The Impact of the Reserves of Conventional and Islamic Banks Operating in Jordan on the Book Value and Market Value of Shares: A Comparative Analytical Study

Abstract

This study aimed at identifying the impact of the  reserves of Islamic and conventional banks whose shares are listed on the Amman Stock Exchange on the book and market value of these shares for the period (2010-2018). The study included thirteen conventional banks and two Islamic banks. The study found that there is a statistically significant effect of reserves held by Islamic and conventional banks on the market price, an effect of 73.6% for Islamic banks and 16.5% for conventional banks. Also, the study found that a statistically significant effect appeared between the reserves of Islamic banks and their stocks’ book value; this effect did not appear with conventional banks. The study also found that there was no statistically significant effect between the change in the reserves of conventional and Islamic banks and the change in the market price, and there was no statistically significant effect between the change in the reserves and the change in the book value of both conventional and Islamic banks.