The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange

The purpose of this study is to examine how the COVID-19 epidemic has affected the working capital management practices of Amman Stock Exchange (ASE) companies. From 2012 to 2021, 101 firms were studied in the financial sector. The data was also examined using a Multiple Regression Model in the stud...

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Main Authors: Yaser Mohd Hamshari, Mohammad Ahmad Alqam, Haitham Yousef Ali
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2157541
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author Yaser Mohd Hamshari
Mohammad Ahmad Alqam
Haitham Yousef Ali
author_facet Yaser Mohd Hamshari
Mohammad Ahmad Alqam
Haitham Yousef Ali
author_sort Yaser Mohd Hamshari
collection DOAJ
description The purpose of this study is to examine how the COVID-19 epidemic has affected the working capital management practices of Amman Stock Exchange (ASE) companies. From 2012 to 2021, 101 firms were studied in the financial sector. The data was also examined using a Multiple Regression Model in the study. The results revealed that Covid-19 Pandemic has significant and negative effect on working capital management. According to the results, companies tended to take a relatively conservative approach to managing their working capital. More importantly, the data demonstrated that the COVID-19 pandemic crisis drove changes in working capital management practices. Companies with a high FL, QR, and CCC have attempted to increase their client base by prolonging the average age of their accounts receivable and decreasing the turnover rate of their liabilities, respectively. Companies with a greater CCC, as well as those whose principal current assets are accounts receivable, outperformed the other working capital management strategies.
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spelling doaj-art-d7d7cd228c2548c0a3a981660b9626d32025-08-20T02:16:46ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2157541The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchangeYaser Mohd Hamshari0Mohammad Ahmad Alqam1Haitham Yousef Ali2College of Administrative and Financial Sciences Accounting Department, University of Petra- Box 961343 Amman 11196 – JordanCollege of Administrative and Financial Sciences Accounting Department, University of Petra- Box 961343 Amman 11196 – JordanCollege of Administrative and Financial Sciences Accounting Department, University of Petra- Box 961343 Amman 11196 – JordanThe purpose of this study is to examine how the COVID-19 epidemic has affected the working capital management practices of Amman Stock Exchange (ASE) companies. From 2012 to 2021, 101 firms were studied in the financial sector. The data was also examined using a Multiple Regression Model in the study. The results revealed that Covid-19 Pandemic has significant and negative effect on working capital management. According to the results, companies tended to take a relatively conservative approach to managing their working capital. More importantly, the data demonstrated that the COVID-19 pandemic crisis drove changes in working capital management practices. Companies with a high FL, QR, and CCC have attempted to increase their client base by prolonging the average age of their accounts receivable and decreasing the turnover rate of their liabilities, respectively. Companies with a greater CCC, as well as those whose principal current assets are accounts receivable, outperformed the other working capital management strategies.https://www.tandfonline.com/doi/10.1080/23322039.2022.2157541Amman Stock ExchangeCOVID-19 epidemicmultiple regression modelworking capital management
spellingShingle Yaser Mohd Hamshari
Mohammad Ahmad Alqam
Haitham Yousef Ali
The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
Cogent Economics & Finance
Amman Stock Exchange
COVID-19 epidemic
multiple regression model
working capital management
title The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
title_full The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
title_fullStr The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
title_full_unstemmed The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
title_short The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
title_sort impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
topic Amman Stock Exchange
COVID-19 epidemic
multiple regression model
working capital management
url https://www.tandfonline.com/doi/10.1080/23322039.2022.2157541
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