The effect of electronic commerce on profitability of Jordanian commercial companies

Abstract

The study aims to determine the effect of e-commerce on the profitability of commercial companies of Jordan’s economy and to study the magnitude of the effect of e-commerce (whether positive or negative). The research population includes the commercial companies that are listed on the Amman Financial Market for four years (2015-2018), which consisted of (10) Companies that meet the conditions. The results of the study show that e-commerce practices positively affected the profitability in the commercial companies, also e-commerce benefits on Return on Assets (ROA) and Return on Equity (ROE) for commercial companies in Jordan. The findings of this study indicate that there is an effect of e-commerce benefits on (ROA) for commercial companies, where (0.016). Findings also indicates that there is an effect of e-commerce benefits on ROE for commercial companies, where (0.012). The researcher suggests developing and improving electronic commerce operations in Jordanian companies to improve the relationship between the companies and its customers. Which will lead to improve Jordanian economy rapidly?