Abstract

This study aims at examining the effect of cash flow on share price of the Jordanian commercial banks listed in Amman stock exchange, through measuring the effect of operational, investing and financing cash flow, as individual or jointly on the share price of the Jordanian commercial banks.

In order to achieve the objectives of the study a sample of twelve Jordanian commercial banks were chosen through intentional sampling approach, out of fifteen banks which constitutes the total number of the Jordanian commercial banks. These participating banks meet the requirement of the study.For the sake of the study, the analytical approach along with other necessary statistical methods have been utilized. Annual reports to obtain financial statements for the purpose of statements analysis are used too.

Statistical analysis indicates several results such as:

There is limited effect of operative, investment and financing cash flows on share market value of the Jordanian commercial banks (study’s sample responses on items 10, 20,132). Consequently, more concern is needed in regard to cash flow behavior when conducting share price assessment.

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