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The Relationship Between of Cash Flows (Financing, Investment and Operating) and Stock Prices, Size of the Firms

Author

Listed:
  • Tamer Bahjat Sabri
  • Khalid Mohammad Hasan Sweis
  • Issam Naim Mahammad Ayyash
  • Yasmeen Faheem Asaad Qalalwi
  • Israa Sami Abbas Abdullah

Abstract

This study sought to test the relationship between cash flows from operating activities, investment activities and financial activities and on one hand and stock returns and the volume of assets on the companies listed in Palestine Stock Exchange on the other hand. The study incorporated 24 companies in 2018 and the required data were obtained through the financial statements. To test the hypotheses of the study, the Mann-Whitny U Test was used, a nonparametric test. Also the Kolmogorov-Smirnov was done. The findings demonstrated that the value of the Whitny U Test was (-3.291) Z with a statistical significance at 1%. Based on this, the null hypothesis was rejected and the alternative one, stating that there is a statistically significant difference between the operating flows of companies with low assets and those companies with high assets, was accepted. However, the other null hypothesis was accepted. The study recommended that companies and investors should take into consideration cash flows when taking an investment decision in Palestine Stock Exchange.

Suggested Citation

  • Tamer Bahjat Sabri & Khalid Mohammad Hasan Sweis & Issam Naim Mahammad Ayyash & Yasmeen Faheem Asaad Qalalwi & Israa Sami Abbas Abdullah, 2020. "The Relationship Between of Cash Flows (Financing, Investment and Operating) and Stock Prices, Size of the Firms," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 424-433, October.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:5:p:424-433
    DOI: 10.5430/ijfr.v11n5p424
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    References listed on IDEAS

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    1. Hossein Jabbari & Zeinolabedin Sadeghi & Seyed Ali Askari, 2013. "Cash Flow, Earning Opacity and its Impact on Stock Price Crash Risk in Tehran Stock Exchange," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(4), pages 138-145, October.
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