scholarly journals The Impact of Other Comprehensive Income Items on Financial Performance: Case of Jordanian Commercial Banks

2019 ◽  
pp. 1216-1228
Author(s):  
Adul Aziz Saymeh ◽  
Ayman Mansour Khalaf ALkhazaleh ◽  
Eman Marwan Musallam
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Net Income ◽  
Return On Assets ◽  
Return On Equity ◽  
Comprehensive Income ◽  
Dependent Variables ◽  
Other Comprehensive Income ◽  
Independent Variable ◽  
The Impact

This study aims to determine the effect of the independent variable other comprehensive income on the dependent variables represented by the financial performance of commercial banks. Researcher has studied the case of Jordanian Commercial Banks during the period 2012 to 2017. The study sample consists of 13 Jordanian commercial banks. The study independent variable was given by the quotient of other comprehensive income on net income. The ratios: financial performance by return on assets, and return on equity were the two dependent variables. Study hypotheses were tested by the simple regression equation and T- test. It was found that there was a statistically significant effect of other comprehensive income on the financial performance as measured by the return on assets and return on equity. This significance can be attributed to the increasing weight of other comprehensive income items which makes the value of other comprehensive income an indicator of profitability and efficiency of banks and means of maximizing their wealth. It is recommended that Amman Stock Exchange, Securities Commission and the Companies Control Department, to urge the companies listed on ASE to increase the awareness of companies’ management about the importance of other comprehensive income concept.

scholarly journals The Impact of Capital Structure on Jordanian Banks Performance

2021 ◽  
Vol 10 (1) ◽  
pp. 35
Author(s):  
Rania Al Omari
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Return On Investment ◽  
Stock Exchange ◽  
Return On Assets ◽  
Return On Equity ◽  
Total Debt ◽  
Amman Stock Exchange ◽  
The Impact

Due to the great importance of the financing structure of banks, the impact of capital structure on the financial performance of banks listed on the Amman Stock Exchange has been examined. To achieve the objectives of this study, we have followed the experimental approach. The study relied on financial variables. The Capital Structure has been measured by the ratios of total debt to total assets and total debt to total equity. Both ratios are independent variables. The dependent variable in this study is the financial performance of banks represented by the ratio of return on assets, the ratio of return on equity, the ratio of return on investment, and the ratio of return on share. The study community and sample consisted of twelve commercial banks listed on Amman Stock Exchange (ASE) during the period (2007-2017). Statistical Package for the Social Sciences (SPSS) software was used in testing of research hypotheses. The most important results are that the capital structure has an impact on return on assets (ROA), while it has no impact on return on equity (ROE), return on investment (ROI) and earnings per share (EPS) in Jordanian commercial banks.

scholarly journals The Impact of Comprehensive Income on Owners Equity at the Jordanian Commercial Banks, Analytical Study

2019 ◽  
pp. 1312-1320
Author(s):  
Mohammad Ali Al Hayek ◽  
Abdel-Rahman kh. El-Dalabeeh
Keyword(s):  
Commercial Banks ◽  
Analytical Study ◽  
Study Data ◽  
Net Income ◽  
The Public ◽  
Comprehensive Income ◽  
Study Results ◽  
Other Comprehensive Income ◽  
Relationship Of ◽  
The Impact

The study aimed to examine the impact of comprehensive income statement’s items on the owners equity of Jordanian commercial banks, and to achieve this objective researcher conducted an analytical study by adopting the descriptive and analytical approach, and used the statistical method to analyze the study data represented in the actual data, which were taken from the financial statements of the (13) Jordanian commercial banks for the period (2008-2017). The study found a statistically significant impact of comprehensive income statement’s items on the owners equity of Jordanian commercial banks, and in regard to the secondary hypotheses the study results showed nonexistence of statistically significant impact of net income on the owners equity of Jordanian commercial banks, but found a statistically significant impact for each of the other comprehensive income and comprehensive net income on the owners equity of Jordanian commercial banks. One of the main recommendations of the study will be to increase the attention to comprehensive income, due to its impact on the owners equity, and to conduct additional studies about the impact and the relationship of study variables at the public shareholding companies, in other sectors.

scholarly journals Treasury Single Account (TSA) Implementation and Financial Performance of Commercial Banks in Nigeria

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Benjamin Ezugwu Onodi ◽  
Adanma Sabina Eyisi ◽  
Jane Chinyere Akujor
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Secondary Data ◽  
Statistical Testing ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variable ◽  
Simple Regression Analysis ◽  
Simple Regression

This work examined the effect of Treasury Single Account (TSA) implementation on the financial performance of commercial banks in Nigeria. The study employed expo-facto survey research design and seven big commercial banks in Nigeria. First Bank of Nigeria, Zenith Bank, Access Bank, UBA, Union Bank, Diamond Bank and Fidelity Bank were judgmentally sampled for this study. Secondary data were gathered through CBN statistical bulletin from 2013 to 2017 (that is two years before and two years after implementation of TSA). Customers deposit was used as proxy for independent variable (Treasury Single Account), while profit after tax, return on equity and return on assets are proxies for dependent variable (financial performance). The data collected were analyzed using comparable mean, while research hypotheses were tested using Simple regression analysis. The findings obtained from the statistical testing of the hypotheses of this study show that customers’ deposit has a significant effect on profit after tax, return on assets and return on equity of commercial banks in Nigeria. The study recommends that Government should create enabling grounds for commercial banks to operate and be profitable to enable investors to have confidence on the economy because banks drive every economy. Commercial banks should increase their customer deposit by engaging in aggressive marketing strategy that will attract private individuals and businesses in order to increase the volume of their liquidity. Merger and acquisition should be encouraged in order to increase the capital base of banks and to make them strong and viable. Also, banks should avoid over-reliance on government deposits and focus more on other banking activities as well as investments that would help in enhancing their performance.

scholarly journals Liquidity Management and Financial Performance: Evidence From Commercial Banks in Botswana

2020 ◽  
Vol 11 (5) ◽  
pp. 399
Author(s):  
C.R. Sathyamoorthi ◽  
Mogotsinyana Mapharing ◽  
Mashoko Dzimiri
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Relationship ◽  
Secondary Data ◽  
Return On Assets ◽  
Liquidity Management ◽  
Policy Makers ◽  
Return On Equity ◽  
Research Population ◽  
The Impact

The study examined the impact of liquidity management on the financial performance of commercial banks in Botswana. The study used Return on Assets and Return on Equity to measure financial performance. Cash and cash equivalents to total assets ratio, Cash to deposits ratio, Loans to deposits ratio, Loans to total assets ratio, Liquid assets to total assets ratio, and Liquid assets to deposits ratio were used as proxies for liquidity management. The research population was all the 9 commercial banks in Botswana and the study covered a period of 9 years from 2011 to 2019. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyse the data. The results from regression analysis show statistically significant positive relationships for Loans to total assets ratio and Liquid assets to total assets ratio with return on assets and return on equity. Loans to deposits ratio and Liquid assets to deposits ratio had statistically significant negative relationships with return on assets and return on equity. Cash and cash equivalents to total assets ratio had statistically insignificant positive relationship with return on assets and return on equity whilst cash to deposits ratio had statistically insignificant negative relationship with return on assets and return on equity. Findings suggest that the commercial banks should try to optimize liquidity variables to boost bank performance. The policy makers also, through the Central Bank, should come up with initiatives such as prescribing minimum liquidity requirements that will help banks to stay profitable.

scholarly journals The Impact of Organizational Factors on Financial Performance: Building a Theoretical Model

2015 ◽  
Vol 2 (7) ◽  
pp. 51-57 ◽  
Author(s):  
Al Shahrani Saad M ◽  
Tu Zhengge
Keyword(s):  
Financial Performance ◽  
Management Practices ◽  
Organizational Factors ◽  
Manufacturing Firms ◽  
Service Firms ◽  
Return On Assets ◽  
True Nature ◽  
Return On Equity ◽  
Dependent Variables ◽  
The Impact

The paper is purposively designed to study the linkages between organizational factors, including liquidity, leverage, asset utilization, market share position and firm size on financial performance in service firms. In assessing the linkages, the study recruits return on assets (ROA) and return on equity (ROE) as dependent variables to assess financial performance derived from the existence of the stated organizational factors. The aspect of financial performance in service firms is an important one as it reflects the effectiveness of the management. Additionally, the growth of productivity in service firms is traditionally low compared to the manufacturing firms; hence, the organization of factors in manufacturing firms has been quite documented in the literature to be linked with financial performance. This provokes the question of whether management practices and organizational factors that have enhanced financial performance in manufacturing firms can also be accounted for the service firms. The financial performance of the company is essential to measure management as the individuals and groups within the organization that contributes towards the financial objectives of the company. The proposed research framework can be of practical value for the firms. Managers can benefit from the outcomes of the paper by having a clear picture of organizational factors and conducting necessary research in order to find out the true nature of these factors.

scholarly journals Corporate Social Responsibility on Firms’ Financial Performance: Evidence of Banking Sectors of Nepal

2020 ◽  
Vol 9 (1) ◽  
pp. 89-94
Author(s):  
Sudip Wagle
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Commercial Banks ◽  
Net Income ◽  
Return On Assets ◽  
Return On Equity ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Relationship Of

The purpose of this study was to find the trend and relationship of Corporate Social Responsibility (CSR) practices and Firm’s Financial Performance of Commercial Banks in Nepal. CSR became a mandatory issued in Nepal. Based on gaps in the extant literature, the current study hypothesizes that three dependent variables of financial performance i.e. Return on Assets (ROA), Return on Equity (ROE) and Net Income (NI) on the independent variable CSR. Out of listed 27 Commercial banks, the sample includes only 3 banks for the base of extensively disclosing CSR activities, from earlier than issued mandatory laws in Nepal. Four years of data (2015/16 to 2018/19) were collected for the study purposes. Data analyzed and interpreted using Statistical Package for Social Science (SPSS) Specifically Pearson’s Correlation to analysis the relationship between CSR disclosure activities and Financial Performance. The results revealed that out of 3 variables only a CSR activity on ROA is significantly accepted with having a negative correlation among them. Moreover, CSR activity on ROE & CSR activity on NI both are insignificant, having a neutral relationship i.e. rejected.

DİĞER KAPSAMLI GELİR KALEMLERİ İLE İŞLETMENİN PİYASA DEĞERİ ARASINDAKİ İLİŞKİ

2014 ◽  
Vol 1 (3) ◽  
pp. 269
Author(s):  
Serhan Gürkan ◽  
Yasemin Köse
Keyword(s):  
Financial Performance ◽  
Value Relevance ◽  
Net Income ◽  
Comprehensive Income ◽  
Income Statement ◽  
Other Comprehensive Income ◽  
The Difference ◽  
Gains And Losses

Other comprehensive income is the difference between net income as in the Income Statement and comprehensive income, and represents the certain gains and losses of the enterprise not recognized in the Profit or Loss Account. Value relevance of other comprehensive income is under discussion and considering other comprehensive income items all together might be misleading for financial performance. In the view of such information, discussing the value relevance of each other comprehensive income item, judgements are made.

scholarly journals The impact of discretionary loan loss provision of sharia financing on financial performance

2019 ◽  
Vol 14 (4) ◽  
pp. 34-41
Author(s):  
Z Zulfikar ◽  
Wahyuni Sri
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Structural Equation ◽  
Equation Modeling ◽  
Loan Loss ◽  
Return On Assets ◽  
Operating Income ◽  
Loan Loss Provision ◽  
Loan Loss Provisions ◽  
The Impact

This study aims to investigate the role of discretionary loan loss provision of sharia financing on the Islamic commercial banks’ financial performance in Indonesia. Partial Least Squares-Structural Equation modeling (PLS-SEM) is used to examine the relationship between loan loss provisions and financial performance in 13 Islamic commercial banks for 4.5 years. The analysis of the outer model shows that the probability of default and loss given default are determinants of loan loss provision, while financial performance is determined by return on assets, non-performing financing, net operating margin, and operating costs on operating income. The results of this study indicate that loan loss provisions have a direct effect on financial performance. Further investigation shows that the return on sharia financing contributes to increasing the impact of loan loss provisions on financial performance (indirect influence). The findings contribute to the literature by showing that discretionary loan loss provision can occur in sharia financing. The study is very important in terms of awareness of management behavior related to financial performance. The study has implications for management policies related to the prerequisites of potential clients.

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

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