Work

Financial Performance Drivers: A Focus on Working Capital Practices in Jordanian Tourism Companies

Year: 2025

Type: article

Abstract: The financial performance of tourism companies in Jordan is significantly influenced by their working capital practices. This study investigates how various working capital management strategies conservative, aggressive, and moderate impact the profitability of hotels and tourism corporations listed on the Amman Stock Exchange. Financial performance is assessed using return on assets (ROA), with company size considered as a control variable. By analyzing data from the financial statements of eight companies over the period 2010–2020 using SPSS, the findings indicate that a conservative strategy negatively affects financial performance, while aggressive and moderate strategies enhance ROA. The study also reveals notable differences in the application of working capital strategies across the sample. Offering empirical evidence from the hospitality sector in an emerging market context, the research underscores the critical role of efficient working capital management. It provides practical recommendations for managers to avoid overly conservative approaches while carefully balancing the risks of aggressive strategies to achieve sustainable profitability in the volatile tourism industry.

Source: Journal of Posthumanism

DOI: 10.63332/joph.v5i3.855