SARI SULEIMAN MOHAMMAD MALAHIMM ABDULLAH YUSRI AL KHATIB
Abstract
ABSTRACT
Objective: This study contributes to analyze a very important sector in Jordan which is banking sector. This process will be revealed by analyzing
the determinants of financial performance for the banks’ sector in Jordan during 2012–2016. Return on assets (ROA) was an indicator to measure
the financial performance as dependent variable. On the other side, the independent variables were represented by microeconomic variables and
macroeconomic variables. According to this study, microeconomic variables were liquidity quick ratio, cash and investments to total deposits, net
credit facilities to total deposits, debt ratio, and profit margin. In addition to that, macroeconomic variables were gross domestic product growth rate,
inflation rate, and unemployment rate as a percentage of total labor force.
Methods: The study relied on descriptive analytical method.
Results: After conducting the statistical analysis, there was an impact of profit margin on ROA at 1% significance level. The study inferred from that
there was no impact of the rest of microeconomic variables and macroeconomic variables as well on the financial performance indicator.
Conclusion: The study recommended banks’ sector in Jordan to focus and analyze the profit margin besides to analyze the changes in other
independent indicators to improve the financial performance for banks’ sector in Jordan.
د.ساري الملاحيم | Dr.Sari Malahim | 6118