Effect of Cash Flows on the Market Value of Jordanian Industrial Companies Stocks.

Abstract

The current study aims to assess the effect of cash flows of activities (operational, investment and financial) on market values in industrial companies stocks. The study adopted secondary sources for data collection from the annual reports of Jordanian industrial companies (52 companies) for the period 2007-2016. Furthermore, the study followed the descriptive analytical approach for data analysis in addition to utilizing the Gretle Stata model to test hypotheses. Results indicated a positive statistically significant effect for each of operational and investment activities on market value of industrial companies, while there was a negative relationship between financial activities and market value of industrial companies.