Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks

Profitability of commercial banks has been widely examined as a performance measure in developed countries but not in developing countries. This study measures the performance of commercial banks in Jordan by using ROA and ROE as profitability indicators affected by a group of financial factors (ban...

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Main Author:	Hussin, Mohmmad Anad
Format:	Thesis
Language:	eng eng
Published:	2011
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/2834/1/Mohmmad_Anad_Hussin.pdf https://etd.uum.edu.my/2834/2/1.Mohmmad_Anad_Hussin.pdf
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id	my-uum-etd.2834
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Katib, Mohamed Nasser
topic	HG Finance
spellingShingle	HG Finance Hussin, Mohmmad Anad Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks
description	Profitability of commercial banks has been widely examined as a performance measure in developed countries but not in developing countries. This study measures the performance of commercial banks in Jordan by using ROA and ROE as profitability indicators affected by a group of financial factors (bank capital ratio, size and loans) and non-financial factors (market capitalization and trading volume) for the period 2005-2009. This study has shown that bank financial factors, which are capital and loans, have a negative and significant influence on profitability indicator ROE but not on ROA, while bank size has no significant impact on both bank profitability measures (ROA and ROE).Bank non-financial factor, market capitalization, has a negative and significant influence on ROA, while it has significant positive influence on ROE in Jordanian commercial banks for the period 2005-2009. Trading volume has strong significant and positive influence on both ROA and ROE. This suggests that trading volume can be considered as the determinant for the commercial banks’ profitability in Jordan for the period 2005-2009. The study also has concluded that the ROE has the superiority to ROA as profitability measure in testing the profitability of commercial banks in Jordan for the observed period.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Hussin, Mohmmad Anad
author_facet	Hussin, Mohmmad Anad
author_sort	Hussin, Mohmmad Anad
title	Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks
title_short	Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks
title_full	Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks
title_fullStr	Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks
title_full_unstemmed	Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks
title_sort	financial, non-financial information and the performance of the jordian commercial banks
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2011
url	https://etd.uum.edu.my/2834/1/Mohmmad_Anad_Hussin.pdf https://etd.uum.edu.my/2834/2/1.Mohmmad_Anad_Hussin.pdf
_version_	1747827440457089024
spelling	my-uum-etd.28342016-04-19T00:44:15Z Financial, Non-Financial Information and the Performance of the Jordian Commercial Banks 2011 Hussin, Mohmmad Anad Katib, Mohamed Nasser Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Profitability of commercial banks has been widely examined as a performance measure in developed countries but not in developing countries. This study measures the performance of commercial banks in Jordan by using ROA and ROE as profitability indicators affected by a group of financial factors (bank capital ratio, size and loans) and non-financial factors (market capitalization and trading volume) for the period 2005-2009. This study has shown that bank financial factors, which are capital and loans, have a negative and significant influence on profitability indicator ROE but not on ROA, while bank size has no significant impact on both bank profitability measures (ROA and ROE).Bank non-financial factor, market capitalization, has a negative and significant influence on ROA, while it has significant positive influence on ROE in Jordanian commercial banks for the period 2005-2009. Trading volume has strong significant and positive influence on both ROA and ROE. This suggests that trading volume can be considered as the determinant for the commercial banks’ profitability in Jordan for the period 2005-2009. The study also has concluded that the ROE has the superiority to ROA as profitability measure in testing the profitability of commercial banks in Jordan for the observed period. 2011 Thesis https://etd.uum.edu.my/2834/ https://etd.uum.edu.my/2834/1/Mohmmad_Anad_Hussin.pdf application/pdf eng validuser https://etd.uum.edu.my/2834/2/1.Mohmmad_Anad_Hussin.pdf application/pdf eng public masters masters Universiti Utara Malaysia Abbasoğlu, O. F., Aysan, A. F. and Gunes, A. (2007). Concentration, competition, efficiency and profitability of the Turkish banking sector in the post-crises period. Munich Personal RePEc Archive, 1-23. Abreu M. and Mendes, V. (2002). Commercial bank interest margins and profitability: Evidence from EU countries. University of Connecticut, Department of Economics, Working paper series. Adler P. A. and Adler P. (1984). Social dynamics of financial markets. Greenwich, CT: JAI. Akhavein, J., Berger, A.N. and Humphrey, D.B. (1997). 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