Mohammad Fawzi Shubita

Liquidity is a firm’s ability to pay its current obligations as they come due and thus remain in business in the short run, which reflects the ease with which assets can be converted to cash. The objective of working capital management (WCM) is to minimize the cost of maintaining liquidity while guarding against the risk of insolvency, working capital policy applies to short-term decisions, and capital structure finance applies to long-term decisions.
Several studies have been conducted on the impact of WCM on cash holding levels. The impact of WCM on liquidity and cash holding levels is analyzed in this study. The study also makes a comparison between large- and small-scale firms. Panel data for 62 Jordanian industrial firms covering an eleven-year period (2006–2016) have been analyzed. The descriptive analysis indicates that large firms hold more cash than small firms, as well as more debt, cash flow and growth.
The findings of the data set indicate that WCM, as a variable (working capital net of cash), is a strong predictor of firm cash holding levels. When a firm has several cash substitutes, it will maintain low cash levels. The separate analysis shows that there are significant differences between small- and large-scale firms for determinates related to cash holding levels. Firm size and cash flow ratios were strong predictors of cash holding levels for both samples.

This research aims to apply the value-added intellectual coefficient (VAIC) model to test the impact of intellectual capital (IC) on market value of the Jordanian industrial firms. The research increases the awareness of the need for firms of all sizes to communicate and value their business beyond capturing numbers alone. The sample for this study is 73 Jordanian manufacturing shareholders companies during the period 2005–2017. The sample employed consists of 648 firm-year observations. Market value is measured using the market capitalization over the total assets. Valuation approaches are a challenging area created to enable the stakeholders, or outside parties, to put an economic value on a firm.
The IC and its components: capital employed (CEE), structural capital (SCE), and human capital (HCE) of industrial firms have been analyzed, and their impact on market value has been estimated using regression models. The results show that there is no relationship between IC and the market value; HCE is associated with the market value, and SCE and CEE are not associated with the market value. This could be explained by the increase in employees’ training, as a regular training program is an essential factor in managers’ and employees’ performance. Practically, investors have a positive view of a firm that has higher employee expenditure than its investment in physical capital. Future research should be made on the empirical analysis of other sectors to determine whether different results and explanations can be obtained.

Traditional accounting has divided costs into variable and fixed costs, with changes made according to production levels, consequently, the cost behavior changes according to changes in the volume of production activity. Therefore, it has become necessary for successful management to understand cost behavior to face market changes and to adopt strategies that increase sales volume.
The study period covered 12 years between 2006 and 2017. The study population was from Jordanian industrial shareholding companies. Using the regression models, the main results indicated that sales expenses could not explain changes in sales revenue in Jordanian companies; there was a significant relationship between sales expense changes and sales revenues, with sales expense changes having incremental information content over sales expense levels in explaining sales revenues. There was also no significant relationship between sales expense levels, sales expense changes, and sales revenues. The study suggests that future researches should be made in order to obtain business-oriented and specific information on how the decisions affect sales behavior. Overall, the study findings enhance our understanding about companies’ cost behavior and provide useful insights into financial and management accounting literature.

The cash flow statement aids the management to ascertain the profitability and liquidity position of a company. One can understand from the cash flow statement how efficiently the company is paying its obligation in various forms of liability and expense. This study aimed to explore the ability of short-term accounting accruals to predict cash flows. The sample included 77 Jordanian companies listed between 2006–2019. Cash flows were measured by net operating cash flows, and short-term accounting accruals were expressed as: change in account receivable, change in accounts payable, change in inventories, and other accruals. The results demonstrated the ability of short-term accounting accruals to predict future cash flows. The relationship between future cash flows and the short-term accounting accruals was significant, except for its relationship to the change in accounts payable. However, the findings indicate that the size of the company has not moderated the relationship between accounting accruals and operating cash flow. The study recommends using other accounting items besides short-term accounting accruals, to improve their ability to predict future cash flows and use of control variables that can increase the predictive power of the study model, such as financial leverage and company size.

Acknowledgments
I would like to thank Amman Arab University for its great support, and for funding this study.

This study aims to investigate the ability of cash flows components to predict the earning and to know the extent of the relationship between accounting profits and cash flow measures. The study sample consisted of 77 industrial companies listed on the Amman Stock Exchange in Jordan for the period from 2006 to 2019. This study relied on the regression method to test the relationship between the study variables. The study findings showed that the cash flows from operating, investing, and financial activities have a statistically significant impact on predicting future earnings. The study also examined the effect of length of operating cycle and company’s size on the predictive ability of cash flows regarding future earnings. The main results for this aspect are that large companies and short operating cycle companies have higher prediction ability for future earnings than small and long operating cycle companies. This paper provides evidence of the information content of cash flows for future earnings in emerging markets like Jordan and is important for Jordanian shareholders by enabling them to evaluate company’s performance.

Acknowledgments
I would like to thank Amman Arab University for its great support, and for funding this study.

The purpose of this study is to investigate the association between bank growth and the retained earnings amount for Jordanian banks between 2010 and 2020. The method to be used is regression models. Bank growth is measured using the change in total assets; income retention is measured by subtracting dividends from earnings per share and by deducting dividend per share from the operating cash flow on the accrual basis and cash basis. In addition, another specification will be used to the association between the growth of a bank’s total assets and income retention using the percentage change in the growth of a bank’s total assets and income retention on the accrual and cash basis. The findings of pooled OLS regression models and random effect models show that there is no relationship between income retention using the accrual basis and the bank total assets growth (Adj-R2 was –005). There is a significant relationship between income retention using the cash basis and the bank growth in total assets (Adj-R2 was 14%). There is no significant association between change in income retention using the cash basis and the bank growth in total assets, and bank size affects the relationship between income retention and bank growth in total assets. Users of financial statements need to be aware of the association between the several variables used in this study to make sound decisions.

The study aims to determine the connection between intellectual capital (IC) and financial performance of the Jordanian industrial listed companies. The methodology uses regression models, the IC will be measured using the VAIC model (value-added intellectual coefficient), on the other hand, company performance will be measured using return on equity (ROE). The main model includes financial leverage as a control variable to study the leverage role in the association between IC and return on equity. The study also investigates the incremental information content for intellectual capital components in explaining the change in firm performance. In addition, the size effect is studied to show if the company’s size affects the link between ROE and IC. The sample for this study is 77 Jordanian industrial firms and 788 company-year observations during the period 2006–2020. The study results are as follows: Intellectual capital has an important influence on industrial firm performance; Intellectual capital components have a significant impact on industrial firm performance. In particular, human capital efficiency (HCE) and capital employed efficiency (CEE) have a positive influence on ROE, and structural Capital efficiency (SCE) has a negative impact on firm performance. Lastly, firm size has an effect on the relationship between IC and industrial company performance.

This paper deals with the link between intellectual capital and the Jordanian industrial listed companies’ growth. This relationship is meaningful for the companies to enhance their interest in intangible assets. The study employed a regression analysis; independent variables are intellectual capital and intellectual capital components (human capital, structural capital, and capital employed). The current ratio is used as a control variable. The study sample, which contains 785 observations, is divided into the firms that generate positive ROE and those that generate negative ROE. The study sample included 77 Jordanian industrial listed firms during the period 2006–2020. The paper found that intellectual capital does not have a significant effect on industrial firm growth and its components do not have a significant effect on industrial firm growth. The main conclusions drawn from these results are that the return on equity do not affect the link between intellectual capital and industrial firms’ growth. The paper recommended applying the study models to other sectors like banks and service sectors and including other control variables like leverage and company size in these models.

Bank stakeholders such as investors, creditors, and other stakeholders of a bank, expect full disclosure to evaluate banks’ financial statements. To achieve this goal, bank managers can increase the value of a bank by enhancing the return on their investments. This study examines the impact of financial performance on the market value of Jordanian public shareholding banks. The study model examines the effect of return on investment (ROI), debt ratio, dividend policy, and current ratio while controlling for bank size. Bank value is measured using the market value. The sample is Jordanian banks listed on the Amman Stock Exchange between 2005 and 2020. To investigate the link between the study variables, the random effect model, panel least squares approach, correlation analysis, and descriptive measures are used. The findings indicate that banks own 3.025 JD from current assets for each JD from current liabilities. In addition, the debt ratio is 38.4% from total assets. Adj R2 for the study model is 22.1%. The results show that profitability, leverage, and bank size significantly affect the value of Jordanian banks, while dividend policy and liquidity do not have a significant impact.

A marketing strategy is a firm’s overall plan for reaching prospective consumers and turning them into permanent customers of their services or products. This paper aims to investigate the link between profitability and marketing strategy to understand how firm profitability influences marketing strategy. Moreover, it assesses the impact of return on assets (ROA) on the company’s marketing strategy. The study uses random effect regression models; a marketing strategy is measured using a sales expenses ratio, which equals sales expenses over total assets. The firm size is a control variable represented by the total sales normal logarithm. The study sample comprises Jordanian industrial shareholder companies; the analysis period is from 2005 to 2020. The study collected 808 annual observations. The findings reveal that ROA has a statistically significant effect on marketing strategy, but its components have no effect. The adj-R2 (the explanatory power) for model 1 is 18.8%, and for model 2 is 11.4%. Therefore, the main conclusion is that ROA components do not have any incremental information content in explaining the marketing strategy variance. The study recommends industrial firms in Jordan increase their profitability by adopting a diverse marketing strategy, focusing on customer satisfaction, investing in market research, using social media, and developing a strong brand image.

This study aims to examine the relationship between sticky cost behavior and supply chain management of Jordanian manufacturing firms. The data are collected using a questionnaire targeting 25 Jordanian manufacturing firms. The data were analyzed using multiple regression analysis and correlation. The results reveal a positive relationship between supply chain management and sticky cost behavior (the correlation factor is 81.2%), indicating that the higher the level of sticky costs, the higher the supply chain management level. Moreover, the study found a positive and significant link between target costing and supply chain management (the correlation factor is 68.1%). The findings suggest that manufacturing companies in Jordan should consider the impact of sticky cost behavior on their supply chain management practices and that target costing can be an effective approach to improve supply chain management. The study adds to the previous studies on cost behavior and supply chain management, providing insights for manufacturing companies in Jordan and beyond on improving their supply chain management practices.

Acknowledgment
I want to thank Amman Arab University for funding this study.

This study investigates the relationship between cash flow volatility and leverage in Jordanian firms. The research purpose is to investigate whether cash flow volatility affects a company’s capital structure in Jordan. Panel data analysis is used in this study for a sample of 72 shareholder non-financial companies in Jordan from 2009 to 2020. The findings show that cash flow volatility has a significant link with leverage, indicating that companies with higher cash flow volatility tend to use more debt financing. In addition, the study finds that firm size, return on assets, and tangibility are positively associated with leverage, while growth is not significantly related. The study suggests that firms in Jordan should take cash flow volatility in consideration when making capital structure decisions.

The study provides evidence that cash flow volatility is a vital determinant of leverage in Jordanian companies. The findings suggest that managers should consider the cash flow volatility effect on the capital structure alternatives of their firms.

Acknowledgment
I want to thank Amman Arab University for its support.

This study investigates the effect of human capital and structural capital on leverage for Jordanian industrial firms from 2006 to 2020. The relevance of this topic lies in the importance of capital structure decisions for firm value and the limited research conducted on the topic in Jordan. The aim is to examine whether human capital efficiency and structural capital efficiency significantly affect leverage. The sample includes 77 industrial firms. The study employs multiple regression analysis to test the hypotheses, controlling for variables such as return on equity and firm size. The findings show that structural capital efficiency does not significantly affect leverage, but human capital efficiency and ROE have significant effects. Furthermore, the study finds that the relationship between these variables differs between large and small companies. This implies that firms with more efficient human capital tend to use less debt financing. The study concludes that human and structural capital efficiency should be considered when making capital structure decisions, as they can affect the optimal level of debt financing. The practical value is the insights for firms in Jordan and other emerging markets on optimizing their capital structure decisions by considering their human and structural capital efficiency. These results contribute to the literature on firm performance determinants in emerging economies and offer valuable information for practitioners and policymakers.

Acknowledgment
I want to thank Amman Arab University for funding this study.

The primary objective of this study is to investigate the correlation between profitability and the banks market value, while controlling for bank size as indicated by total assets. Two main models are analyzed, namely the benchmark model and the main model, to estimate the impact of high and low profitability on market value. The sample for this study consists of Jordanian banks covering the period from 2010 to 2020. The study results reveal that banks with high profitability exhibit a higher market value compared to those with low profitability, underscoring the crucial role of profitability as a determinant of bank value. Furthermore, the study establishes a link between low and high ROE and market value, indicating that variations in ROE significantly affect market value. Moreover, the study demonstrates a positive link between earnings and market value, emphasizing the significance of bank earnings in influencing market value. Lastly, the study emphasizes the role of bank size in shaping the link between ROE and market value, highlighting the importance of considering bank size when examining the link between profitability and market value.

Acknowledgment
I thank Amman Arab University for funding this research.

This study investigates the impact of corporate governance components on intellectual capital performance in Jordanian banks. The research purpose is to gain insights into the relationship between various corporate governance components, including board size, board independence, CEO duality, and concentration of ownership, and their influence on intellectual capital efficiency. Ordinary Least Squares regression analysis is employed using data from 156 Jordanian banks by adding two control variables, total assets, and return on equity (ROE) to explore their potential influence. The obtained results reveal significant associations between certain corporate governance factors and intellectual capital efficiency. Ownership concentration demonstrates a direct and statistically relationship with IC performance, indicating that more concentrated ownership leads to improved management and utilization of intellectual capital resources. Additionally, return on equity shows a significant positive correlation with intellectual capital efficiency (Adj R2 was 22.5%). However, the study does not find significant relationships between board size, Chief Executive Officer (CEO) duality, and board independence with intellectual capital efficiency in Jordanian banks. These results suggest that the impact of these governance factors on IC performance may be more context-dependent and nuanced within the banking industry.

The relevance of this study lies in the importance of the two variables – profitability and cash flow – for the financial performance of banks, as well as the unique characteristics of the Jordanian banking sector. The purpose of the study is to investigate whether there is a significant relationship between profitability and cash flow in Jordanian banks and to identify potential factors that influence this relationship. The study methods are to employ a quantitative research method, using financial data from Jordanian banks over a period (2008–2019), Granger causality tests are used to describe the link between cash flow and profitability. The study results show a significant link between profitability and cash flow in Jordanian banks. Specifically, the study finds that a one percent increase in cash flow results in a 0.27 percent increase in profitability. The Adj-R2 for the three cash flow models is 11.4%, 17.3%, and 20.4%, respectively. Conversely, the Adj-R2 for the three models’ earnings are 21.4%, 21.5%, and 22.3%, respectively. However, the magnitude of the link seems to be weaker in Jordanian banks compared to banks in other countries. The study concludes that cash flow from operating is an important factor in improving the profitability of Jordanian banks.

The study aims to examine the intricate interplay between sales growth, profitability, and tax avoidance strategies adopted by firms. Through an analysis of a diverse dataset spanning multiple industries and regions, this study investigates how sales growth influences a firm’s marketing approach to tax avoidance and its subsequent impact on profitability. The sample is Jordanian industrial firms listed on the Amman Stock Exchange for the study period between 2010 and 2020. Four critical variables used in the dataset are tax avoidance, return on assets, sales, and size. It employs a mixed-methods approach, including quantitative regression analysis and qualitative assessments of corporate tax strategies. The study results reveal a strong negative relationship between ROA and tax avoidance; for every unit increase in ROA, tax avoidance decreases by 0.198 units. Sales, however, do not exhibit a statistically significant association with tax avoidance. Firm size is an additional predictor with a marginally significant direct link with tax avoidance (β = 0.042, p = 0.049). This study highlights the central role of profitability in shaping tax avoidance strategies, with larger firms marginally more inclined toward tax planning.

Digital transformation refers to strategic activities undertaken by organizations to improve and simplify their process and even alter their business models with abreast to enhance firm performance. Thus, the aim of this study was to analyze the impact of digital transformation on organizational performance among the Jordanian commercial banks listed on the Amman Stock Exchange. The descriptive research design was used in this quantitative study. Primary data were collected to achieve the objectives of the study. The target population was employees (managers and non-managers) of Jordanian commercial banks listed on the Amman Stock Exchange. The sample size was selected using Krejcie and Morgan rule; after data cleaning procedures, the final sample of 282 respondents was used for final analysis. The study employed regression analysis to arrive at the results. The results confirm that digital transformation has a significant positive effect on customer experience and IT innovation. These results were significant at a 1% level. The results also confirm that digital transformation has a significant positive effect on firm performance, with a significance level of 1%. Moreover, the significant positive impact of customer experience and IT innovation was confirmed. Therefore, the significant positive impact of digital transformation on firm performance was found viz-a-viz direct as well as indirect route.

This study investigated the effect of tax avoidance (TAV) on company value in Jordan, with a specific focus on the moderating role of leverage. The sample is 55 Jordanian industrial firms listed on the Amman Stock Exchange for the study period from 2005 to 2022. Given the evolving regulatory landscape and the importance of tax planning strategies for corporate performance, understanding these dynamics is critical. Employing panel data analysis spanning several years, the study examined the link between tax avoidance, leverage, and company value. The results indicated a significant negative association between TAV and firm value (the correlation between them is –29.3%), suggesting that firms engaging in higher levels of TAV experience lower market valuations. Additionally, the analysis reveals that leverage plays a crucial moderating role in this relationship, amplifying the negative impact of TAV on firm value. The study also found a strong correlation between firm value and size, and the relationship between firm value and ROA remains significant and positive. These findings provided valuable information for policymakers, corporate executives, and investors navigating the complexities of contemporary business environments in Jordan and beyond.

This study explores the intricate relationships between bank value, tax avoidance, and profitability, which significantly affect the stability and strategies of financial institutions worldwide. Understanding these connections is vital for comprehending the financial dynamics of banks, key players in economic growth and stability. The study focuses on these three factors due to their intertwined roles in shaping fiscal policy effectiveness, shareholder satisfaction, and overall financial health. The aim of this study is to explore the relationships between the bank value, tax avoidance and profitability aiming to clarify their interactions and their impact on the Jrdanian banks. Ordinary Least Squares regression analysis is employed using a mixed-methods approach, including quantitative regression analysis and qualitative assessments. The study results reveal a significant direct link between bank tax avoidance and profitability. The increase in Return on Assets is associated with a substantial increase in tax avoidance. In the expanded model, bank value and size did not exhibit statistically significant incremental information over profitability in explaining tax avoidance. Profitability emerges as a dominant factor, overshadowing the potential impact of size and value. The results underscore profitability as a key driver in bank tax strategies, highlighting a potential area for regulatory scrutiny and strategic realignment. In conclusion, the study underscores the pivotal influence of bank profitability on tax avoidance strategies. Policymakers, practitioners, and researchers are encouraged to recognize the prominence of profitability in formulating tax strategies.

The relationship between bank performance and bank value is a crucial area of study, particularly in the context of emerging economies like Jordan. This study aims to investigate the moderating effect of bank performance on bank value, providing insight into how performance metrics influence overall valuation. The study employs a comprehensive methodological approach, utilizing panel data regression analysis to examine data from a sample of Jordanian banks over the period from 2014 to 2022. Key performance indicators such as Tobin’s Q, accounting conservatism, debt ratio, current ratio (CR), return on assets (ROA), and asset turnover are factors that influence bank value in the Jordanian market. The results reveal that bank performance significantly moderates the relationship between bank-specific factors and bank value. Specifically, the study finds that return on assets has a positive and statistically significant effect on bank value. The analysis reveals a significant positive correlation between bank value and profitability, as evidenced by a moderate positive correlation coefficient (0.26) between Tobin’s Q and ROA. However, weak or non-significant correlations are observed between bank value and accounting conservatism, debt ratio, and asset turnover.

This study explores the relevance of corporate governance mechanisms in determining audit quality, with a specific focus on the moderating role of firm performance in the Jordanian industrial sector. Audit quality is essential for ensuring transparency and accountability in financial reporting, making this analysis highly relevant for stakeholders aiming to strengthen corporate governance. The study sample included 64 manufacturing companies listed on the Amman Stock Exchange for the study period (2014–2022), with a total of 474 firm-year observations. The regression analysis is used to investigate the study hypotheses, including the key variables related to corporate governance, board performance, and audit quality. The findings show that company size has a significant positive effect on audit quality. There is no significant impact of CEO duality, independent directors, and ownership concentration on audit quality within the Jordanian industrial sector. The R² value of 0.067 indicates that approximately 6.7% of the variance in audit quality is explained by the study variables, while the F-value of 6.633, with a significance level of 0.00, suggests that the overall model is statistically significant, even though the explanatory power is relatively low. The study shows that company size is important to improve audit quality; other governance mechanisms may not have the same impact in the Jordanian industrial sector.

The objective of this study is to examine the relationship between corporate governance and intellectual capital within Jordanian manufacturing firms. This study used a sample of Jordanian manufacturing firms and applied regression analysis to test the effects of board size, executive director duality, percentage of independent directors, and ownership concentration on intelligence capital performance. Thus, 64 Jordanian listed manufacturing firms represent the study sample for the study period (2014–2022). The study employs advanced statistical methods to evaluate how these governance mechanisms affect intellectual capital, including human, structural, and relational capital. The study results indicate that the board size and CEO duality had no significant impact on intellectual capital performance. A positive significant determinant is the firm performance measured by earnings per share with a coefficient estimate of 6.331 at p-value <0.0. The significant positive effect of firm performance on intellectual capital performance indicates that financial health is an important driver of intellectual capital utilization. Good firms are likely to have more resources to invest in human capital, technology, and innovation, which are necessary components of intellectual capital. Future research should continue to explore these dynamics across different contexts to inform more effective governance and management practices.

Tax avoidance and capital expenditure are critical financial strategies employed by banks to enhance profitability. Understanding their impact on bank financial performance is essential for policymakers and bank managers seeking to optimize financial strategies. This study is aimed to investigate the influence of tax avoidance (TAV) and capital expenditure on the financial performance of Jordanian banks, while exploring the moderating effect of firm size. Using regression analysis, the relationships between tax avoidance, capital expenditure, bank size, and bank financial performance were investigated. Financial data from Jordanian banks were utilized over a specified period. The study results refer that tax avoidance has a positive correlation with ROA (the correlation = 31.7%) and ROE (the correlation = 30.2%). The results reveal that tax avoidance significantly impacts bank financial performance, with banks employing tax avoidance strategies exhibiting higher returns on assets and equity. However, capital expenditure does not demonstrate a significant association with bank financial performance. Additionally, firm size does not moderate the link between TAV, capital expenditure, and bank financial performance. The non-significant impact of capital expenditure underscores the need for banks to explore alternative avenues for improving financial performance. These findings provide a valuable insight for policymakers and bank managers in devising effective financial strategies to optimize bank performance in the Jordanian context.

This study aimed at analyzing the effect of sales promotion and advertising expenses on sales performance, considering firm size as a likely moderating variable.
This research conducted regression analyses on 474 Jordanian companies based on the firm’s advertising expenditure, gross margin, firm size, and sales performance. It tested two models: first, direct impact of advertising expenses on sales performance, and, second, firm size affecting the relationship between advertising expenses and sales performance.
The findings show that advertising and sales promotion expenses do not have a significant effect on sales performance. Besides, firm size did not moderate this relationship, as referred by a non-significant t-value of –1.459 and a p-value of 0.145. The models explained only 4.1% and 0.5% of the variance in sales performance, respectively, suggesting that other factors play a more significant role.
These results suggest that Jordanian firms have to reevaluate their advertising strategies and consider alternative approaches to enhance sales. The research contributes to more understanding of the limited role of advertising in sales performance within the Jordanian market.

Acknowledgement
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU242402].

The growing need to comprehend how dividend policy affects bank size, particularly in emerging markets like Jordan, makes this study relevant. Bank size, often measured by total assets, is a key indicator of financial strength and stability. This study aims to examine the relationship between various measures of dividend policy – dividend per share, dividend yield, and dividend per share to earnings per share ratio – and bank size in Jordanian banks, using earnings per share as a control variable.
The study employs ordinary least squares regression analysis to investigate the relationship between these variables over a sample of Jordanian banks. Three regression models were constructed to evaluate the impact of each dividend measure on bank size. The results indicate a significant positive relationship between dividend per share and bank size, and between the dividends per share to earnings per share ratio and bank size. The results show that approximately 43.9% of the variance in bank size is explained by the Dividends per share and Earnings per share, and a significant positive correlation is observed between total assets (bank size) and dividend per share, with a coefficient of 53%. Dividend yield, however, showed no significant impact on bank size.
The results support that Jordanian banks with a sound dividend policy on dividend per share and its continuity with earnings exhibit higher asset growth. In this respect, bank growth appears to be highly dependent on a prudent dividend policy even from an emerging markets perspective.

The impact of advertising and sales promotion on firm value and sales performance within the Jordanian manufacturing sector was examined, recognizing the significant role of advertising in enhancing competitive market outcomes. The study aimed to investigate the effect of advertising and sales promotion on firm value within the manufacturing Jordanian firms that holds a benefit for deciphering several challenges and opportunities that firms face within an emerging market context. Data from 64 Jordanian manufacturing firms listed on Amman Stock Exchange between 2014 and 2022 were analyzed. Regression analysis was applied across two models: one focused on the relationship between advertising expenditures and firm value, while the other assessed sales performance. Firm size and return on equity served as control variables across both models.
The results revealed that advertising and sales promotion expenses had a significant and positive effect on both firm value and sales performance. Specifically, advertising’s impact on firm value was characterized by a coefficient of 0.107 and a t-value of 3.640, while its effect on sales performance yielded a coefficient of 0.321 and a t-value of 9.372, both with p-values of 0.00, highlighting a strong statistical significance. Additionally, firm size demonstrated a robust positive effect on both outcomes, underscoring its role as a critical control factor. Return on equity, however, did not yield a significant effect. These findings underscore the importance of advertising as a driver of firm growth and market position, particularly in larger firms. Investment in advertising appears to foster sustainable value and performance enhancements, offering firms in competitive sectors a strategic path for growth.

Acknowledgment
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU250963].

This study investigates the empirical effects of implementing the Expected Credit Loss (ECL) model under IFRS 9 on capital budgeting decisions within the Jordanian banking sector. The analysis is based on a full population of all 13 Jordanian commercial banks listed on the Amman Stock Exchange from 2013 to 2023. Using panel data regression models, the study evaluates changes in three key financial ratios: Capital to Assets (CA), Equity to Assets (EA), and Loans to Assets (LA).
The findings reveal that adopting the ECL model led to a statistically significant increase in CA by 0.3% (p = 0.04), suggesting that banks have strengthened capital buffers in anticipation of higher provisioning requirements. Conversely, the EA ratio declined sharply by 1.1% (p < 0.01), indicating equity reallocation to absorb credit risks. Most notably, the LA ratio fell by 3% (p = 0.006), highlighting a more conservative lending approach post-ECL implementation. Each model exhibited strong explanatory power (R² values between 0.79 and 0.87), supporting the robustness of the results.
These outcomes confirm that IFRS 9 has triggered a structural shift in how Jordanian banks manage capital and credit risk. The study underscores the critical need for adaptable capital strategies in emerging markets, where regulatory changes like IFRS 9 can significantly reshape financial behavior and resource allocation.

This study undertakes an investigation into the nexus between board characteristics and research and development (R&D) investments within the specific context of Jordan. Employing a dataset comprising 24 small and medium enterprises (SMEs) operating in the service and manufacturing sectors and enlisted on the Amman Stock Exchange (ASE) throughout the period from 2010 to 2023, the empirical findings substantiate that the dimensions of the board, mainly board size and independence, exert a positive influence on the intensity of R&D expenditures. However, gender diversity exerts an inverse impact on R&D spending. Consequently, organizations with a tendency toward sustaining innovation endeavors are encouraged to accord heightened consideration to fostering gender diversity during the board selection process. However, CEO duality reveals an insignificant influence on R&D expenditures. To conclude, the study’s outcomes enrich the existing array of findings on the influence of women directors on board independence, particularly in R&D spending. Furthermore, the study offers policy recommendations, enhancing comprehension of the influence of women’s representation on R&D spending.

Type of the article: Research Article

Abstract
In emerging markets, understanding the dynamics of share price volatility is essential for corporate financial management and investor decision-making. The industrial sector often experiences price movements that may be influenced by companies’ financial policies. This research investigates the impact of dividend policy on share price volatility, with a focus on the moderating role of the debt ratio. The research draws on a balanced panel dataset of 64 Jordanian industrial firms listed on the Amman Stock Exchange during the period 2015–2023.
Using panel regression models, the findings reveal a statistically significant negative association between both dividend yield and payout ratio with share price volatility. Specifically, a 1% increase in dividend yield is associated with a 0.42% reduction in volatility (p < 0.01), while a 1-point increase in the payout ratio reduces volatility by approximately 0.31% (p < 0.05). In addition, the debt ratio significantly moderates these relationships, which reduces the stabilizing impact of dividends in highly leveraged firms. The high interaction term between dividend yield and debt ratio was confirmed by the positive interaction term between dividend yield and debt ratio. These findings highlight the importance of balanced dividend and leverage strategies in reducing stock market risk, which may improve market stability.

Acknowledgment(s)
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant No. KFU253003].

Type of the article: Research Article

Abstract
This paper examines the influence of reinsurance strategies and insurance liabilities on the performance and market valuation of Jordanian insurance firms. Using panel data from 2010 to 2023 and employing fixed-effects regression and mediation analysis, we test whether Excess Loss Installments (ELI) mediate these relationships. Based on a balanced panel of 16 listed Jordanian insurers over the period 2010–2023, the study applies SPSS, EViews, and SmartPLS to conduct fixed-effects regression and mediation analysis. The findings reveal that a higher reinsurers’ share is significantly associated with lower return on assets (ROA) (β = –0.18, p < 0.05), suggesting that excessive risk cession may erode underwriting profitability. In contrast, insurance contract liabilities have a strong positive impact on ROA (β = 0.29, p < 0.01) and firm value measured by Tobin’s Q (β = 0.32, p < 0.01), indicating that prudent technical reserve accumulation enhances financial strength and investor perception. Correlation analysis further revealed a negative association between reinsurance share and ROA (r = –0.21), while liabilities showed a moderate positive correlation with Tobin’s Q (r = 0.36). Mediation analysis showed that ELI does not play a statistically significant mediating role in the relationship between the main variables. In some models, ELI even had a minor negative indirect effect on firm value.
These findings emphasize the importance of optimizing reinsurance structures and liability management. For Jordanian insurers, effective risk transfer must be balanced against profitability goals. Regulators and firm managers should revisit the strategic use of advanced mechanisms like ELI to reduce inefficiencies and strengthen financial outcomes.

Acknowledgment(s)
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU253235].

Type of the article: Research Article

Abstract
In recent years, concerns over brand sustainability have gained attention in industrial markets, where financial decision-making and governance structures often prioritize operational efficiency over intangible assets. As industrial firms navigate competitive pressures and dynamic economic conditions, understanding the drivers of brand value erosion has become increasingly relevant. This study investigates whether sales growth, liquidity, and corporate governance influence brand decline in industrial firms listed on the Amman Stock Exchange in Jordan.
The analysis uses panel data covering the years 2014 to 2023, with a focus on variables extracted from audited financial statements. Brand decline is measured using operating margin as a financial proxy, while corporate governance is represented by board size and the number of independent directors. Liquidity is assessed through the current ratio, and sales growth is calculated annually.
The results reveal that liquidity has a statistically significant and positive effect on brand decline (coefficient = 0.071, p = 0.003), explaining approximately 2.4% of the variance. Corporate governance factors are jointly significant (F = 6.51, p = 0.002), accounting for 6.2% of brand decline variation, although individual components – board size and board independence – do not retain significance when entered together due to multicollinearity. Sales growth shows no significant effect on brand decline (p = 0.841).
These findings suggest that excess liquidity and governance structure can influence brand outcomes, while sales growth alone does not safeguard against brand erosion. Industrial firms must align financial and governance strategies with long-term brand management priorities.

Acknowledgment(s)
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU253311]. 

Type of the article: Research Article

Abstract
This study examines the relationship between governance quality, leverage, and firm performance and financial distress in Jordanian industrial companies listed on the Amman Stock Exchange (ASE). The industrial sector was chosen for this study due to its capital-intensive nature, reliance on external funding, and ongoing operational and market challenges in Jordan. The sample consists of 474 observations from 2014 to 2022. The quality of governance is represented by board size and board independence, leverage is represented by the debt-to-assets ratio, and firm performance is represented by gross margin. For financial distress, the integrated logit model indicates that board size is not statistically significant (coefficient = 0.078, p = 0.361), and the board independence is also not statistically significant (coefficient = 2.341, p = 0.076). Leverage, on the other hand, has a positive and significant association with financial distress (coefficient = 3.560, p = 0.001), while gross margin is negatively and significantly associated with financial distress (coefficient = –9.614, p < 0.001). The results suggest that financial distress for Jordanian industrial firms is primarily attributed to financing pressure and operating performance, and that the governance proxies used in this study do not adequately explain financial distress.

Acknowledgment
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant No. KFU263483].

Type of the article: Research Article

Abstract
Cash flow volatility is an important source of financial uncertainty because unstable operating cash flows may weaken firms’ ability to meet obligations, sustain investment, and preserve financial flexibility. This issue is particularly relevant in emerging markets, where firms often face financing constraints and sectoral structure may shape financial stability differently. This study examines the relationship between cash flow volatility and financial stability in Jordanian listed firms and investigates whether the insurance sector responds differently to operating cash flow uncertainty compared with other non-financial firms. Financial stability is measured using the Z-score, while cash flow volatility is calculated as the rolling standard deviation of operating cash flow scaled by average total assets. The analysis uses panel data for Jordanian listed firms over 2014–2024. A three-year rolling window is applied in the baseline model, while a five-year rolling window is used as a robustness check. The regression model includes an interaction term between cash flow volatility and an insurance-sector dummy, along with firm size, leverage, firm age, and sales growth as control variables. The results indicate statistically weak evidence that the Z-score is negatively associated with cash flow volatility, albeit in a directionally weak one. But this is not statistically significant in the baseline fixed-effects model. Furthermore, the interaction between cash flow volatility and the insurance sector dummy is not statistically significant and has a different sign in one robustness specification. The study therefore does not confirm that insurance firms are structurally less sensitive to cash flow volatility. Leverage remains the most robust determinant of lower financial stability.

Acknowledgment
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant No. KFU263523].

Type of the article: Research Article

Abstract
In the age of the knowledge economy, intellectual capital has become a key factor in the success of business organizations, especially in emerging countries. This study examines the relevance of intangible assets to firm development in Jordan’s industrial sector. The paper attempts to estimate the effect of intellectual capital on the growth of Jordanian industrial firms under the Value-Added Intellectual Coefficient (VAIC) model. The study used panel data on 64 industrial companies listed on the Amman Stock Exchange for the period 2014–2023. Intellectual capital efficiency is measured as VAIC and the components of intellectual capital efficiency (human, structural, and capital employed efficiencies). A panel regression model (fixed-effects, selected by the Hausman test) is estimated, and apart from the independent variable, firm size and liquidity are controlled. The study found a significant positive effect of intellectual capital efficiency on firm growth; that is, firms with a higher VAIC tend to have a higher annual growth. Quantitatively, every 1-point increase in VAIC is estimated to be associated with an increase in entity growth (on average) of several percentage points each year. Amongst the VAIC components, human capital efficiency stands out as the best contributor to growth (p < 0.01), whereas efficiency of the structural and capital employed contributes weakly and has statistically insignificant effects. The results confirm that boosting intellectual resources is the driving force behind superior growth for industrial firms. This emphasizes the need to invest in developing human capital and knowledge assets to maintain corporate growth in the Jordanian industrial sector.

Acknowledgment
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant No. KFU262433]. 

Type of the article: Research Article

Abstract
Environmental, social, and governance disclosure is increasingly used as a strategic communication tool, yet its immediate marketing consequences remain unclear in emerging markets. The study evaluates the marketing implications of environmental, social and governance (ESG) disclosure by testing the relationship between the disclosure and value based competitive advantage through its impact on sales growth. A total of 30 Jordanian industrial firms were selected during the time frame (2019-2023) for analysis, yielding 150 firm-year data. ESG disclosure is computed as the arithmetic mean of the disclosure ratios of environmental, social and governance data, and value-based competitive advantage is calculated as return on invested capital minus the weighted average cost of capital. The panel regression results show that ESG disclosure has a positive but statistically insignificant effect on value-based competitive advantage (coefficient = 0.340; standard error = 0.299) and sales growth (coefficient = 13.159; standard error = 23.899). After including value-based competitive advantage in the sales-growth model, its coefficient remains positive but statistically insignificant (coefficient = 29.675; standard error = 19.160). The estimated indirect effect is 10.102, with a 95% bootstrap confidence interval ranging from −8.441 to 23.688, indicating that the mediating effect is not statistically supported. The environmental, social, and governance dimensions are also statistically insignificant. The results suggest that during the period of study this ESG disclosure was not associated with an immediate increase in sales via the proposed value-based channel. The study makes a contribution by exploring a marketing-oriented ESG pathway in an emerging industrial market, and by differentiating between the anticipated strategic gains of sustainability disclosure and the actual observed market impacts of ESG disclosure.