EVA and the Impact of the Macroeconomic Variables: Evidence from the Jordanian Manufacturing Companies
This study aimed at examining the effect of macroeconomic variables on the performance of Jordanian manufacturing companies listed in Amman Stock Exchange expressed by EVA using unbalanced panel data pooled ordinary least square (OLS) regression model of all 77th Jordanian manufacturing companies listed at ASE for the period 2000-2014 resulting in 1085 firm-year observations connecting firm level and time series data set. This study has revealed that interest rate has statistically significant inverse effect on the performance of the Jordanian manufacturing companies (β=-0.064, p-value <0.01).The results of this study have also revealed that Inflation (β=0.0945, p-value <0.05) and Government expenditure ratio(β=0.0734, p-value <0.05) have a statistically significant positive effect on the performance of the Jordanian manufacturing companies at the significance level <0.05.Also, Gross domestic product(β=0.00395, p-value <0.10) affects the performance of the Jordanian manufacturing companies at the significance level< 0.10, and finally, the study has revealed that Money supply and the labor force indicator have no statistically significant effect on the performance of the Jordanian manufacturing companies. Basically, and depending on the results of this study, we can conclude that Economic Value Add (EVA) of the Jordanian manufacturing companies, as a proxy of the performance, is a function of Inflation, Interest rate, Government expenditure ratio and Gross domestic product.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in MTI journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.