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The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator

Doctor of Philosophy in Accounting

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Bibliographic Details
Main Author: Yazan Salameh Mottee, Oroud
Other Authors: Md Aminul, Islam, Assoc. Prof. Dr.
Format: Thesis
Language:English
Published: Universiti Malaysia Perlis (UniMAP) 2018
Subjects:
Financial crises
Cash management
Audit trails
Online Access:http://dspace.unimap.edu.my:80/xmlui/handle/123456789/76730
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spelling my.unimap-767302022-11-08T02:45:54Z The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator Yazan Salameh Mottee, Oroud Md Aminul, Islam, Assoc. Prof. Dr. Financial crises Cash management Audit trails Doctor of Philosophy in Accounting Effect of accounting information on the share price has been having the share of attention from researchers for over six decades owing to the increasing of global financial crisis. Hence, this study attempts to contribute to literature by investigating such relationship in Jordan, a developing country. Specifically, this study investigates the relationship between the cash flow and accruals on share price of listed companies on Amman stock Exchange for the year 2002 to 2014 also the effect of financial crisis on the share price before and after 2008. The model of this study was theoretically founded on both the agency and the signaling theories. To examine the developed model, the required data were gathered from the annual reports of 236 listed firms. In analyzing the data, this study utilized the panel data methodology on 117 companies with 1521 observations. Moreover, this study used audit quality (audit firm size and audit tenure) as moderating variable. Based on the panel data results, the fixed effect model was used to examine the effect of the cash flows and accruals on the share price. The accruals and cash flows combined have significant effects on the share prices of the Jordanian companies listed on ASE and that they together explain 40.93% of the variations in these prices. In addition, the study found that the cash flows have a significant effect on the share prices of the Jordanian companies listed on ASE and that the operating cash flows (OCFs), financing cash flows (FCFs), and investment cash flows (ICFs) together explain 13.27% of the variations in these prices. Whereas the OCFs have positive effect on the share prices of these companies, the effect of FCFs is negative. On the other hand, the accruals (aggregate accruals (AGGAs), current accruals (CAs), and total accruals (TAs)) have a statistically-significant, positive effect on the share prices of the Jordanian companies listed on ASE and CAs, TAs and AGGAs, together explain 38.92% of the variations in these prices. Audit quality, whether auditor’s firm size or auditor’s tenure, has significant moderating effect on associations of the share prices with accruals and with cash flows and the 2008 financial crisis had negative effects on share prices of the Jordanian companies listed on ASE. Besides providing suggestions for future research work, this study provides deep insights into relative usefulness of cash-based and accrual-based accounting measures and assist investors, regulators, analysts, and other stakeholders in evaluating the liquidity and financial performance of Jordanian companies listed on ASE, which may result in better allocation of economic resources by enabling the investors to take informed investment decisions, thus promoting a more efficient Jordanian capital market. 2018 2022-11-08T02:45:54Z 2022-11-08T02:45:54Z Thesis http://dspace.unimap.edu.my:80/xmlui/handle/123456789/76730 en Universiti Malaysia Perlis (UniMAP) Universiti Malaysia Perlis (UniMAP) School of Business Innovation and Technopreneurship
institution Universiti Malaysia Perlis
building UniMAP Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Perlis
content_source UniMAP Library Digital Repository
url_provider http://dspace.unimap.edu.my/
language English
topic Financial crises
Cash management
Audit trails
spellingShingle Financial crises
Cash management
Audit trails
Yazan Salameh Mottee, Oroud
The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator
description Doctor of Philosophy in Accounting
author2 Md Aminul, Islam, Assoc. Prof. Dr.
author_facet Md Aminul, Islam, Assoc. Prof. Dr.
Yazan Salameh Mottee, Oroud
format Thesis
author Yazan Salameh Mottee, Oroud
author_sort Yazan Salameh Mottee, Oroud
title The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator
title_short The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator
title_full The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator
title_fullStr The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator
title_full_unstemmed The effects of cash flows and accruals on the share price in Jordan with special reference to financial crisis: audit quality as a moderator
title_sort effects of cash flows and accruals on the share price in jordan with special reference to financial crisis: audit quality as a moderator
publisher Universiti Malaysia Perlis (UniMAP)
publishDate 2018
url http://dspace.unimap.edu.my:80/xmlui/handle/123456789/76730
_version_ 1751537964378226688
score 13.211869

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