Ahmed Al-Omush

Research on the relationship between digitalization and firm performance has grown exponentially over the past decade. However, most studies in this area have concentrated on large firms, focusing on IT capabilities in developed markets. The exploration of how digitalization drives sustainable competitive performance in emerging SMEs remains a largely uncharted territory. Specifically, the mechanisms through which digital strategy enhances digital capability and, in turn, leads to sustainable competitive performance in manufacturing SMEs, have received limited attention. To bridge this gap and contribute to the literature, we conducted a survey involving 376 manufacturing SMEs and employed SPSS.25 and AMOS.24 for data analysis. Our results indicate that digital strategy positively influences the sustainable competitive performance of manufacturing SMEs, with this relationship being partially mediated by digital capability. Additionally, we found that digital culture plays a reinforcing role in the connection between digital strategy and digital capability. This study contributes to the literature on dynamic capability by highlighting the significance of digital strategy and digital culture as antecedents to sustainable competitive performance, with digital capability acting as an intervening variable for manufacturing SMEs. The findings show that SMEs should promote digital culture and strategies that in turn enhance their digital capability and sustainable competitive performance in the dynamic markets.

The study aims to investigate the effect of Corporate Sustainability Performance (CSP) on profitability by examining the moderating role of liquidity and stock price volatility in the Jordanian industrial sector. The sample under study contains 56 Jordanian industrial firms. The study developed an empirical multivariate panel data model to analyze the impact of sustainability (environmental, social and governance) on firm profitability. Further, 38 criteria were utilized in the study to measure CSP to understand whether firms ranked high on sustainability parameters perform better than low-ranked firms. The study reveals a significant positive relationship between CSP and profitability; liquidity and stock price volatility also moderate CSP’s effect on the profitability of industrial companies listed on the ASE. Empirical evidence suggests that companies in Jordan should focus on improving CSP activities; to enhance financial performance. The findings could be helpful to investors, senior managers in Jordanian industrial firms, and legislators in Jordan concerning decisions about how to enhance the quality of corporate sustainability and increase the possibility of maximizing the company’s profitability. Our methodology and evaluation of corporate sustainability in this context may also be helpful to other researchers on corporate sustainability in developing economies.

Purpose: This study investigates the nature of the association between profit warnings and stock price informativeness in the context of Jordan as an emerging country. Design/methodology/approach: The authors used a large panel data set that related to stock price synchronicity and profit warnings percentages on the Amman Stock Exchange for the period spanning 2007–2018. Robust regression was used as a parametric test. This enabled us to obtain stronger results that fall in line with our prediction that a profit warning encourages firm investors to collect and process more firm-specific information than common market information. Findings: Our findings show a significant positive effect of profit warnings on the amount of firm-specific information incorporated into stock price, which means that the greater the percentage of profit warnings the more likely that more firm-specific information will be incorporated in stock price synchronicity. In addition, corporate governance characteristics (moderating variables) significantly increase the level of the relationship between profit warnings and stock price synchronicity. Practical implications: Our study results could be useful to investors, senior managers, and regulators in Jordanian firms, particularly in relation to decisions about enhancing the quality of financial statements. In addition, our results provide new evidence about the consequences of earnings announcements for information content and the informativeness of stock prices. Our methodology and evaluation of profit warnings may also demonstrate useful evidence for future researchers on profit warnings and stock price informativeness in developing economies, especially given that such evidence is scarce in developing economies. Originality/value: This research is the first study of its kind on emerging markets, particularly in the Middle East. Moreover, entering the corporate governance variables as moderating variables to the robust regression was found to be more powerful than other regressions.

This paper primarily aims to identify and evaluate the effect of Free Cash Surplus flows, Audit Quality and the ownership on Earnings Management. The study shows that financial distress has a significant impact on earnings management for samples on the Jordanian listed companies during (2003-2016). The Cash Flow Statement provides information on the flow of cash in and out of the organization over a specific period. It shows how an organization spends its money (cash outflows) as well as the source of the money (cash inflows). The Cash Flow Statement – additionally alluded to as the statement of cash flows or fund flows, which is one of the financial statements that is often utilized in the measurement of an organization’s financial performance and overall wellbeing. The study also investigates the prevalence of both accrual and base earnings management for the empirical corporate finance which claims that the better corporate governance constraints between earnings management and the relation of high free-cash -flows firms the more will the increase will be at the income management and the earnings management. Although, the research has addressed the issues of earnings management and the real activities handling; this research paper put these two issues together. The analysis provides a mixed support when using different earnings management detection models. The findings of this study could serve as a guideline to a proper and understanding of earnings management to public listed companies, regulators, and various stakeholders

Business Perspectives - scientific journals publishing