The Impact of Working Capital Management on the Financial Performance of Jordanian Trading Companies Listed on the Amman Stock Exchange
摘要
The aim of this study is to determine the impact of working capital management on the financial results of Jordanian commercial companies that were listed on the Amman Stock Exchange (ASE) in 2016–2020. The study covered 9 commercial law companies listed on the ASE, which is the total number of companies listed on the ASE. The study used analytical techniques and appropriate statistical tests, adapting a descriptive-analytical approach to examining the impact of working capital management, appearing in its independent variables (average inventory period, average settlement period and average receivable period, and the size of the enterprise, and the liquidity ratio), on financial performance, appearing in their independent variables (return on assets and net profit margin) of Jordanian trading companies listed on the ASE. The findings reveal significant impacts of the average accounts payable period and company size on financial performance, specifically in terms of return on assets. Based on these results, recommendations include enhancing credit policies and fostering stronger relationships with suppliers to secure favorable credit terms for purchased goods.