The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial Banks

The current research aims is to test the impact of loan portfolio returns on stock returns in the Jordanian commercial banking sector in the presence of solvency as a conditional variable (moderator). Set in the research represents all Jordan’s local commercial banks listed on the Amman Stock Exchan...

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Main Author: Z. Al-Slehat
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2023-05-01
Series:Финансы: теория и практика
Subjects:
Online Access:https://financetp.fa.ru/jour/article/view/2082
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author Z. Al-Slehat
author_facet Z. Al-Slehat
author_sort Z. Al-Slehat
collection DOAJ
description The current research aims is to test the impact of loan portfolio returns on stock returns in the Jordanian commercial banking sector in the presence of solvency as a conditional variable (moderator). Set in the research represents all Jordan’s local commercial banks listed on the Amman Stock Exchange for the period of 2013–2020. The SPSS program was used to achieve the study’s objective and test its hypotheses. The results showed significant impact of loan portfolio return on stock returns in the Jordanian banking sector. It means that loan portfolio return growth has an impact on shareholder stock returns as it depends on the bank’s financial performance. Solvency is a conditional variable to improve the impact of loan portfolio return on stock returns. Accordingly, the research presents a set of recommendations, Bank managers should focus on loan portfolio management and financial solvency in order to have greater profitability and follow the decisions which are passed by the Basel Committee.
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series Финансы: теория и практика
spelling doaj-art-fbb6df5a4b5042dea145ccd84e3a4ac72025-08-20T03:21:22ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892023-05-012729910710.26794/2587-5671-2023-27-2-99-1071025The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial BanksZ. Al-Slehat0Tafila Technical UniversityThe current research aims is to test the impact of loan portfolio returns on stock returns in the Jordanian commercial banking sector in the presence of solvency as a conditional variable (moderator). Set in the research represents all Jordan’s local commercial banks listed on the Amman Stock Exchange for the period of 2013–2020. The SPSS program was used to achieve the study’s objective and test its hypotheses. The results showed significant impact of loan portfolio return on stock returns in the Jordanian banking sector. It means that loan portfolio return growth has an impact on shareholder stock returns as it depends on the bank’s financial performance. Solvency is a conditional variable to improve the impact of loan portfolio return on stock returns. Accordingly, the research presents a set of recommendations, Bank managers should focus on loan portfolio management and financial solvency in order to have greater profitability and follow the decisions which are passed by the Basel Committee.https://financetp.fa.ru/jour/article/view/2082loan portfolio returnsstock returnssolvencyfinancial marketsjordanian commercial banksspss program
spellingShingle Z. Al-Slehat
The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial Banks
Финансы: теория и практика
loan portfolio returns
stock returns
solvency
financial markets
jordanian commercial banks
spss program
title The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial Banks
title_full The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial Banks
title_fullStr The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial Banks
title_full_unstemmed The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial Banks
title_short The Impact of Loan Portfolio Returns on Stock Returns: The Moderating Role of Solvency in Jordanian Commercial Banks
title_sort impact of loan portfolio returns on stock returns the moderating role of solvency in jordanian commercial banks
topic loan portfolio returns
stock returns
solvency
financial markets
jordanian commercial banks
spss program
url https://financetp.fa.ru/jour/article/view/2082
work_keys_str_mv AT zalslehat theimpactofloanportfolioreturnsonstockreturnsthemoderatingroleofsolvencyinjordaniancommercialbanks
AT zalslehat impactofloanportfolioreturnsonstockreturnsthemoderatingroleofsolvencyinjordaniancommercialbanks