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The Impact of Financial Risk on Stock Returns in the Jordanian Commercial Banks during the Period "2007-2016"

المصدر: مجلة الاجتهاد للدراسات القانونية والاقتصادية
الناشر: المركز الجامعي أمين العقال الحاج موسى أق أخموك لتامنغست - معهد الحقوق والعلوم السياسية
المؤلف الرئيسي: Abu Aleem, Alaa A. (Author)
مؤلفين آخرين: Zaoui, Mohamed (Co-Author) , Abbad, Juma M. (Co-Author)
المجلد/العدد: مج12, ع2
محكمة: نعم
الدولة: الجزائر
التاريخ الميلادي: 2023
التاريخ الهجري: 1444
الشهر: مايو
الصفحات: 263 - 285
DOI: 10.36540/1914-012-002-013
ISSN: 2335-1039
رقم MD: 1380429
نوع المحتوى: بحوث ومقالات
اللغة: الإنجليزية
قواعد المعلومات: EcoLink, IslamicInfo
مواضيع:
كلمات المؤلف المفتاحية:
Commercial Banks | Financial Risk | Liquidity Risk | Credit Risk | Solvency Risk | Stock Returns
رابط المحتوى:
صورة الغلاف QR قانون

عدد مرات التحميل

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المستخلص: This study aimed at measuring the impact of financial risks represented by (liquidity risk, credit risk and solvency risk) on the stocks return of Jordanian commercial banks. The study was conducted on the Jordanian banking sector consisting of thirteen Jordanian commercial banks during the period (2007-2016). In order to estimate the impact of financial risk on stocks returns, the study used Panel data analysis method. In order to test hypotheses, based on the Hausman test the random effect model was used between independent variables (liquidity risk, solvency risk, and credit risk) and stocks returns. The study reached several results: There is not a significant impact on liquidity risk on the stock returns and thus acceptance of the first hypothesis, the existence of a negative impact of the risk of banks' solvency on the stock returns and thus rejecting the second hypothesis, and there is significance negative impact of credit risk on the returns of stocks, the third null hypothesis is rejected. The study recommended the need to reduce the credit risk by studying the financial solvency of customers (debtors), By seeking more collateral to ensure that the reduced probability of default in repayment, Thus eroding the stock's returns in the Banks as a result of this, And the need for banks to improve the level of financial solvency because of a clear reflection on the confidence of customers, especially depositors, which means increasing the funds flowing to the bank and therefore on investments and stocks returns, And the need to focus commercial banks on the optimal choice between profitability and liquidity in order to achieve acceptable returns under the level of liquidity risk desired.

ISSN: 2335-1039