Finanse, Rynki Finansowe, Ubezpieczenia

Previously: Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe, Ubezpieczenia


ISSN: 2450-7741     eISSN: 2300-4460    OAI    DOI: 10.18276/frfu.2016.4.82/2-63
CC BY-SA   Open Access 

Issue archive / 4/2016
The Impact of Financial Governance on Profitability in Jordanian Commercial Banks (During the Period 2004–2013)

Authors: Abdul Nafea Al Zararee

Ola Sinno
Keywords: profitability commercial banks financial governance
Data publikacji całości:2016
Page range:25 (723-747)
Cited-by (Crossref) ?:

Abstract

The aim of this study is to know the extent of the application of financial governance on Jordanian commercial banks. The study also aims to measure the effect of financial governance on the profitability of such banks throughout the use of some tools of financial governance such as the ratio of financial adequacy, financial leverage, loans to deposits, capital adequacy to deposits, net profit margin, and coverage ratio. The study consists of thirteen Jordanian commercial banks. As regards, the sample of the study, it includes three commercial banks whose capitals range between small, middle, and large during the period 2004–2013. To realize the goal of the study, the SPSS is applied to analyze the data of the study. The study depends on financial data taken from the yearly reports of the banks of the sample as they are issued on the electronic website of the Amman Stock Exchange. This study has been carried out with meta-data extraction, and standard deviations to test the normal distribution of the data. Moreover, Pearson’s correlation matrix tests the stability of the data for the study and variables are achieved. Finally this study adopts a simple linear regression and multiple analysis and the testing of the random effect of the hypotheses.
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