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

Tamer Bahjat Sabri, Khalid Mohammad Hasan Sweis, Issam Naim Mahammad Ayyash, Yasmeen Faheem Asaad Qalalwi and Israa Sami Abbas Abdullah

International Journal of Financial Research, 2020, vol. 11, issue 5, 424-433

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.

Keywords: cash flows; investment activities; financial activities; Palestine Stock Exchange (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:11:y:2020:i:5:p:424-433

DOI: 10.5430/ijfr.v11n5p424

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