Jordanian Industrial Companies Research Articles

The Practice of Enterprise Risk Management and Sustainable Performance in Jordan

The primary objective of any organization is to minimize risks and losses while optimizing values, revenues and returns. Therefore, risk management, which is often referred to as risk identification, likelihood of occurrence, and impact on the business, is essential. Recent corporate catastrophes have brought to light how inadequately corporations handle risks. In reaction to these challenges, organizations have shifted from separate and personalized procedures to a more comprehensive and integrated enterprise risk management (ERM) perspective in their risk management strategies. To address these new global sustainable challenges which include hunger, poverty, high unemployment, climate change, and related issues, businesses should place a strong priority on environmental preservation and social responsibility. Jordan is one of the countries dealing with several issues related to sustainability. The sustainable performance of Jordanian firms deserves further attention. Managers in Jordanian industrial businesses must keep a close eye on how the company's environmental environment is being improved to reduce air pollution, the usage of hazardous materials, and other difficulties. Therefore, companies in Jordan must adopt strategies that will allow them to face this issue to improve their social, environmental, and economic performance. Jordan's manufacturing and service industries should be at the forefront of a comprehensive approach to risk management and board monitoring, given the growing concerns regarding the environment, society, and economy. Since ERM is a relatively new concept, its implementation in Jordanian industrial and service companies is still in its early stages. Moreover, there is a lack of comprehensive research regarding the ERM in Jordan.

The Effect of Job Enrichment on Organizational Citizenship Behaviors in Jordanian Industrial Companies

The Effect of Job Enrichment on Organizational Citizenship Behaviors in Jordanian Industrial Companies

The impact of strategic control on improving crisis management efficiency in Jordanian industrial companies

ركزت الدراسة على بيان أثر الرقابة الإستراتيجية في تحسين كفاءة إدارة الأزمات، وبيان أثر كل من: تحديد المعايير، قياس الأداء الفعلي، تقييم الأداء الإستراتيجي، وإتخاذ الإجراءات التصحيحية في تحسين إدارة الأزمات في الشركات الصناعية الأردنية. ولتحقيق هذه الأهداف تم اعتماد المنهج الوصفي التحليلي، وتم جمع البيانات الأولية من خلال إستبانة إلكترونية وُزّعت على أفراد عينة الدراسة المكونة من المدراء العامين ونائبيهم ومدراء الدوائر ورؤساء الأقسام في الشركات الصناعية المساهمة العامة في الأردن، حيث تم توزيع (235) إستبانة، واسترداد (201) إستبانة كانت جميعها صالحة للتحليل الاحصائي. واستخدمت الدراسة أساليب الاحصاء الوصفي في تحليل البيانات، كما استخدمت تحليل الانحدار الخطي المتعدد والمتدرج لاختبار الفرضيات. وتوصلت الدراسة إلى وجود أثر دال إحصائياً للرقابة الاستراتيجية في تحسين كفاءة إدارة الأزمات في الشركات الصناعية الأردنية، ووجود وجود أثر دال إحصائياً لكل من تحديد المعايير وقياس الأداء الفعلي وتقييم الأداء الاستراتيجي وإتخاذ الإجراءات التصحيحية في تحسين كفاءة إدارة الأزمات في الشركات الصناعية الأردنية. وأوصت الدراسة بإعداد إدارة الشركات استراتيجيات واضحة لإدارة الأزمات تتضمن تحديد المخاطر المحتملة ووضع خطط لمواجهتها، واستخدام التكنولوجيا الحديثة وأنظمة مراقبة البيانات لتعزيز الرقابة الاستراتيجية وتحسين الاستجابة للأزمات.

The Impact of Financial Leverage on the Profitability of Industrial Companies In Light of the Corona Pandemic, Evidence from Emerging Economies

The present study figures out the impact degree of financial leverage, measured by the ratio of liabilities to equity, on the profitability of industrial companies in light of the Corona pandemic, measured by the ratios of the return on equity and return on assets, the study population consisted of industrial companies listed in the Amman Stock Exchange amounting to (55) companies while the study sample consist of (39) companies that have data available during the study period, The descriptive analytical approach used in this study, the statistical program (SPSS) was used to analyze the study data, the mean and standard deviation were used to describe the study data, and simple regression analysis was used to test its hypotheses, the study found that there is no statistically significant impact of the degree of financial leverage on the profitability of the industrial companies listed in the Amman Stock Exchange (ASE) as measured by the return on assets, while there is a statistically significant impact to the degree of financial leverage on the profitability of the Jordanian industrial companies listed in the Amman Stock Exchange (ASE) as measured by the return on equity. The study recommended that the Jordanian industrial companies have to find an optimal capital structure; besides studying the investment opportunities before borrowing to finance them and relying on self-financing sources in the first place.

The effect of financial reporting quality on earnings quality of industrial companies

This study investigates the relationship between financial reporting quality and earnings quality in Jordanian industrial companies. This paper used a survey-based approach, utilizing questionnaires to collect data from selected participants representing Jordanian industrial companies using SmartPLS 4. The study confirms a positive relationship between financial reporting and earnings quality in Jordanian industrial companies. Preparing accurate financial reports allows visualization of the company’s financial position and performance in accordance with accounting standards and disclosure practices. The findings offer valuable guidance to regulators, investors, and stakeholders in understanding the significance of financial reporting quality and its implications for evaluating financial performance and decision-making processes. In addition to promotes financial transparency and informed decision making in the Jordanian industrial sector. This study enhances understanding of the importance of financial reporting quality for ensuring reliable and accurate earnings information. The study’s PLS-SEM methodology also contributes to the methodological literature in this area.

The Effect of Financial Incentives for the Board of Directors on the Disclosure level of the Quantity and Coverage of Risks in Jordanian Industrial Companies

The Effect of Financial Incentives for the Board of Directors on the Disclosure level of the Quantity and Coverage of Risks in Jordanian Industrial Companies

Management accounting methods for financial decisions: Case of industrial companies in Jordan

Management accounting plays a critical role in decision making since it supplies accounting information that would be helpful to managers in making critical decisions for an organization. In light of this assertion, the aim of the study was to determine how the listed Jordanian industrial organizations used management accounting techniques to make financial decisions. The study employed the descriptive research design and used primary data to collect the information on the related objectives of the study. The target population for this study was the employees of industrial enterprises in Jordan. Specifically, the employees forming the part of the sample were the managers and non-managers (excluding lower-level staff) working in industrial companies of Jordan. The industrial firms from where the employees were chosen included the industrial firms listed on the Amman Stock Exchange. The sample size for the study has been 371 employees, selected based on the Krejcie and Morgan rule. The study’s findings supported the notion that budgeting, financial ratio analysis and activity-based costing are the most widely used management accounting techniques in these organizations. The results show that employees differ in their perception on the role of management accounting techniques in financial decision making. Specifically, the results of the study confirm the significant p-value (0.000) for t-statistics and f-value, thereby confirming that employees differ in their perception regarding the role of management accounting in financial decision making based on gender, type of job and years of experience.

The Impact of the Implementation of Internal Audit Tasks According to Standard 2300 on the Efficiency of the Performance of Industrial Companies Listed on Amman Stock Exchange

Purpose: To determine the impact of the implementation of internal audit tasks in according to standard 2300, with its dimensions (identifying information, analysis and evaluation, documenting information, supervising the task) on the efficiency of the performance of industrial companies listed on the Amman Stock Exchange, and to achieve the objectives of the study.
 
 Methodology: The descriptive approach was used Analytical. The study population consisted of internal auditors in industrial companies listed on the Amman Stock Exchange, which numbered (56) companies, and the study sample consisted of (160) questionnaires distributed to workers in the job of (internal auditor, director of internal audit and head of the internal audit department) in the Jordanian industrial companies listed on the Amman Stock Exchange, from which (124) questionnaires were retrieved. In addition to (2) an incomplete questionnaire, all the information contained therein. Thus, the study sample consisted of 122 individuals. To test the hypotheses of the study, the researcher used the SPSS program ، through the simple regression test and the Three-way Anova test. The study reached results there is a statistically significant relationship to determine the information, analysis and evaluation on the performance efficiency of the industrial companies listed on the Amman Stock Exchange. 
 
 Findings: While showed, there is no statistically significant relationship to document information and supervise the task on the performance efficiency of industrial companies listed on the Amman Stock Exchange.
 
 Further research: In view of the results, the study recommended the need to support the internal audit department in Jordanian industrial companies.and More studies are needed.

The Effect of Sustainability Disclosure According to the GRI-G4 Standards on Firm Value

The study aimed to investigate the effect of sustainability disclosure according to the GRI-G4 standards on firm value, by following the analytical descriptive approach. The study sample included (33) Jordanian industrial companies listed on the Amman Stock Exchange during the period (2018-2021). The study used the method of content analysis for the annual reports of the sample of industrial companies for collecting data related to the disclosure items for the economic side, the environmental side, and the social side. Also, the firm value was measured by the Tobin’s Q. The study concluded that there is a statistically significant effect of the sustainability disclosure according to the GRI-G4 standards and its dimensions on the firm value. The study recommended that all industrial companies must to sustainability disclose in accordance to the GRI-G4 standards, and adopting activities and practices that contribute to increasing and maximizing the value of the company.

THE EFFECT OF WORKING CAPITAL EFFICIENCY ON EARNING MANAGEMENT IN JORDANIAN INDUSTRIAL COMPANIES LISTED ON THE AMMAN STOCK EXCHANGE

This study aimed to find out the effect of working capital efficiency on earning management in Jordan. The study relied on the descriptive analytical approach. Where the study population consists of all Jordanian industrial companies listed on the Amman Stock Exchange for the period 2013-2022, which are 33 listed companies, and the collected data were analyzed through the STATA program. The results indicate that there is a significant effect between the working capital efficiency (Average Receivable Collection Period, Average Payable Period, Average Inventory Holding Period, Average Cash Cycle Period, Net Trading Cycle) on the earnings management of industrial companies listed on the Amman stock exchange. The findings of the study contribute to the literature on working capital management and earnings management and have important implications for the financial performance of firms in Jordan. Overall, working capital management is a crucial aspect of financial management for manufacturing firms in Jordan. Effective working capital management can help firms maintain their operations, manage their cash flow, and improve their financial performance, while also contributing to the development of the manufacturing sector and the economy as a whole.

The Impact of Environmental Disclosure on Market Performance: An Empirical Study of Jordanian Listed Industrial Companies

The world is currently grappling with the daunting environmental issue of global warming and climate change, which pose a significant threat to the future of our planet from various perspectives. Increased public awareness and concern over the detrimental effects of these problems have resulted in the creation of new environmental regulations. One important aspect of corporate governance that contributes to addressing this challenge is environmental accounting. By embracing the potential of environmental accounting, businesses can work towards achieving sustainable growth and development. The study aimed to investigate the impact of environmental disclosure on market performance in Jordanian industrial companies listed on the Amman Stock Exchange. The descriptive analytical method was relied on to achieve the study’s objectives. The data was collected through annual reports in addition to the financial statements of a group of industrial companies listed on the Amman Stock Exchange, which met the requirements of environmental disclosure, which were (43) industrial companies during the period (2017-2021). The special data in the study sample were analyzed using the statistical analysis software E-views. The arithmetic means standard deviation, and each of the upper and lower values was extracted in addition to using multiple linear regression analysis. The study concluded that there is a statistically significant effect of the environmental disclosure in both the market value and the stock turnover rate, in addition to Tobin’s Q ratio in the industrial companies surveyed. According to the findings, industrial companies in Jordan should be encouraged to become more interested in and open about their environmental activities. This is because being open about these activities helps them get more investments, start their financing and investment operations, increase their market value, and increase their investment market share.

Impact of Balanced Scorecard on Value Chain and Financial Performance in the Jordanian Industrial Companies

Impact of Balanced Scorecard on Value Chain and Financial Performance in the Jordanian Industrial Companies

A Study of Management Accounting Practices and Financial Performance in Industrial Companies in Jordan

With advancement in technology and changing business environment, it is important to assess the effect of adoption of management accounting practices on the financial performance in companies. Hence, the purpose of the study was to assess the effect of Management Accounting Practices (MAPs) on the financial performance in industrial companies of Jordan. The study considered MAPs (costing practices, budgeting practices, decision-making practices, performance evaluation practices and strategic analysis) as the independent variables and financial performance (Return on Assets - ROA) as the dependent variable. Data collection was done through primary sources where 142 responses were collected using structured questionnaire. Multiple regression test was used to test the hypothesis which found that there is a statistically significant effect of adoption of management accounting practices on the financial performance in Jordanian industrial companies.

The Impact of Applying the Target Cost Approach on Products' Structure (Products Pricing, Development and Quality)

Purpose: This study aimed to examine the effect of applying the target cost approach on product structure in industrial public shareholding companies in Jordan. Theoretical framework: The purpose of applying target cost approach on products' structure (products pricing, development and quality) and it is ability to reduce costs and improvements that can be obtained in the process of applying target cost approach. Numerous research related to applying target cost approach have been conducted, with the majority focusing on large companies. However, Jordanian industrial companies have limitations compared to large companies. Repairability is considered for cost optimization. Design/methodology/approach: The study uses the analytical approach through the study tool (Questionnaire). The study population consisted of Jordanian industrial companies, which reached (56) companies in 2022, according to the monthly statistical periodical of the Amman Stock Exchange (ASE). A sample of (42) companies was selected, and the questionnaire was distributed to (The Financial Manager, Production Manager, Sales Manager, and Accountant) for each company. The number of questionnaires approved for statistical analysis was (130), representing (77%) of the distributed questionnaires. This study uses different tests to analyze the data and extract results related to the statistical methods, i.e., the descriptive statistic, Cronbach's Alpha Equation, Pearson's Correlation Coefficient, and Simple Linear Regression Analysis. Findings: The study found that there is a strong relationship between the target cost approach and the product structure, with the existence of a statistically-significant effect, whereas the correlation coefficient value reached (0.808); thus, the target cost approach contributes to developing products and improving profitability through focusing on the analysis process of the possibilities of product success, before allocating the productive resources thereof. It has also contributed to reducing the cost during the production stages from its beginning while maintaining the products' quality, and it also leads to increasing sales volume through the pricing mechanism based on the target cost. Through the answers of the study sample individuals, it is pointed out that the arithmetic mean of the target cost approach is high, as it reached (3.77) and the standard deviation is (0.57), as well as the arithmetic means of the products' structure is high, as the pricing element came in the first class, with arithmetic means of (3.86) and standard deviation of (0.51), then the development element came in the second class, with arithmetic means of (3.78) and standard deviation of (0.58), whereas the quality element came in the third-class, with arithmetic means of (3.75) and standard deviation of (0.53). The results of the regression analysis also indicate that there is a statistically significant effect of the target cost approach on the quality of products, with (R²) (46.3%) which represents the proportion of explanation in the variance of the dependent variable. The findings of the study highlighted that there is a statistically-significant effect of the target cost approach in product development with (R²) with (37.5%) which indicates that the target cost explains (37.5%) of the difference in the product development. The results also indicate that there is a statistically significant effect of the target cost approach in product pricing with R) value indicating a high-strength correlation between the target cost approach and product pricing, which is (0.812). Research Practical implications: It is necessary to pay attention to qualifying workers by developing programs that deal profoundly with the approachs and modern systems of costs, such as the target cost system and the value chain as these approachs and accounting systems will be intensively adopted in the future for their outstanding role in developing product performance, Pricing and improving its quality. Originality/value: The study recommended that it is necessary to develop successful products and price them based on the target cost by balancing the company's ability and customers' needs, as well as using methods that lead to consistency and harmony between products' quality and customers' expectations. The study also recommended focusing on qualifying workers by developing programs that profoundly tackle the approaches and modern systems of costs, such as the target costing system

Application of Using the Activity-Based Costing System on Product Development in Jordan’s Manufacturing Listed Manufacturing Firms

Purpose: The aim of this research was to examine how the Activity-Based Costing system (ABC) affected product development in Jordanian manufacturing public shareholding companies. Design/methodology/approach: According to the monthly statistical bulletin of the Amman Stock Exchange and the Securities Depository Center, the study population for the year 2022 included (56) Jordanian industrial firms. The questionnaire was distributed to the financial manager, production manager, sales manager, and accountant. In comparison to the total number of circulated questionnaires, (132) were authorized for statistical analysis. Regression analysis and correlation were used to analyze the data and extract results related to the statistical methods used in the study, namely, descriptive statistics, Cronbach's alpha equation, Pearson's correlation coefficient, and linear regression analysis. Findings: The study revealed that there is a connection between the ABC system and product development in Jordanian industrial companies, where this approach contributes to the improvement and development of products by tracking the stages of production since its inception and concentrating on activities that add value to the company and eliminating activities that do not add any value, naturally improving the competitive position of the company. Research Practical implications: Hence, one of this study's main findings suggests developing strategies for methodically and practically gathering comprehensive data on the company's operations. The study advised that Jordan's industrial public shareholding companies stay up with recent advancements in the field of activity-based costing. Originality/value: This study recommends that for the company to stay up with the acceleration in advancement in the areas of activity costs and the employment of latent capabilities for the company's advantage, the study also recommended that the company train its employees to develop their capabilities to serve its strategies. As the findings also reveal that most of the manufacturing firms in Jordan have the infrastructure to adopt and implement the ABC system.

The Effect of Corporate Social Responsibility on Competitive Advantage through Organizational Learning in the Jordanian Industrial Sector

This study not only attempts to stress the direct effect of corporate social responsibility on competitive advantage but also the mediating effect of organizational learning at Jordanian industrial companies. In order to evaluate the relationships, the researcher uses a quantitative research method in which a questionnaire is designed based on previous studies. The questionnaire included 38 Likert scale items distributed to 325 top and middle managers working at Jordanian industrial companies registered on ASE. Data is analyzed using SPSS. The results show that only two dimensions of corporate social responsibility (public, customer, and employee orientation, and fair operation) significantly impact competitive advantage. Also, it has been found that organizational learning mediates the impact of two dimensions of corporate social responsibility (public, customer, and employee orientation, and fair operation) on competitive advantage. The originality of this study stems from the mediating impact of organizational learning on the relationship between corporate social responsibility and competitive advantage, particularly in the manufacturing industry of Jordan. The researcher made some recommendations to management in which using organizational learning capabilities can explain the influence of corporate social responsibility on taking advantage of corporate resources.

The Impact of Operating and financial leverages on the Financial Performance of the Jordanian Industrial Companies

The Impact of Operating and financial leverages on the Financial Performance of the Jordanian Industrial Companies

The Impact of Lean Thinking on Strategic Planning in Industrial Companies in Jordan from the Upper and Middle Management: A Perspective Study

The Impact of Lean Thinking on Strategic Planning in Industrial Companies in Jordan from the Upper and Middle Management: A Perspective Study

The Impact of Activity-Based Costing Systems on Cost Reduction During Pandemic. An Example of an Industrial Company Listed on the Amman Stock Exchange

Objective: The purpose of this study is to examine the impact of an activity-based costing system on cost reduction during the COVID-19 pandemic. An example of ASE. Theoretical framework: a 42-item work-related cost scale and a 10-item cost reduction scale were applied to a random sample of 261 workers working in ASE. Design/methodology/approach: The results show a positive impact and correlation between an activity-based costing system and cost reductions during the COVID-19 pandemic. Results and recommendations: The study recommends enhancing the professional qualifications of financial managers, heads of accounting departments and accountants in Jordanian industrial companies by attending various professional courses.

Factors Affecting Risk Management in Industrial Companies in Jordan

This study aims to identify and rank the critical factors affecting risk management from the perspective of top and Lower Management in Jordanian industrial companies. Based on a rigorous literature review, critical factors affecting risk management are factors related to (1) flexibility and adaptation in the economic environment; (2) company characteristics; (3) external audit quality; (4) government rules and regulations; (5) top management and the board of directors; (6) organizational structure; (7) internal audit effectiveness; (8) trust; (9) human resources efficiency and training (10); communications (11); information technology (12); and the company’s culture. Quantitative research methods were used. A questionnaire was developed and distributed to a random sample of senior managers of industrial companies in Jordan. Kendall and Mann–Whitney tests, RII, and EFA were used to analyze the acquired data. The results show that all discussed factors have an effect on risk management, and there is no difference between top and Lower Management’s opinions regarding the ranking of the importance of those factors on risk management. This study provides an original perspective on the concept of risk management and the factors that impact it. These findings have important implications for Jordanian industrial companies’ decision makers. Companies should apply the results to their strategies and policies to reduce risks.