“An investigation of capital investment and accounting information: evidence from Jordan”

The study goal is to investigate the effect of cash specific accounting information on the capital investment decisions. To this end, the researcher used a prepared questionnaire to selected companies in Jordan. The main result of the study has shown that there is a significant effect of three kinds of accounting information, which are related to expected cash flows: 1) data on scrapped assets at the end of investment, 2) information on money coming in and out, and 3) information on cash saving by tax (outflows). Capital investment decisions show an increased consciousness by companies and have an importance of accounting information effect. This will significantly extend in the progress of capital investment decisions in companies. The main recommendation was to use the information on accounting, such as cash flows obtained from the asset at the end of their life. Also, information on cash coming in and out of companies, and information on cash saving by outflows (tax) have a significant effect on decisions related to capital investment.


INTRODUCTION
The relationship between accounting data and the capital investment costs of companies is one of the key issues in accounting (Lambert et al., 2007; Tiron-Tudor et al., 2018; Kliestik et al., 2018).Therefore, many of the uncertainties and risks experienced by the global economy require the creation of an investment environment that is characterized by the credibility of accounting information, which helps to make investment decisions.At the same time, it is important to remember two other vital aspects, which are equally important, i.e. being socially and ethically responsible (Sroka & Vveinhardt, 2018;Shpak et al., 2018), as well as a cooperative aspect, even with competitors, which is known as competition (Cygler et al., 2018).
The main objective of the research is to analyze the role of cash specific accounting data when making decisions on capital investments.It was done by measuring the management's ability to use accounting information when deciding to invest.
The research presents and highlights the effect of accounting information on capital investment decisions.This research applied the responses of companies about their views on the level of accounting information through statistical testing of hypotheses of the study to assess the role of accounting data and capital investment decisions in companies.
The purpose of the study is to analyze the role of cash specific accounting data in making decisions to invest capital.Therefore, the study treated the following three goals of accounting information: information about cash inflows and used cash flow information beyond the annual level, information about expected cash flows at the end of asset investment, and information about operating cash outflows (as tax).
On that basis, the study will contribute to enhancing the ability of these companies to achieve the overall objectives of economic development, such as to increase the efficiency and effectiveness in the utilization of available resources the best.Also, they make the decisions on capital investment as important when decision makers are active in companies.It is indicated that the fear of low rate of financial return compared to expenses will lead to such decisions that are of interest to the company.

Problem statement and hypotheses development
The problem that was investigated in this study is whether there is an effect of cash specific accounting information on capital investment decisions?This paper explores the following questions, which are crucial to answer the main research problem: • What is the role of cash inflows and outflows (the cost of the asset purchase, the sale of assets and property) in the capital investment decisions of companies?
• What is the role of the other annual cash flow (the cost of management and operation of the original investment) decisions in the capital investment decisions of companies?
• Could there be a role of expected cash flows from sale in the capital investment decisions of companies?
• Could emerging operational cash flows (taxes) be used to make decisions on capital investment of companies?
Many researchers, both Jordanians and foreigners, have conducted substantial empirical studies related to capital investments and searched the effect of accounting data quality and capital investment clarity on companies' efficiency.The studies were carried out by Zhang (2001) • a series of responses due to the continuing effect of cash inflows and outflows; • the effect of extra annual cash flows; • the effect of expected cash flows at the end of the term of the asset investment; • the effect of operating cash flows beyond the (tax) responses due to the continuing effects of one or more stressors on investors in companies.
Therefore, the following hypothesis from the above interpretations in a null form has been formulated: H 0 : There is no statistically significant effect of accounting information on making decisions on capital investment.
The hypothesis (it will be further tested) can be divided into four sub-hypotheses according to the various interpretations of capital investment: H 01 : The effect of cash inflows and outflows has no statistical significance at the level of significance a ≤ 0.05 to make decisions on capital investment.
H 02 : The effect of the extra annual cash flows has no statistical significance at the level of significance a ≤ 0.05 regarding making decisions on capital investment.
H 03 : The effect of expected cash flows is not statistically significant at the end of the term of the asset investment (as scrap) at the level of significance a ≤ 0.05 regarding investment.
H 04 : There is no statistically significant impact of operating cash flows regarding tax at the level of significance a ≤ 0.05 in the decision-making process on capital investment.Yan and Xie (2016) have mentioned the potential consequences of reduced capital investment for many reasons.Hence, it may result from reducing the quality of capital investment.

LITERATURE REVIEW
Zhai and Wang (2016) examine the effect of accounting information on corporate investment choices, which are essential to bodies.Therefore, these will lead to a better understanding of the governance role of accounting information, to have better decisions.Tyl l a nd Pohl (2014), in their study, have shown that the stock price level was reflected by better financial position of companies, and investors used accounting information in the analysis instead of carrying out classic analysis in their investment decisions.
Also, Turner and Weickgenannt (2009) have noted that information regarding capital spending that occurs in the period has a revenue effect, which will continue for a long time.Therefore, the success of the company in the future depends on the integrity of investment decisions taken at present (Hanafi & Qaryaqs, 2002).
The key factors to be taken into account are as follows: • cash inflows and outflows; • cash used; • cash flows at the end of the term of asset investment; and • cash outflow effects in taxes.
In general, the company makes a profit, so all investment is deducted from revenue before arriving at a taxable profit.It achieves savings or tax gains for each period, and thus it can be measured with exemption such as: • depreciation method; • increase in inventory (as current assets); • tax on the gains cash from scrapping the asset at the end of the period subject to tax; • the cash flows resulting from financing and interest rates on loans and repayments of these loans, and cash outflows related to financing.

Sampling
120 questionnaires were distributed among directors from industrial companies included in the study.Only 100 were subjected to statistical analysis because of the incomplete questionnaires (see Tables 1 and 2).
The research method utilized was a questionnaire.It was distributed to selected companies.
SPSS was used to analyze the data collected through the questionnaire.The Likert Scale was used for each item of the questionnaire.The scale used three levels: A -low, B -medium, and C -high.
The evaluation measure of the study sample with the accounting information principles has been adopted, which is divided into three levels as mentioned above.Therefore, the tool given to the companies in the study consists of 50 paragraphs, as mentioned below in Tables 8, 10, 12, 14, and 16.
The stability percentage of the instrument overall was 87.9%, since the acceptable percentage for generalization in humanities and social science research results is 60% or more, as shown in Table 3.The tool as a whole 50 0.879 87.9%

Model strength test -variance inflation factors (VIF)
The variance inflation factors (VIF) test was used to verify the presence of multi-collinearity in the absence of independent variables, and Table 4 shows the results of this test.

RESULTS
The results of the above hypothesis, which will be divided into four sub-hypotheses and tested, are presented in the next sub-section.

The result of the first sub-hypothesis
H 01 : The effect of cash inflows and outflows is not statistically significant at the level of significance a ≤ 0.05 to make decisions on capital.
The results of the first sub-hypothesis show the presence of statistically significant effect at the level of significance α = 0.05 related to informa-tion on the cash inflows and outflows on the decision-making process on capital investment decisions in the companies (Table 7).Thus, increased awareness of the companies to contribute to the cash inflows and outflows of information mentioned will contribute significantly to the development of the process of making decisions on capital investment in the companies.

T-calculated T-scheduled T-significant
The result Mean This hypothesis was tested by item (1) to (10) of the questionnaire as shown in Table 8.

No. Items Mean SD Rank S 1
The company depends on data on the cash inflows used while doing various activities in making their investment decisions General mean and standard deviation 3.76 0.67 -High Table 8 shows the results of the first sub-hypothesis test.The table shows the trends of the positive responses towards the existence of a statistically significant effect at the level of significance α ≤ 0.05.The null hypothesis H 01 is then rejected.
The mean for all items was greater than 3, and the standard deviation was less than 1 for most items.
Therefore, there is an impact of information related to cash inflows and outflows on decision-making on capital investment in companies.

The result of the second sub-hypothesis
H 02 : The effect of the extra annual cash flows is not statistically significant at the level of significance a ≤ 0.05 regarding making decisions on capital investment.
The findings of the second sub-hypothesis show the statistically significant effect at the level of significance α = 0.05 related to information on annual cash outflows on the decision-making process regarding capital investment decisions in companies (Table 9).Thus, increased awareness of companies to contribute to annual cash outflows to the information presented will assist significantly in improving the process of making decisions on capital investments in companies.
Table 9. Results related to the second sub-hypothesis Source: Author's estimation (2018).

T-calculated T-scheduled T-significant
The result Mean This sub-hypothesis was tested by items 11 to 20 of the questionnaire as shown in Table 10.
The results of the second sub-hypothesis are shown in  The necessary liquidity and guarantee provided by the company to cover emergencies that the production process may face 4.12 0.67 7 High

20
The cash needed by the company offer to cover the requirements of the work and the production process 3.99 0.68 10 High General mean and standard deviation 4.22 0.39 -High

The result of the third sub-hypothesis
H 03 : The effect of expected cash flows has no statistically significant effect at the end of the term of the asset investment (as scrap) at the level of significance a ≤ 0.05 regarding making decisions on capital investment.
The results of the third sub-hypothesis are shown in Table 11.Thus, an increased awareness of the companies to contribute to expected cash flows at the end of investment (sale as scrap) will contribute significantly to improving the process of making capital investment decisions.

T-calculated T-scheduled T-significant
The result Mean This hypothesis was tested by items 21 to 30 of the questionnaire, as shown in Table 12.Table 12 shows the results of the third sub-hypothesis test.The table shows the trends of the positive responses towards the existence of a statistically significant effect at the level of significance α ≤ 0.05.The null hypothesis H 03 is thus rejected.
The mean for all items was greater than 4, and the standard deviation was less than 1 for most items.
Therefore, there is an impact of information related to the expected cash flows at the end of the term of the asset investment (the original sale as scrap) on making decisions on capital investment in companies.

The result of the fourth sub-hypothesis
H 04 : There is no statistically significant impact of operating cash flows regarding tax at the level of significance a ≤ 0.05 on the decision-making process on capital investment.
The results in Table 13 show a positive impact.It is clear that the increased awareness of the companies on the contribution of operating cash flows for the tax to the information mentioned will contribute significantly to the advancement of the process of making capital investments decisions in the companies mentioned.Table 14 presents the findings of the forth sub-hypothesis testing.The table shows the trends of the positive responses towards the existence of a statistically significant effect at the level of significance α ≤ 0.05 on the principle of ensuring that there is a basis for an effect of operating cash flows.
The null hypothesis H 04 is thus rejected.The mean was greater than 4, and the standard deviation was less than 1 for all items.
Therefore, there is an impact of information related to operating cash flows effects in taxes of making capital investment decisions in companies.

The result of the main hypothesis
There is no statistically significant effect of accounting information on making capital investment decisions in companies at the level of significance of α ≤0.05 .
The findings of testing the hypothesis reveal a general statistically significant effect at the level of significance α = 0.05 for the three types of accounting data (about the expected cash flows at the end of the term of the asset investment, information on cash inflows and outflows, and data on the cash flow of operational cash outflow effects in taxes) on the decision-making process regarding capital investments in companies.It shows that it needs more awareness from companies on accounting information.
The researcher used a t-test for each sample, and the results are shown in Table 16.The results of the main hypothesis test are shown in Table 16.The table shows the trends of the positive responses towards the existence of a statistically significant effect at α ≤ 0.05.The null hypothesis H 0 is rejected.The mean was greater than 4, and the standard deviation was less than 1 for all items.

T-calculated T-scheduled T-significant Result Mean
Thus, there is a statistically significant effect of accounting information on making capital investment decisions in companies.The necessary liquidity and guarantee provided by the company to cover emergencies that the production process may face 20 The cash needed by the company offer to cover the requirements of the work and the production process The company determines the method of depreciation that is taxable and achieves maximum savings The Company depreciates the asset within the taxable period, even if the asset has value at the end of the period The Company is working to add expected changes in undeclared reserves (inventory)

35
The Company recognizes the tax charged on the expected gains after the asset has been derecognized 36 A sufficient amount of an adequate return for the investor should be available in the accounting information, for the purpose of achieving objectivity

37
The is a need for accounting information neutrality and impartiality, to make good decisions 38 Accounting information should be displayed in to reflect the financial position of the company honestly

39
The company avoids taxes by privileges granted to them through new investments 40 The company's management should depend on a policy of consistency with the principles and methods of accounting

3 .2131
Accounting information relating to the expected cash flows at the end of the asset investment The company is interested in entering the cash flows related to assets22Accounting information is essential to the company relating to the expected cash flows at the end of the investment23 The company has the capacity to assess the assets before they are sold as scrap24 The management of the company makes the wrong decisions when neglecting the value of the scrap 25 The management of the company recognizes the expenses of scraping the asset and not omission 26 Recording all asset-related expenses is appropriate for capital decisions 27 The obligation to reduce depreciation and its expenses is appropriate for making appropriate decisions 28 The company seeks to maintain the real value of assets through conducting feasibility studies 29 Accounting information contains the adequacy of information to capital decisions 30 Accounting information for insurance to stakeholders can helps in taking the appropriate decisions 4. Accounting information related to the cash flows from operating beyond the tax Taxes are accounting information that affects capital expenditure decisions 32

Table 1 .
Valid, collected and distributed questionnaires

Table 2 .
The characteristics of the study sample

Table 3 .
Reliability of the results (internal consistency of the questionnaire items)

Table 6
shows the results of the one-sample K-S test to test the normal distribution of the study variables.

Variables of the study No. of views Z score Significance level
Note: T-test is 1.96 at the level of significance α = 0.05 in 2-tailed.

Table 7 .
Results related to the first sub-hypothesis

Table 8 .
Items related to the first sub-hypothesis Source: Author's estimation (2018).

Table 10 .
The table shows the trends of the positive responses towards the existence of a significant effect at the level of α ≤ 0.05.The null hypothesis H 02 is thus rejected.The mean is over 4, and the standard deviation was less than 1 for all items.

Table 13 .
Results of the fourth sub-hypothesis

Table 15 .
The results of the main hypothesis Source: Author's estimation (2018).
16vestment Management and Financial Innovations, Volume 16,Issue 3, 2019Accounting information related to the cash flows beyond the annual 11 The activity of company sales most important annual cash12The Company expenses of operations considered as cash outflows over the economic life of the investment asset 13The company's management takes into account anticipated changes in current assets during the period of circulation14 Can be classified as capital expenditures or as fixed assets (tangible and intangible)15The management of the company should know the nature of the expense and the purpose it provides for annual capital services16The management of the company should not repeat the capital expenditure during its normal activity cycle 17 The Company's management has the ability of capital expenditures for more than a year 18 Classification of capital expenditure in the company by type of activity and nature 19 http://dx.doi.org/10.21511/imfi.16(3).2019.11 2.