The Influence of Firm Growth, Size, and Financial Leverage on Information Content of Operating Cash Flows and Accounting Earnings: Evidence from Jordan - Industrial Sector

Authors

  • Zahran M. A. Daraghma Al-Quds University

DOI:

https://doi.org/10.34120/ajas.v15i3.705

Keywords:

Information content , Amman Stock Exchange, Accounting profits, Cash flows from operating activities, Determining factors (growth and size, degree of financial leverage)

Abstract

This paper aims to provide evidence from Jordan about the influence of a firm's growth, size, and degree of financial leverage on the information content of operating cash flows and earnings, by using the Charitou et al. (2001) model. The model was implemented by selecting a sample consisting of 31 industrial corporations listed on the Amman Bourse from 1998 to 2002. The results of this study indicate that operating cash flows and earnings have information content. In addition, the information content of earnings, and operating cash flows increased for high growth firms, small size firms, and low leverage firms.

Downloads

Download data is not yet available.

Author Biography

Zahran M. A. Daraghma, Al-Quds University

Ph.D. in Accounting, Arab Academy for Banking and Financial Sciences, Amman - Jordan (2005). Full-time Assistant Professor in the Department of Accounting, Faculty of Management and Economics, Al-Quds University, Palestine - Jerusalem - Abu Dis. His research interests are market-based accounting studies, auditing, and accounting information systems.

Downloads

Published

2008

How to Cite

Daraghma, Z. M. A. (2008). The Influence of Firm Growth, Size, and Financial Leverage on Information Content of Operating Cash Flows and Accounting Earnings: Evidence from Jordan - Industrial Sector. Arab Journal of Administrative Sciences, 15(3), 375–396. https://doi.org/10.34120/ajas.v15i3.705

Issue

Vol. 15 No. 3 (2008)

Section

Accounting