THE EFFECT OF FINANCIAL RATIOS, FIRM SIZE AND CASH FLOWS FROM OPERATING ACTIVITIES ON EARNINGS PER SHARE: (AN APPLIED STUDY: ON JORDANIAN INDUSTRIAL SECTOR)

Year 2011, Volume: 3 Issue: 1, 197 - 205, 01.06.2011

Khalaf Taani Mari'e Hasan Hamed Banykhaled

Abstract

─Abstract ─ The objective of this study is to examine the effect of accounting information on earning per share (EPS) by using five categories of financial ratios. A sample of 40 companies listed in the Amman Stock Market was selected. To measure the impact of financial ratios on EPS multiple regression method and stepwise regression models are used by taking profitability, liquidity, debit to equity, market ratio, size which is derived from firm’s total assets, and cash flow from operation activities as independent variables ,and EPS (Earning Per Share) as dependent variable. The results show that profitability ratio (ROE), Market ratio (PBV), cash flow from operation/sales, and leverage ratio (DER) has significant impact on earning per share

Keywords

financial ratio., Earnings per share, Amman Stock Market

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