, I., & Devi, A. (2017). The implementation strategies of good corporate governance for zakat institutions in Indonesia. International Journal of Zakat, 2(2), 85-97.
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Published
2023-06-01
How to Cite
AHMED MASA'DEH, Mohammad Abdul-Hamid et al.
Working Capital Efficiency and Earning Management in Jordan.
International Journal of Advanced Research in Economics and Finance, [S.l.], v. 5, n. 2, p. 28-42, june 2023.
ISSN 2682-812X.
Available at: <https://myjms.mohe.gov.my/index.php/ijaref/article/view/22262>. Date accessed: 13 oct. 2024.
Section
English Section
