Impact of Increasing the Crude Oil Prices on the Financial Performance of Pharmaceutical Companies Operating in Jordan for the Period (2002-2011) A Case Study of Jordanian Al-Hikma Pharmaceutical Company

Abstract

This study aimed to identify the impact of increase of the crude oil prices on pharmaceutical companies’ financial performance. The sample of the study included pharmaceutical companies in Jordan as Al-Hikma pharmaceutical Company was particularly chosen to be the sample of the study. Moreover, the study relied on some variables relevant to Al-Hikma pharmaceutical Company’s financial performance, such as (Return on Assets Ratio, Return on Equity Ratio, and Net Profit Margin). Furthermore, the results of the study showed that there was a statistically significance impact of increase of the crude oil price on the Return on Assets, Return on Equity, and Net Profit Margin of Al-Hikma pharmaceutical Company at a significance level (? = 0.05).

The study suggested a number of recommendations such as the central state must search for cheap oil alternatives (i.e. natural gas, solar energy and other energy sources).

Keywords: Crude Oil Prices, Financial Performance, Al-Hikma pharmaceutical Company.