Authors : Nimer Alslehat and Munther AI-Nimer
Abstract: The study aims to examine the impact of cash flow management, namely operating, investing and financing activities on financial performance and the contribution of each of these activities to predict the financial performance of the Jordanian Insurance Companies (JICs). The population under observation consists of the JICs which includes (23) companies. The study covers the period 2009-2013 by analyzing annual reports for each company. The study indicated that net cash flows from operating activities are considered the highest compared with other activities which demonstrates that the JICs generate money from their main business and are not facing liquidity crisis. Regarding the impact of each orientation of these activities and their effect on financial performance, the study revealed that the net cash flows from the operation activities influences the return on assets. Moreover, the net cash from investing activities was found to play a significant role in the financial performance.
Nimer Alslehat and Munther AI-Nimer, 2017. Empirical Study of the Relationship between Cash Flow Management and Financial Performance of the Jordanian Insurance Companies. International Business Management, 11: 776-782.