The banking sector plays a significant role in countries’ economies worldwide. It provides financial stability in the whole economy. It offers safe and secure financial services to help people. This study fills the gap in the literature related to the banking sector in Jordan. Leverage is the employ of borrowed money to magnify the outcomes of an investment. However, companies use leverage to increase the returns of investors' money, and investors can employ leverage to exploit various securities. The study aims to measure the impact of financial leverage, liquidity, and bank size on the financial performance of Jordanian commercial banks (return on equity) on 13 Jordanian commercial banks listed on the Amman Stock Exchange during the period from 2012 to 2022. The fixed-effects model was used to achieve the objectives of the study, and its results showed a statistically significant positive effect of financial leverage on the financial performance of banks, while it showed a statistically significant negative effect of volume on financial performance, and the conclusion is that there is no effect of liquidity on financial performance. The study recommends working on increasing the indicator of the size of Jordanian commercial banks, which is represented in total assets because of its role in increasing the financial performance of Jordanian commercial banks. Keywords: Financial Leverage, Liquidity, Volume, Financial Performance, Commercial Banks, Jordan DOI: https://doi.org/10.35741/issn.0258-2724.58.3.44
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