Al-Balqa Journal for Research and Studies

Published by: Deanship of Scientific Research, Al-Ahliyya Amman University

ISSN (Print Version): 1684-0615, ISSN (Online Version): 2616-2814

Open Access Journal

Relationship between Financial Performance and Total Risks A Case Study on Jordanian Commercial Banks Listed at . Amman Stock Exchange


Volume 14, Issue No 2, 2011

Pages: 185 - 214

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Abstract

The objective of the study was to examine what relationship might exist between the financial performance and the total risks of the commercial banks listed at Amman Stock Exchange (ASE). Six indicators are used; profitability, leverage, liquidity, capital adequacy, assets quality and revenue quality. Total risks were measured by the standard deviation over the period January 2000 to December 2006. Data used were collected from official sources for eleven banks. The study indicates that profitability is the only financial performance measure which has a significant negative effect on the total risks of the commercial banks’ stocks traded at ASE, sixteen percent of the total risks vitality of the stock prices are due to that variable, the rest of the percentage change is due to other factors not included in the model



Keywords

Financial Performance -Total Risks.


Subjects


Citation

Salameh, R. &  

Al-Refaie, M.

  (2011).

  Relationship between Financial Performance and Total Risks A Case Study on Jordanian Commercial Banks Listed at . Amman Stock Exchange.

  Al-Balqa Journal for Research and Studies,

  14

(2),

  185-

214.