Measuring the Impact of Some Determinants of Return on Investment in Industrial Companies in Aqaba City

Abstract

The main objective of this study is to measure the effect of some variables to the return on investment in industrial companies in Aqaba city. It has been found that were three determinants of a positive impact on return on investment they are an indebtedness, automation and growth rate, while the two variables found to have a negative impact, the liquidity ratio and the rate of turnover in accounts receivable. The study recommended that companies resort debt in financing on their operations especially in asset purchase and rely on fixed assets at their production process and reduce the liquidity ratio as much as possible and to examine the reasons for the negative relationship between table circulation of accounts receivable and the rate of return on investment and to overcome them or reduce them.