Does cultural economics affect country’s competitiveness?

Abstract

this study analyses the influence of FCF on the financial performance of Jordanian Firms listed on the Amman Stock Exchange for a period of five years (2017–2022). Descriptive statistics, along with correlation analysis, were used to investigate relationships among FCF, ROA, ROE, and NPM, and multiple regression models were also used to test research hypotheses. Results show that an increase in FCF has a highly positive relationship with financial performance, and indeed better financial performance can be expected when the FCF is increased. The results indicate that FCF noticeably predicts ROA and ROE, and the effect on ROE is especially significant. The relationship with NPM is positive but weaker, which indicates that surplus cash can still drive margin increase. The work confirms that FCF is an important performance factor of EFAC, but it also indicates that strategic control over cash mobilization is essential. While some research indicates that oversized FCF can enhance value, like intense R&D investment, others caution that unrestricted FCF might be wasted which calls for the need of exerting cash management in optimizing long term value.

Keyword : Free Cash Flow; Financial Performance; ROA; ROE; NPM; Jordanian Firms