Risks and bank performance in Jordan

Risks and bank performance in Jordan

Issue that revolves around risks and bank performance has always been an essential and critical element for banking sector in Jordan. Indeed, this study examines the impact of risks on bank performance in Jordan. Data of this study were retrieved from the Data Stream and annual reports of listed ban...

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Main Author: Al Tarawneh, Marwan Hasan
Format: Thesis
Language:eng
eng
Published: 2016
Subjects:
HD61 Risk Management
HG Finance
Online Access:https://etd.uum.edu.my/6704/1/s817760_01.pdf
https://etd.uum.edu.my/6704/2/s817760_02.pdf
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Shafie, Rohami
topic HD61 Risk Management
HG Finance
spellingShingle HD61 Risk Management
HG Finance
Al Tarawneh, Marwan Hasan
Risks and bank performance in Jordan
description Issue that revolves around risks and bank performance has always been an essential and critical element for banking sector in Jordan. Indeed, this study examines the impact of risks on bank performance in Jordan. Data of this study were retrieved from the Data Stream and annual reports of listed banks in Amman Stock Exchange (ASE). The sample of study comprises of 15 banks in Jordan and the period of study is confined to 2010-2014 which involved 75 observations. The dependent variable of this study is bank performance which was measured by using ROA while risks’ hypotheses variables are operational risk, credit risk, and liquidity risk. The results show that operational risk and credit risk have a negative significant relationship with ROA while liquidity risk is found to have a positive insignificant relationship with ROA. Also, the study discovers that the relationship between firm size and ROA is negatively significant while the relationship between bank age and ROA is found to be positively significant. Finally, the result of the relationship between management change and ROA is positively insignificant. Hence, hypotheses of significant relationship between operational risk and credit risk with bank performance are supported while hypothesis of significant relationship between liquidity risk and bank performance is not. Moreover, the study provides suggestions and recommendations for future research work.
format Thesis
qualification_name masters
qualification_level Master's degree
author Al Tarawneh, Marwan Hasan
author_facet Al Tarawneh, Marwan Hasan
author_sort Al Tarawneh, Marwan Hasan
title Risks and bank performance in Jordan
title_short Risks and bank performance in Jordan
title_full Risks and bank performance in Jordan
title_fullStr Risks and bank performance in Jordan
title_full_unstemmed Risks and bank performance in Jordan
title_sort risks and bank performance in jordan
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2016
url https://etd.uum.edu.my/6704/1/s817760_01.pdf
https://etd.uum.edu.my/6704/2/s817760_02.pdf
_version_ 1747828105737666560
spelling my-uum-etd.67042021-04-05T01:46:55Z Risks and bank performance in Jordan 2016 Al Tarawneh, Marwan Hasan Shafie, Rohami Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD61 Risk Management HG Finance Issue that revolves around risks and bank performance has always been an essential and critical element for banking sector in Jordan. Indeed, this study examines the impact of risks on bank performance in Jordan. Data of this study were retrieved from the Data Stream and annual reports of listed banks in Amman Stock Exchange (ASE). The sample of study comprises of 15 banks in Jordan and the period of study is confined to 2010-2014 which involved 75 observations. The dependent variable of this study is bank performance which was measured by using ROA while risks’ hypotheses variables are operational risk, credit risk, and liquidity risk. The results show that operational risk and credit risk have a negative significant relationship with ROA while liquidity risk is found to have a positive insignificant relationship with ROA. Also, the study discovers that the relationship between firm size and ROA is negatively significant while the relationship between bank age and ROA is found to be positively significant. Finally, the result of the relationship between management change and ROA is positively insignificant. Hence, hypotheses of significant relationship between operational risk and credit risk with bank performance are supported while hypothesis of significant relationship between liquidity risk and bank performance is not. 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