The Impact Of Asset Management Efficiency Ratios on Earnings per Share Case Study of Industrial Companies Listed on the Amman Stock Exchange from 2005 to 2019)

Abstract

This study aims to analyze the effect of the represented asset management efficiency (total asset turnover (TAT), fixed asset turnover (FAT), and working capital turnover (WCT)) on the earnings per share (EPS) of industrial companies listed on the Amman Stock Exchange (IASE) as the data were obtained from the Amman Stock Exchange (ASE) from 2005 to 2019, where the unit root test was analyzed for the time series of the study variables. Results revealed that all the variables stabilize at the first differences 1 (1), several diagnostic tests, such as variance instability, Ramsay stability, and serial correlation tests were also performed, all of which confirmed the fit and validity of the model used. Results showed the positive and strong impact of the asset turnover rate on EPS, the positive and strong impact of the fixed asset turnover rate on the return on profitability, and the positive impact of the (WCT) on EPS. Therefore, asset management efficiency positively affects the EPS. Moreover, this result indicates the efficiency of industrial companies in managing assets during the study period.