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 85
- Downloads 0
Elements of Knowledge Management Systems of Enterprises
The Effect of Motivational Values on Professionalism in Accounting
This study attempts to find out various cultural aspects that have influenced on professionalism of accountants. The aim at this study is to explore a different approach to examine the influence of culture on a...
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...
Analysis on the Timeliness of the Accountability Report by the Treasurer Spending in Task Force Units in Indonesia
This study aims to analyze the role of treasurer capacity on human resources and its tenure of services, facilities and infrastructures, the regulation, intensity of training administration and accountability of each of...
Determinants of Audit Quality: Evidence from Deposit Money Banks Listed on Nigeria Stock Exchange
The objective of this study is to ascertain the determinants of audit quality with a focus on selected Deposit Money Banks listed on the floor of Nigeria Stock Exchange from 2010-2015. This study made use of secondary da...