Impact of Using Total Quality Management on the Financial Performance of Companies Listed on the Palestine Exchange

This paper aimed to explore the impact of using total quality management on the financial performance of companies listed on the Palestine Exchange. The researcher used the descriptive analysis approach and relied on a questionnaire and the analysis of the financial data of 15 companies from 2011 to 2015. A census is used to explore the opinions of the study population of 75 people, consisting of managers, heads of departments, and workers in the department of quality management and finance in the listed firms. Responses was 60, which represented a response rate of 80%. Research has concluded with a number of results, among which: The population expressed the degree of strongly agree on the dimensions of ”Total Quality Management”: Support of top management to the quality, continuous operations improvement, focus on the customer, workers participation and workers training. The weighted average of dimensions of TQM was 84.15%. The mean of Return on Assets (ROA) was 3%, while the mean of Return on Equity (ROE) was 7%, the mean of Return on Sales (ROS) was 24%, and current ratio was 1.14 times. The study showed that there was an impact of the use of total quality management on ROA, ROE, and ROS, while there was no impact of TQM on the current ratio of listed companies in Palestine Exchange. The study showed that there are significant differences at a significant level (α ≤ 0.05) in the responses of the research population about the use of total quality management of companies listed in Palestine Exchange. Those differences are due to a training course in the field of TQM that every responder participated ion it, Research has introduced a number of recommendations, among which: Enhance the level of participation of workers in companies listed in the Palestine Exchange companies, Create a specialized department caring about the total quality management in the companies that hadn’t before. In addition to assigning workers specialized in the quality field responsible for every quality policy in the company, providing creative advanced training courses and practices of the quality field for workers and how it influences the improvement on financial performance.