scholarly journals The effect of liquidity risk on the performance of banks: Evidence from Jordan

Accounting ◽  
2022 ◽  
Vol 8 (2) ◽  
pp. 217-226 ◽  
Author(s):  
Mohammed AL-Ardah ◽  
Saleh K. Al-Okdeh
Keyword(s):  
Statistical Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Liquidity Risk ◽  
Survey Method ◽  
Working Capital ◽  
Return On Assets ◽  
Investment Ratio ◽  
Amman Stock Exchange

This study aimed to determine the impact of liquidity risk on financial performance of Jordanian banks, where liquidity risk was measured by (Liquidity ratio, net working capital, cash and investment ratio to total deposits), and financial performance was also measured through the index (return on assets) and the modifying variable (bank size) measured through the natural logarithm of total assets was also added. To achieve the objectives of the study, the analytical quantitative approach was adopted. The study community consisted of all 13 commercial banks listed on the Amman Stock Exchange. All banks in the study community were selected as a study sample using the comprehensive survey method, and the statistical analysis program (SPSS) was used to test the study hypotheses. Based on the results of the statistical analysis, it was found that there was an impact of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange, and there was an impact for each of (current liquidity ratio, net working capital, cash and investment ratio to total deposits) on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. It was also found that the size of the bank contributes to modifying the effect of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. The study concluded a set of recommendations, the most important of which are: commercial bank administrations should increase interest in exploiting their liquidity within acceptable risk limits to reach optimal ratios for financial performance by balancing the returns to be achieved with the potential risks of such expenses in a way that ensures the positive impact of liquidity risk on the financial performance of those banks.

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 effect of internal risks on the performance of Jordanian commercial banks

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1819-1824 ◽  
Author(s):  
Ahmad Alkhazali ◽  
Ghaith N. Al-Eitan ◽  
Hayel Al-serhan ◽  
Tareq O. Bani-Khalid ◽  
Ahmad A. Al-Naimi
Keyword(s):  
Credit Risk ◽  
Financial Performance ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Liquidity Risk ◽  
Negative Influence ◽  
Financial Leverage ◽  
Additional Risk ◽  
Future Studies ◽  
Amman Stock Exchange

This study mainly aimed to examine the effect of internal risks on the financial performance of the Jordanian commercial banks. The study sample comprised the entire commercial banks that are included in the Amman Stock Exchange (ASE) spanning the period from 2009 to 2019. The study formulated four hypotheses, which are related to the effects of liquidity risk and leverage risk on the bank’s performance, proxied by ROA and ROE. Based on the results, liquidity risk did not have a significant effect on both ROA and ROE, while leverage risk did not have a significant effect on ROA, but it did on ROE. It can thus be concluded that the use of financial leverage should be taken into consideration because of its negative influence on the banks’ financial performance, specifically on the shareholders’ returns. It is recommended that future studies examine the effect of additional risk types, like credit risk and operational risk on the performance of banks.

scholarly journals Intellectual Capital Effectiveness of Jordanian Banks Financial Performance

2021 ◽  
Vol 18 ◽  
pp. 552-568
Author(s):  
Abdulaziz Saymeh ◽  
Harbi Arikat ◽  
Firas Hashem ◽  
Ashraf Al-khalieh
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Study Group ◽  
Return On Assets ◽  
Amman Stock Exchange ◽  
Financial Intelligence ◽  
Positive Effect

Subject research intended to realize the effect of intellectual capital on the outcomes of Jordan’s banks listed on Amman Stock Exchange (ASE). Researchers had relyed on Pulic’s model to realize the reaserch objectives, the researchers had analyzed the banks’ historical financial statements. The study group consisted of all the banks listed on ASE for (2012-2018) period. Researchers had used the descriptive statistics and the basic fundamental analysese tools to mesure the effect of ideological capital as well as financial intelligence on the financial performance of sample banks [1]. This research had revealed a statistically significant positive effect of intellectual capital on the performance of the sample banks represented by the return on assets, while the research indicated that there was no significant effect of intellectual capital on the assets returns of ASE banks

scholarly journals The Impact of Capital Structure on the Financial Performance of the Jordanian Industrial Companies Listed on the Amman Stock Exchange for the Period 2012-2015

2018 ◽  
Vol 9 (2) ◽  
pp. 369
Author(s):  
Shireen Mahmoud AlAli
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Return On Assets ◽  
Return On Equity ◽  
Industrial Companies ◽  
Earnings Per Share ◽  
Amman Stock Exchange ◽  
The Impact ◽  
The Capital Structure

The purpose of this study was to identify the effect of the capital structure as a percentage of total liabilities to total assets on the financial performance of the Jordanian industrial companies listed on the Amman Stock Exchange for the period 2012-2015.The study population included all the Jordanian general industrial companies listed on the Amman Stock Exchange. The sample of the study included 10 industrial companies listed on the Amman Stock Exchange. The linear regression analysis was used to test the relationship between variables using the ordinary least squares method (OLS).The results showed that there is a positive significant impact on the capital structure of the industrial shareholding companies listed in the Amman Stock Exchange as measured by the ratio of equity to total assets, return on equity and return on assets and net earnings per share as an indicator of financial performance.The results also showed a negative significant impact on the capital structure of industrial shareholding companies listed on the Amman Stock Exchange as measured by total liabilities to total assets, return on equity and return on assets as an indicator of financial performance, and net earnings per share as an indicator of the financial performance indicators.

scholarly journals Financial Performance Comparison (Empiric Study on Conventional Commercial Banks and Sharia Commercial Banks 2012-2018)

2021 ◽  
Vol 6 (1) ◽  
pp. 59
Author(s):  
Akhmadi Akhmadi Akhmadi ◽  
Ernis Chaerunisa ◽  
Shinta Zahra Chaerunisa
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Performance Comparison ◽  
Islamic Banks ◽  
Return On Assets ◽  
Normality Test ◽  
Significant Difference ◽  
Loan Financing

<p>This study aims to examine more the comparison of financial performance between Islamic Commercial Banks and Conventional Commercial Banks. The population in this study includes conventional banking companies and Islamic banking which are listed on the Indonesia Stock Exchange and supervised by the Financial Services Authority (OJK) for the period 2012-2018 as many as 114 companies. The observational data used were 56 data from 14 general and Islamic banks which were sampled in this study. The method of analysis used the normality test, the independent sample t-test, and the Mann-Whitney test. The results showed that tThere is no significant difference in the Capital Adequency Ratio between Conventional Commercial Banks and Islamic Commercial Banks, There is a significant difference in non-performing loans / financing (NPL / NPF) between Conventional Commercial Banks and Islamic Commercial Banks, there is a significant difference in return on assets (ROA) between Commercial Banks Conventional with Islamic Commercial Banks, there is a significant difference in operating expenses to operating revenue (BOPO) between Conventional Commercial Banks and Islamic Commercial Banks, there is a significant difference in loan / financing to deposit ratio between Conventional Commercial Banks and Shari'ah Commercial Banks.</p>

scholarly journals THE EFFECT OF FINANCIAL PERFORMANCE RATIOS ON CONVENTIONAL BANK PROFITABILITY IN INDONESIA STOCK EXCHANGE

2019 ◽  
Vol 14 (2) ◽  
pp. 84
Author(s):  
Ahmad Azmy ◽  
Iqbal Febriansyah ◽  
Anita Munir
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Test Results ◽  
Return On Assets ◽  
Bank Profitability ◽  
Capital Adequacy Ratio

This study aims to analyze the effect of the ratio of financial performance to the profitability of private conventional commercial banks listed on the Indonesia Stock Exchange. Retrieval of data using financial statements from fourteen conventional commercial banks. The independent variables used include Capital Adequacy Ratio (CAR), Operational Income Operating Expenses (BOPO), Non Performing Loans (NPL), and Loan to Deposit Ratio (LDR). The profitability variable is proxied by Return on Assets (ROA). This type of research is quantitative that uses secondary data. The analysis was carried out using multiple regression analysis. The results showed that, CAR and NPL had no effect on ROA, while BOPO and LDR had a significant effect on ROA. Then the F Test results show that CAR, NPL, BOPO, and LDR simultaneously influence ROA

scholarly journals PENGARUH KINERJA KEUANGAN TERHADAP PERUBAHAN HARGA SAHAM BANK UMUM SYARIAH NASIONAL DI BURSA EFEK INDONESIA (Studi Kasus: PT Bank Panin Dubai Syariah, Tbk.)

2019 ◽  
Vol 11 (1) ◽  
pp. 23
Author(s):  
Benny Barnas
Keyword(s):  
Linear Regression ◽  
Financial Performance ◽  
Multiple Linear Regression ◽  
Stock Prices ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Financial Data ◽  
Return On Assets ◽  
Regression Methods ◽  
Earnings Per Share

Abstract: The purpose of this research is to examine the effect of Financial Performance, namely Return on Assets (ROA) and Earnings Per Share (EPS) on the stock price’s changes of National Sharia Commercial Banks are listed on the Indonesia Stock Exchange (IDX). The research hypothesis was analyzed using multiple linear regression methods, while the financial data is taken from Bank Panin Dubai Syariah, Tbk. with the period of 2014-2017. The results indicate that Return on Assets (ROA) and Earnings per Share (EPS) both partially and simultaneously influence on stock prices. However, the result of adjusted R2 show that 38,30 percent of stock prices are influenced by the Return on Assets (ROA) and Earning per Share (EPS), while 87,90 percent is influenced by other variables outside this model. Keywords: Return on Asset (ROA), Earning per Share (EPS), and Price of Share.

scholarly journals Financial Performance of Commercial Banks in Jordan: Application of the CAMELS Model

Prosperitas ◽  
2021 ◽  
Vol 8 (2) ◽  
pp. 1-9
Author(s):  
Saleh Jawarneh
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Basel Committee ◽  
Management Efficiency ◽  
Market Risks ◽  
Amman Stock Exchange ◽  
Earning Ability ◽  
Asset Quality

The study aims to analyse and rank the financial performance of Jordanian commercial banks using the elements of the CAMELS model. The study relies on a sample of 12 Jordanian commercial banks listed on the Amman Stock Exchange during the period 2016–2020. The study used variables included in the CAMELS model, namely: capital adequacy, asset quality, management efficiency, profitability, liquidity, and sensitivity to market risks. The research results indicate that Jordanian commercial banks enjoy high Capital Adequacy Ratios that exceed the minimum required by the Central Bank of Jordan and the Basel Committee. Jordanian banks have a strong sensitivity to market risks; therefore, they can control market risks and face any risk to which they may be exposed as well as the variety of the securities invested in these banks. Jordanian commercial banks are also characterized by a good earning ability. On the other hand, Jordanian commercial banks have a weak asset quality, and they also maintain weak and insufficient liquidity ratios to meet any unforeseen needs. These banks also show weak management efficacy, and this rating reflects weak management in expense controls.

scholarly journals Loan Loss Provision and the Profitability of Commercial Banks: Evidence from Jordan

2016 ◽  
Vol 11 (12) ◽  
pp. 242 ◽  
Author(s):  
Mohammad Alhadab ◽  
Saba Alsahawneh
Keyword(s):  
Commercial Banks ◽  
Negative Impact ◽  
Stock Exchange ◽  
Negative Consequences ◽  
Loan Loss ◽  
Return On Assets ◽  
Return On Equity ◽  
Loan Loss Provision ◽  
Amman Stock Exchange ◽  
The Impact

<p>The purpose of this study is to examine the impact of loan loss provision on the profitability of Jordanian commercial banks. While the impact of loan loss provision on the profitability of banks has been examined by prior research, this study is the first to examine this relationship using Jordanian data. By examining a Jordanian sample of 13 banks that listed on Amman Stock Exchange (ASE) over the period 2004-2014, this study provides the first evidence that loan loss provision has a negative impact on the profitability of Jordanian commercial banks. This evidence suggests that Jordan banks adjust their loan loss provision due to several motives and, this in turn, leads to negative consequences for their profitability. Return on assets (ROA) and return on equity (ROE) are employed as a proxy of the profitability in this study. </p>

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