Impact of Managerial Factors on Commercial Bank Profitability: Empirical Evidence from Jordan
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2013, Vol 3, Issue 3
Abstract
The objective of this paper is to determine the management controllable factors that determine bank’s profitability of the Jordanian commercial banks listed in Amman Stock of Exchange (ASE). For this, the bank-specific variables are derived from the income statements and the balance sheets of commercial banks published in ASE. Excluding Islamic banks, thirteen Jordanian commercial banks listed in ASE since 2000 were selected (91 observations) over the 2005-2011 intervals. This paper uses descriptive analysis(includes the mean, minimum, maximum, median and standard deviation), financial ratios analysis, Pearson correlation analysis ,regression analysis, analysis of variance (ANOVA) and the natural logarithm to implicate the results with the hypotheses. The factors taken into consideration are Profitability measured by ROA, measured by Cost efficiency CIR, measured by Liquidity LADST, measured by Credit Composition measured by NCTA, Credit Risk measured by PRCF, Capital adequacy measured by TETA and the Bank Size measured by SZE. The major outcome of this study is that the cost income ratio is the major endogenous factors under the control of management that determines the profitability of the commercial banks in Jordan. Other variables, such as LADST, NCTA, PRCF, TETA and SZE did not show any statistical effect on profitability.
Authors and Affiliations
Mohammad Abdelkarim Almumani
Keywords
Related Articles
- EP ID EP136114
- DOI 10.6007/IJARAFMS/v3-i3/203
- Views 74
- Downloads 0
Comparing Information Content of Accounting in Companies with Growth and Value Stocks in Tehran Stock Exchange
Unemployment Evolution and Analysis of Structural Unemployment in Romania in the Period 2014-2015
Implementation of Good Corporate Governance and Voluntary Disclosure Compliance: 100 Compass Index Companies Listed Indonesian Stock Exchange (IDX) 2015-2016
The purpose of this study is to discuss the role of the company's 100 compass indexed in developing the best practices of corporate governance on voluntary disclosure. Based on the annual financial statements of 70 compa...
Relationship between HRM Practices and Organizational Commitment of Employees: An Empirical Study of Textile Sector in Pakistan
The objective of this study is to examine the relationship between HRM practices and organizational commitment of employees in various sectors in Pakistan. In this era, organizations are striving hard to attract and reta...
Team Collaboration Essential Factor in Ensuring the Performance Organization
The main objective of this research is to identify psycho-social valences of teamwork that converge to increase the sustainability of the organization. In this respect, we will try to outline a flexible model for a bette...