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Does Liquidity and Solvency Affect Banks Profitability? Evidence from Listed Banks in Jordan

Year: 2016

Type: article

Abstract: This paper examines the impact of liquidity and solvency on banks profitability.All banks listed in Amman exchange were selected (15 banks) for the period 2012-2014.To measure the liquidity the quick ratio was calculated, Debt ratio was calculated to measure the solvency, whereas return on assets ratio was calculated to measure the profitability.Simple regression was used to examine the relations; the results showed that the liquidity has a negative (inverse) significant impact on profitability, whereas the solvency has a no impact on profitability.

Source: International Journal of Academic Research in Accounting Finance and Management Sciences

DOI: 10.6007/ijarafms/v6-i1/1954

Author: Ahmad DAHIYAT

Institution: Al-Balqa Applied University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W2299204152