The relationship between Financial Flexibility, Investment Ability, CashFlows, and Sales Growth: Evidence from Jordan

Main Article Content

Musa Abdel Latif Ibrahim Al Nawaiseh


The study aims at testing the relationships between financial flexibility, investment activities, cash flows and sales growth in 41 Jordanian industrial companies registered in the Amman Stock Exchange (ASE). The financial statements of these companies were obtained from their published financial statements, covering the period during (2010-2019). In the study descriptive statistics was used to describe the data, and correlation and regression tests to verify the hypotheses of the study. The research shows that there are a negative and statistically significant relationshipsbetween financial flexibility, investment, cash flows and sales growth. The study recommends financial managers to analyze the relationships between financial flexibility, the ability to invest, cash flows, sales growth, and the ability to borrow in owning more new assets to contribute to increasing sales growth, and thus profitability growth, which will be reflected in increasing job opportunities and reducing unemployment.

Article Details