Ownership structure impact on Jordanian banks’ financial performance

This study seeks to examine the effect of ownership structures on the Jordanian commercial banks’ performance for the period 2005 -2014. It also aims to investigate the impact of the bank’s characteristics on the performance. This study uses Return on Investment and Return on Equity to assess the fi...

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Main Authors: Jarbou, Loay Saleh, Abu-Serdaneh, Jamal, Mahd, Osama Abdel Latif
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/19703/
http://journalarticle.ukm.my/19703/1/13684-90560-1-PB.pdf
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author Jarbou, Loay Saleh
Abu-Serdaneh, Jamal
Mahd, Osama Abdel Latif
author_facet Jarbou, Loay Saleh
Abu-Serdaneh, Jamal
Mahd, Osama Abdel Latif
author_sort Jarbou, Loay Saleh
building UKM Institutional Repository
collection Online Access
description This study seeks to examine the effect of ownership structures on the Jordanian commercial banks’ performance for the period 2005 -2014. It also aims to investigate the impact of the bank’s characteristics on the performance. This study uses Return on Investment and Return on Equity to assess the financial performance of the banks. The ownership structure was measured using ownership concentrations, institutional ownership, foreign ownership, and government ownership. Bank characteristics were also covered using size, age and debt to equity ratio. The study has shown that the banks’ profitability significantly decreases with a high ownership concentration, larger banks’ size, and higher debt to equity ratio. Meanwhile, the foreign ownership and government ownership have a significant positive impact on the banks’ performance. Moreover, the results found no impact for the institutional ownership and the age on the performance of Jordanian banks.
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spelling oai:generic.eprints.org:197032022-09-15T01:14:44Z http://journalarticle.ukm.my/19703/ Ownership structure impact on Jordanian banks’ financial performance Jarbou, Loay Saleh Abu-Serdaneh, Jamal Mahd, Osama Abdel Latif This study seeks to examine the effect of ownership structures on the Jordanian commercial banks’ performance for the period 2005 -2014. It also aims to investigate the impact of the bank’s characteristics on the performance. This study uses Return on Investment and Return on Equity to assess the financial performance of the banks. The ownership structure was measured using ownership concentrations, institutional ownership, foreign ownership, and government ownership. Bank characteristics were also covered using size, age and debt to equity ratio. The study has shown that the banks’ profitability significantly decreases with a high ownership concentration, larger banks’ size, and higher debt to equity ratio. Meanwhile, the foreign ownership and government ownership have a significant positive impact on the banks’ performance. Moreover, the results found no impact for the institutional ownership and the age on the performance of Jordanian banks. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19703/1/13684-90560-1-PB.pdf Jarbou, Loay Saleh and Abu-Serdaneh, Jamal and Mahd, Osama Abdel Latif (2018) Ownership structure impact on Jordanian banks’ financial performance. Asian Journal of Accounting and Governance, 9 . pp. 1-9. ISSN 2180-3838 https://ejournal.ukm.my/ajac/issue/view/1084/showToc
spellingShingle Jarbou, Loay Saleh
Abu-Serdaneh, Jamal
Mahd, Osama Abdel Latif
Ownership structure impact on Jordanian banks’ financial performance
title Ownership structure impact on Jordanian banks’ financial performance
title_full Ownership structure impact on Jordanian banks’ financial performance
title_fullStr Ownership structure impact on Jordanian banks’ financial performance
title_full_unstemmed Ownership structure impact on Jordanian banks’ financial performance
title_short Ownership structure impact on Jordanian banks’ financial performance
title_sort ownership structure impact on jordanian banks’ financial performance
url http://journalarticle.ukm.my/19703/
http://journalarticle.ukm.my/19703/
http://journalarticle.ukm.my/19703/1/13684-90560-1-PB.pdf