Analyzing the Effect of Credit and Liquidity Risks on Profitability of Conventional and Islamic Jordanian Banks
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2017, Vol 7, Issue 12
Abstract
The present paper investigates the influence of financial risks on the profitability of banks in Jordan (Islamic and conventional) for the period between 2006 and 2015. Profitability was measured in this study by return on assets (ROA) and return on equity (ROE), while the financial risks were reflected by liquidity and credit risks. The study has employed panel data regression to test the hypotheses. Results illustrated a substantial influence of credit risks on both ROA and ROE for the Islamic as well as the conventional banks. The association between liquidity risk and ROE were found to be insignificant for the Islamic and conventional banks. The influence of liquidity risk on ROA is significant for the Islamic and conventional banks. This result gives a clear indication to bank managers and the sector as a whole, that undertaking risks funding ventures will result in higher funding losses, with the consequence to banks, of considerable depletion of resources.
Authors and Affiliations
Mahmoud Al-Rdaydeh, Ali Matar, Odai Alghzwai
Why Consumers are Hesitant to Shop Online: The Major Concerns towards Online Shopping
Online purchases have become a new trend of shopping among university students in today’s Industrial Revolution 4.0. But, not all university students are open to shop online. Therefore, this study aims to explore the maj...
Predictor Factors for Collective Leadership: A Case of Secondary Schools
The purpose of this paper was to study the factors predicting collective leadership in Malaysian secondary schools in Kuala Lumpur. The survey method is used to measure the variables, which influences collective leadersh...
The Elements of Landscape in Islamic Courtyard Design: Case Study of Bayt Al-Suhaymi Museum in Cairo, Egypt and Alhambra Granada, Spain
This paper presents a review on the elements of landscape in Islamic Courtyard design. The aim of this paper is to study element of courtyard design with the comparison Bayt al- Suhaymi, Egypt and Alhambra Granada, Spain...
Towards developing a framework on happiness and productivity among personnel in Institution of Higher Learning
Happiness undeniably facilitates staff’s productivity in the workplace. Productivity could be changed by the developments in the level of knowledge, income or the technology innovation. The focus of this paper is to asce...
Module Spiritual Coping Strategies (MSDTK): An Approach to Deal with Stress among Teachers Trainee
Transforming life and the environment can be a burden factor amongst teacher trainees. Some of them failed to control and to deal with these burdens. In the field of education, teacher trainees encounter various challeng...