The Effect of E-Commerce on Financial Performance Measured by Return on Asset and Tobin’s Q of Jordanian Service Companies

This study aimed to investigate the effect of e-commerce on financial performance, measured by Return on Assets and Tobin’s Q indicators, for Jordanian service companies listed on the Amman Stock Exchange (ASE). To achieve the objectives of the study, a descriptive-analytical approach was adopted, relying on data extracted from the financial reports of the 40 concerned service companies representing the study sample, for the period 2018–2022. Copies of the questionnaire were distributed to the companies, to be completed by their respective employees, who are engaged in E-Commerce, to measure E-Commerce operations and activities in the companies. The study was based on Multiple Linear Regression on order to test the study hypotheses. The study confirmed that E-Commerce has a positive effect on the financial performance of Jordanian service companies, measured by the Return on Assets and Tobin’s Q indicators, and the existence of a difference in the E-Commerce explanatory power coefficient of the financial performance, as it was clear that the value of the explanatory coefficient (Adjusted R2) was higher for the Tobin’s Q than that of the Return on Assets of Jordanian services.