Factors Affecting Financial Performance on Non-Financial Companies Listed in Palestine Exchange Using Tobin's Q

Authors

  • Sami N. Abushammala University College of Applied Sciences
  • Ramez A. Bedair Al-Azhar University
  • Samah A. Alffar SAM Group

DOI:

https://doi.org/10.34120/ajas.v25i3.1017

Keywords:

Financial Performance, Factors affecting financial performance, Tobin 's Q model

Abstract

Aim of the Paper: The study aims to identify factors that affect financial performance of non-financial firms listed in Palestine Exchange using Tobin's Q model.
Study Design: The study adopted the standard analytical approach and random effect model to examine, investigate and analyze the data using statistical software E-VIEWS8.
Sample and Data: The sample consists non-financial firms listed in Palestine Exchange for the years 2010-2016, which consist of (16) firms according to Palestine Exchange documents.
Results: The results indicated that there is a positive statistical significance effect of independent variables (productivity, cash dividend ratio, cash flow ratio) on financial performance. By contrast, there is a negative impact of the independent variables (size and profitability) on financial performance.
Conclusion: The study recommended non-financial firms should increase their capacity in order to upgrade their productions, distribute cash dividends to shareholders at the end of each year, and to manage their cash flows efficiently. Also, the study recommended using the Tobin 's Q model to measure the market value of firms.

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Author Biographies

Sami N. Abushammala, University College of Applied Sciences

holds a Ph.D. in finance from the University of Science Malaysia in 2014. He works as an assistant professor of finance at the University College of Applied Sciences - Gaza, as well as a consultant to many civil society organizations and a business developer for many pioneering projects. He has research interests in the fields of: finance, analysis and financial performance, financial markets, and governance (sshammala@ucas.edu.ps)

Ramez A. Bedair, Al-Azhar University

He holds a Ph.D. in Management Information Systems from the Arab Academy for Banking and Financial Sciences, Jordan, in 2006. He works as a full-time university assistant professor at Al-Azhar University in Gaza. He holds the position of Chairman of the Quality Unit Committee at the College of Economics and Administrative Sciences. He has research interests in the areas of management information systems, financial management, administrative empowerment, knowledge management, transformational leadership, and training programs. r.bedair@alazhar.edu.ps

Samah A. Alffar, SAM Group

She received an MBA from the Faculty of Commerce at Al-Azhar University—Gaza in 2017. She currently works as a representative for SAM Group in Turkey and has research interests in finance, banking, and strategic management.

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Published

2018

How to Cite

Abushammala, S. N., Bedair, R. A., & Alffar, S. A. (2018). Factors Affecting Financial Performance on Non-Financial Companies Listed in Palestine Exchange Using Tobin’s Q . Arab Journal of Administrative Sciences, 25(3), 529–568. https://doi.org/10.34120/ajas.v25i3.1017

Issue

Vol. 25 No. 3 (2018)

Section

Finance