The Causal Relationship between Financial Decisions and Their Impact on Financial Performance
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 2
Abstract
This study aimed to find a causal relationship between financial decisions (investment decision, Financing decision, and the dividend decision) and the causal relationship between those decisions and the financial performance of the Jordan commercial banking sector as measured by return on assets and return on equity for the period from 2002 to 2011. Where the study sample consisted of all commercial banks operating in the Jordanian's banking sector reached to thirteen banks. Among the most important findings of the study have a causal relationship in one direction between investment decision and financing decision, and the absence of a causal relationship between the distribution of profits and resolutions investment and financing. And the rate of return on assets is causing in both investment and financing decision, and there is no causal relationship between the decision of the distribution of profits and the entire rate of return on assets and return on equity.
Authors and Affiliations
Zaher Abdelfattah Alslehat, Farouq Rafiq Altahtamouni
Keywords
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- EP ID EP121239
- DOI 10.6007/IJARAFMS/v4-i2/803
- Views 94
- Downloads 0
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