Positive earnings quality boosts Jordanian companies' performance, study finds.
The study looked at how the quality of a company's earnings affects its performance in the Jordanian market. They used data from industrial companies listed on the Amman Stock Exchange from 2010 to 2018. The results showed that better earnings quality leads to higher Return on Assets, Return on Equity, and Earnings Per Share, which are indicators of a company's performance. This means that when companies have good control over their managers and use relevant accounting information, their performance improves. In conclusion, the study suggests that focusing on earnings quality can help companies do better in the market.