IDEAS home Printed from https://ideas.repec.org/a/vrs/ecoman/v15y2023i1p73-85n3.html
   My bibliography  Save this article

Impact of cash flow variation on project performance: contractors’ perspective

Author

Listed:
  • Tarawneh Sultan

    (Mutah University, Applied Science Private University, Jordan)

  • Almahmoud Anoud Fawwaz

    (Mutah University, Jordan)

  • Hajjeh Hassan

    (Applied Science, Private University, Jordan, MEU Research Unit, Middle East University, Amman, Jordan)

Abstract

This study aims to determine the impact of cash flow variation in Jordanian construction projects from contractors’ perspective and its relationship with project performance. An online questionnaire was developed and distributed to a selective sample. The respondents were project managers from contracting companies working in Jordan, around 340 construction companies. The sample frame was a form of non-probability sampling of 181 project managers. The collected data were analysed using the Statistical Package of the Social Sciences (SPSS) version 25. The study results showed a positive statistically significant effect at the significance level (α ≤0.05) of cash flow variation on project performance in Jordanian construction projects. In addition, respondents indicated a high level of agreement on the impact of cash flow variation on projects’ performance, with a mean of 4.01 and a standard deviation of .546. However, on the project performance dimensions’ level, Quality came first, with a mean of 4.11 and at a high level, followed by Safety, with a mean of 4.01 and at a high level, while Final Cost ranked third with a mean of 3.96 and at a high level. Finally, Project Final Duration ranked fourth with a mean of 3.95. The researchers recommended the necessity of more efforts for a better understanding of the importance of cash flow by contractors to schedule project activities correctly and efficiently to maintain a steady state of the project cash flow.

Suggested Citation

  • Tarawneh Sultan & Almahmoud Anoud Fawwaz & Hajjeh Hassan, 2023. "Impact of cash flow variation on project performance: contractors’ perspective," Engineering Management in Production and Services, Sciendo, vol. 15(1), pages 73-85, March.
  • Handle: RePEc:vrs:ecoman:v:15:y:2023:i:1:p:73-85:n:3
    DOI: 10.2478/emj-2023-0006
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/emj-2023-0006
    Download Restriction: no

    File URL: https://libkey.io/10.2478/emj-2023-0006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hasan Mahmoud & Vian Ahmed & Salwa Beheiry, 2021. "Construction Cash Flow Risk Index," JRFM, MDPI, vol. 14(6), pages 1-17, June.
    2. McInnis, John & Collins, Daniel W., 2011. "The effect of cash flow forecasts on accrual quality and benchmark beating," Journal of Accounting and Economics, Elsevier, vol. 51(3), pages 219-239, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haeyoung Shin & Michael Lacina & Shanshan Pan, 2024. "The order in a series of continuous special items and the likelihood of income classification shifting," Review of Quantitative Finance and Accounting, Springer, vol. 63(3), pages 829-862, October.
    2. Sandip Dhole & Ferdinand A. Gul & Sagarika Mishra & Ananda M. Pal, 2021. "The joint information role of analysts’ cash flow and earnings forecasts," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 499-541, March.
    3. Azal Mahboob & Akila Rathnasinghe & Anushika Ekanayake & Piyumi Tennakoon, 2024. "Evaluating BIM’s Role in Transforming Cash Flow Forecasting Among Construction SMEs: A Saudi Arabian Narrative," Sustainability, MDPI, vol. 16(23), pages 1-23, November.
    4. Mohammad Issa Almaharmeh & Ra’ed Masa’deh, 2018. "Mandatory IFRS Adoption and Earnings Quality: Evidence from the UK," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 197-197, November.
    5. Anup Srivastava, 2019. "Improving the measures of real earnings management," Review of Accounting Studies, Springer, vol. 24(4), pages 1277-1316, December.
    6. David Folsom & Paul Hribar & Richard D. Mergenthaler & Kyle Peterson, 2017. "Principles-Based Standards and Earnings Attributes," Management Science, INFORMS, vol. 63(8), pages 2592-2615, August.
    7. Hyun Min Oh & Sam Bock Park & Jong Hyun Kim, 2020. "Do Analysts’ Cash Flow Forecasts Improve Firm Value?," IJFS, MDPI, vol. 8(4), pages 1-25, October.
    8. Frost, Carol Ann & Guragai, Binod & Rapley, Eric T., 2017. "Differences in responses to accounting-based and market-based benchmarks – Evidence from Nasdaq," Advances in accounting, Elsevier, vol. 38(C), pages 46-62.
    9. Robert M. Bushman & Alina Lerman & X. Frank Zhang, 2016. "The Changing Landscape of Accrual Accounting," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 41-78, March.
    10. Daniel Cohen & Shailendra Pandit & Charles E. Wasley & Tzachi Zach, 2020. "Measuring Real Activity Management†," Contemporary Accounting Research, John Wiley & Sons, vol. 37(2), pages 1172-1198, June.
    11. Cheng, Mei & Dhaliwal, Dan & Zhang, Yuan, 2013. "Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting?," Journal of Accounting and Economics, Elsevier, vol. 56(1), pages 1-18.
    12. Elizabeth A. Gordon & Elaine Henry & Bjorn N. Jorgensen & Cheryl L. Linthicum, 2017. "Flexibility in cash-flow classification under IFRS: determinants and consequences," Review of Accounting Studies, Springer, vol. 22(2), pages 839-872, June.
    13. Lawrence Brown & Kelly Huang & Arianna Pinello, 2013. "To beat or not to beat? The importance of analysts’ cash flow forecasts," Review of Quantitative Finance and Accounting, Springer, vol. 41(4), pages 723-752, November.
    14. John L. Abernathy & Brooke Beyer & Eric T. Rapley, 2014. "Earnings Management Constraints and Classification Shifting," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(5-6), pages 600-626, June.
    15. Hu, Jinshuai & Kim, Jeong-Bon, 2019. "The relative usefulness of cash flows versus accrual earnings for CEO turnover decisions across countries: The role of investor protection," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 34(C), pages 91-107.
    16. Yang Pang & Shimeng Shi & Yukun Shi & Yang Zhao, 2022. "A nonlinear dynamic approach to cash flow forecasting," Review of Quantitative Finance and Accounting, Springer, vol. 59(1), pages 205-237, July.
    17. Dan Dacian Cuzdriorean, 2013. "Most Recent Findings In Earnings Management Area: Interesting Insights From Traditionally Top 5 Leading Accounting Journals," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-5.
    18. Lacina, Michael & Pan, Shanshan & Garner, Steve, 2024. "The BP oil spill and income classification shifting of oil and gas companies," Advances in accounting, Elsevier, vol. 65(C).
    19. Ryan Casey & Feng Gao & Michael Kirschenheiter & Siyi Li & Shailendra Pandit, 2017. "Articulation-based accruals," Review of Accounting Studies, Springer, vol. 22(1), pages 288-319, March.
    20. Sarfraz Khan & John K. Wald, 2015. "Director Liability Protection, Earnings Management, and Audit Pricing," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 12(4), pages 781-814, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ecoman:v:15:y:2023:i:1:p:73-85:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.