Abstract
This study aims to identify the impact of financial performance of stock prices of Jordanian Islamic Banks which are listed on the ASE. In order to achieve the goal of this study, the researcher collected and analyzed data from two banks, as a study sample, during the period (2010 to 2018), using the panel data method. The study the measures the financial performance in financial ratios which were represented in (return on assets, return on equity, change in earnings per share) and were measured at stock prices. The results of the study showed that there is a discussion of the results of the main variable. Based on the results of the previous statistical tests, it was found that there is a significant statistical significance between the financial performance of the Islamic banks represented by (return on assets, return on equity, change in earnings per share); therefore, we believe that this result is consistent with economic studies and financial and market analyzes, therefore, stock prices are an indicator of the health of growth in the financial markets, and evidence of stock prices for banks which constitute the basis of stability and the functioning of markets, all due to the profitability of banks and stability of financial performance. The researcher recommended that the Jordanian Islamic banks seek to increase their profits and improve their financial performance and strive for excellence in their activities in order to win the trust and preservation of customers. He also recommended Islamic banks to distribute dividends on a periodic basis to shareholders and encourage them to keep shares instead of selling, which leads to the evaporation of those banks.Keywords: Financial Performance, Islamic Banks, Stock Prices.JEL Classifications: C18, G21DOI: https://doi.org/10.32479/ijefi.9157
Highlights
Islamic banks emerged five decades ago to meet the needs of a large group of depositors and investors who are wishing to deal with Islamic banks.The nature of its work and procedures are in line to meet the Islamic law, despite the short life of the experience, it has achieved wide spread, across the Arab, Islamic and international world.There is hardly a country without an Islamic bank, or a traditional bank with a window that provides services in accordance with Islamic law.That’s why a large part of investors is interested in knowing the stock prices of Islamic banks.this study came to choose a number of variables that are believed to affect the market stock price
This study aims to find out the impact of financial performance on the returns of shares of services companies listed on the Amman Stock Exchange during the period (2000-2012)
This study aimed to identify the impact of the financial performance of the Jordanian commercial banks for the period (2006-2014) on the share prices of these banks and aimed to identify the concept and importance of financial performance of banks and aimed to identify the indicators of financial performance, which is (return on assets, return on The study concluded that there was a statistically significant impact at the level of (0.05 α) on the financial performance of the Jordanian commercial banks for the period (2006-2014) on the share prices of these banks (Al-Farah et al, 2014)
Summary
Islamic banks emerged five decades ago to meet the needs of a large group of depositors and investors who are wishing to deal with Islamic banks.The nature of its work and procedures are in line to meet the Islamic law, despite the short life of the experience, it has achieved wide spread, across the Arab, Islamic and international world.There is hardly a country without an Islamic bank, or a traditional bank with a window that provides services in accordance with Islamic law.That’s why a large part of investors is interested in knowing the stock prices of Islamic banks.this study came to choose a number of variables that are believed to affect the market stock price. Islamic banks emerged five decades ago to meet the needs of a large group of depositors and investors who are wishing to deal with Islamic banks. There is hardly a country without an Islamic bank, or a traditional bank with a window that provides services in accordance with Islamic law. That’s why a large part of investors is interested in knowing the stock prices of Islamic banks. This study came to choose a number of variables that are believed to affect the market stock price. These variables are components of financial performance, namely: Return on assets, return on equity and change in earnings per share and discover their impact on the dependent variable, which is the market stock price of Islamic banks
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