The Impact of Operating Cash Flow on Earnings Per Share (Case Study Based on Jordanian Banks)
Lecturer, Accounting Department, Faculty of Business, Applied Science Private University, MEU Research Unit, Middle East University, Amman, Jordan,
Munir Al-Hakim
Associate Professor, Banking and Finance Department, Faculty of Administrative & Financial Sciences,Petra university, Amman, Jordan
Qais Al Kilani
Full Professor, Banking and Finance Department, Faculty of Business, Applied Science Private University, MEU Research Unit, Middle East University, Amman, Jordan,
Lina Warrad
Full Professor, Accounting Department, Faculty of Business, Applied Science Private University, MEU Research Unit, Middle East University, Amman, Jordan
Majed Qabajeh
Assistant professor, Accounting Department, Faculty of Business, Applied Science Private University, MEU Research Unit, Middle East University, Amman, Jordan
Ahmad Y. A.Bani Ahmad
Associate professor,Department of Accounting and Finance, Faculty of Business, Middle East University, Applied Science Research Center, Applied Science Private University, Jordan,
Adnan qubbaja
Associate professor, Finance Department, Faculty of Administrative and Financial Sciences, Palestine Ahliya University, Palestine
Abstract
The purpose of this article is to assess if the earnings per share achieved by banking sector in Jordan influenced by operating cash flow to total assets (OTTA) and operating cash flow to total debts (OTTD) or not. In this study relied on two operating cash flow indicators (OTTA and OTTD) as independent variables and depend on earnings per share (EPS) as dependent variable. To fulfill this objective, the research population is drawn from the banking sector, with the sample comprising 15 banks operating in Jordan, all of which are listed on the Amman Stock Exchange (ASE). The data spans the years 2015 to 2019. The study's data was acquired from the financial reports submitted annually by these banks. The results show that the earnings per share achieved by banks that operated in Jordan has negatively impacted by OTTA, whereas it has positively influenced by OTTD.