Impact of earnings components on future profitability of banking and insurance companies in Jordan

This study aimed to examine the impact of a firm’s total accruals and operating cash flows on future profitability (one-year-ahead ROA) using static model unbalanced panel data for all (15) banks (18) insurance companies listed Amman Stock Exchange from 2002 2019. The final sample study, analysis, consisted 280 observations taken banking sector 410 sector. pooled banks’ showed no significant one-year-ahead ROA. result is consistent with previous studies’ results, which are still under debate, especially in developed countries. investors Jordanian not counting accrual earnings components, affected by different estimation procedures GAAP managerial discretion. companies’ higher variable value flow than companies. indicates more incrementally negative relation between growth assets ROA addition probable lower rate economic profits conservative bias accounting.