Abstract:

The objective of this study was to investigate the influence of cash liquidity quality indicators on the long-term financial sustainability of publicly listed joint-stock industrial companies on the Amman Stock Exchange from 2014 to 2021. The study encompassed a population of 53 such companies, from which a purposive sample of 35 companies was selected based on the availability of comprehensive financial data meeting the study's variables throughout the designated period. The collected data were subjected to appropriate statistical analysis methods. The findings of the study revealed that cash liquidity quality indicators, specifically net cash flow from all activities to total assets, net cash flow from all activities to total profit, and operating net cash flow to total assets, exhibited a statistically significant impact on the sustainability of crucial indicators for these companies, including working capital, retained earnings, the market value of stocks, operating profit, and net sales. However, the study results indicated that the cash liquidity quality indicator represented by net cash flow from all activities to total equity did not affect the sustainability of operating profit and net sales indicators for these companies. Nevertheless, it did have an impact on indicators such as working capital, retained earnings, and market value of stocks, contributing to their sustainability within these companies.

Keywords:

Cash liquidity quality, financial strength, industrial companies.

How to Cite:

Abdul Razzak Alshehadeh, Ahmad Adel Jamil Abdallah, Mohammed Zakaria Soda, Haneen A Al-Khawaja and Ehab Injadat. The Impact of Cash Liquidity Quality on Financial Strength Sustainability: Evidence from Industrial Companies. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a156/