Banks play an important role in the development and prosperity of countries' economies. We cannot carry out daily transactions, whether individual or business, without their presence. The purpose of ...current study is to investigate whether a relationship exists between insolvency risk and Islamic banks' profitability in the MENA region. Previous researchers covered this risk individually, however, in this study the risk is taken into consideration including the deposit ratio which are the control variables in this study. For this purpose, data were obtained from 12 MENA countries covering 20 Islamic banks as panel data over ten years period from 2011 till 2020. The fixed effect models were relied upon to analysis data. In the study, the results of two profitability measures (ROA and ROE) were discussed to explain how they are distinct from each other using insolvency risk as independent variable. The results show that insolvency risk has insignificant effect on the profitability of Islamic banks measured by ROA and ROE, regarding control variable, the outcome demonstrate that deposit ratio has insignificant effect on ROA and ROE.
The aim of this research is to examine if the profit earned by Jordanian banks influenced by change in working capital turnover. Previous researchers depend on different metrics to evaluate how ...working capital turnover affects earnings, however, in this study utilize return on assets and return on equity as indicators of profitability, and use the ratio of revenue attributed to average working capital as a metric for measuring the working capital turnover. To achieve this objective, The chosen sample consists of 7 traditional banks operating in Jordan, and panel data analysis is utilized to examine the period spanning from 2015 to 2019. Data analysis was conducted using fixed effect models. In this research, we used profitability as dependent variable and working capital turnover as independent variable. The results show that profitability measured by ROE was negatively impacted by working capital turnover, while insignificant impact on ROA.
The aim of this paper is to investigate the possible association among profitability evaluated ROA and ROE and capital structure, represented by the debt ratio and debt to equity ratio with the share ...price of Jordanian banks. The chosen sample consists of 7 traditional banks operating in Jordan, and panel data analysis is utilized to examine the period spanning from 2015 to 2019. The model employed to analyze data is the fixed effect model. This study relied on (ROA, ROE, DR and DER) as independent variables, whereas the share price as dependent variable. The results reached reveal that a negative influence of debt ratio exists on Jordanian banks' share price, while positively impacted by ROA and ROE, however, DER has insignificant influence on share price that traded by Jordanian banks. The outcomes presented above align with the prevailing literature reviews included in this study, confirming the theoretical discussions concerning the interplay between capital structure, profitability, and share price.
The goal of this study is to see if there is a link between dividends per share, retained profits per share, and Jordanian stock prices. Previous studies examined these factors separately; however, ...in this study, all of these variables were included, in addition to financial leverage, which served as the control variable. The sample used for this purpose was acquired as panel data from 9 Jordanian enterprises from 2015 to 2019. To assess data, fixed effect models were used. The share price was employed as the dependent variable in this study. As independent variables, dividends per share and retained earnings per share were used. In addition, financial leverage is used as a control variable. The results show that share price has been positively impacted by dividends per share, while it has been insignificantly impacted by retained earnings per share and financial leverage.
The aim of this paper is to explore the potential correlation among operational risk and the profitability of Islamic banks in the MENA region. Different measures for profitability were relied upon ...in previous studies, however, in this article depend on return on assets and return on equity to measure profitability, and efficiency ratio calculated by operating expenses to total assets to measure operational risk. To achieve this objective, the sample comprises 20 Islamic banks from 12 MENA countries, creating panel data for a period of ten years from 2011 to 2020. The analysis was conducted using fixed effect models. The study will analyze and interpret the findings from two financial performance measures, namely, ROA and ROE to get insights into the banks' overall financial situation and their ability to generate profits from their assets and equity. Using one type of operational risk measured by (efficiency ratio) as an independent variable, along with profitability measures by (ROA and ROE) as dependent variables. These measures had a significant negative impact by the operational risk measured by (efficiency ratio). This means when the operational risk increases, this indicates that the management is not controlling the operations of the bank in the best way and inability or failure of the bank's management to effectively utilize the available resources and assets to generate satisfactory profits. This leads to an increase in the operating expenses and hence a decrease in profitability measures.
The study aimed to examine the effects of accounting technology improvements on the generation of accurate and reliable financial reports in the public sector of Jordan. In order to carry out this ...inquiry, the researchers set research goals and formulated null hypotheses that were derived from these objectives and afterwards used in the study. The study used an ex-post facto survey methodology as its research technique. The study sample included 250 persons employed at the Ministry of Finance in Jordan. The research included a sample size including 152 people. A questionnaire was used as the primary tool for data collection in this study. The validity of the instrument was established by an evaluation conducted by experts specialising in the field of testing and measurement. The evaluation of the instrument's dependability was performed using the Cronbach Alpha reliability approach, yielding a reliability coefficient ranging from 0.73 to 0.85. The findings of this research demonstrate that the instrument has a significant level of dependability. The data obtained from the surveys underwent analysis using the Pearson Product-Moment Correlation (PPMC) and regression analysis approaches. The present study offers empirical data and affirms the growing significance of financial reporting in the global economic landscape. Ensuring unwavering trust in the financial information pertaining to the public sector has considerable significance for investors. The article proposes that the establishment of a comprehensive framework of guidelines for enterprises' information technology infrastructure would be advantageous for regulatory bodies, such as the Jordan Central Bank. The aim of this method is to reduce the potential danger of the public sector being overwhelmed by outdated technology.
