Fintech: A Bibliometric Analysis for the Period of 2014
Authors : Alrawashdeh, N., Alsmadi A., Al-Gasaymeh, A. (2022). Quality-Access to Success
Abstract : Purpose: This study aims to examine the key intellectual and influential aspects of financial technology literature? and to evaluate the future research direction of financial technology literature? Design/methodology/approach: This paper adopts multiple software packages were employed, including Excel, VOSviewer and RStudio. VOSviewer is used to build networks of scientific articles, journals, researchers, organizations, countries, and terms. Findings: the analysis of the Bibliographical focusing on sources, depends on five clusters, the Sustainability (Switzerland), Financial Innovations, Investment Management, Europe journal of finance and Electronic Commerce Research and Applications the lead journals in the clusters. Originality: This paper contributes to the literature based on 4 classes of research streams in Fintech namely Fintech, block chain, Artificial intelligence and Innovation which are represent the most future upcoming trends
Keywords : FinTech, Bibliometric approach, Blockchain, the articfiucual intelegence innovation.
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Purchasing Power Parity: A Bibliometric Approach for the Period of 1935-2021
Authors : Alsmadi, A., Al-Gasaymeh, A., Alrawashdeh, N. (2022). Quality-Access to Success
Abstract : The Purchasing Power Parity (PPP) is about the long length of the half-life of the real exchange rate measured by the deviations from PPP, which is unjustified by the monetary and financial shocks. PPP is widely discussed in developed and developing countries since decades. The aim of this study is to declare the most published articles on PPP by authors, countries, institutions and Journals in Scopus database using RStudio, VOSviewer, and advanced Excel software packages to formulate the analysis. The results show that, 1003 authors have published articles on PPP with 775 papers up to 2021. Where, Rogoff (1996) and Pedroni (2001) received the highest cited papers with 1378 and 918, respectively. While, the most countries tested the validity of PPP is the United State with 248 documents and Applied Economics Letters Journal was the most sources for PPP with 86 papers.
Keywords : Purchasing power parity, Bibliometric Approach
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The Effect of Artificial Intelligence Using Neural Network in Estimating on An Efficient Accounting Information System: Evidence from Jordanian Commercial Banks
Authors : Qasaimeh, G., Udah, R., Al-Gasaymeh, A. (2022). IEEE Explorer
Abstract : Neural network is a new topic of great importance, because of the change that it causes in the performance in the accounting profession and the relevance of accounting information. Current study aims to examine the impact neural network on an efficient accounting information system on the Jordanian commercial banks. Collecting date for 13 Jordanian commercial banks listed on the Amman Stock Exchange. The primary was obtained using a questionnaire includes all employees in the accounting departments, internal auditors, and programmers. The study distributed (195) questionnaires to the entire sample members electronically. It is found that the neural networks used by Jordanian commercial banks contribute to increasing the efficiency of its accounting systems, and providing management with basic accounting information. Moreover, the neural networks used by Jordanian commercial banks are distinguished by their ability to analyze contribute to raising the efficiency and ability of workers to develop and progress, and provide management and stakeholders with information that is consistent with the needs of customers.
Keywords : Artificial Intelligence, Neural Network, Accounting Information System
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Expert Systems and Neural Networks and their Impact on the Relevance of Financial Information in the Jordanian Commercial Banks
Authors : Qasaimeh, G, Al-Gasaymeh, A, Kaddumi, T, Kilani, Q (2022). IEEE Explorer
Abstract : The current study aims to discern the impact of expert systems and neural network on the Jordanian commercial banks. In achieving the objective, the study employed descriptive analytical approach and the population consisted of the 13 Jordanian commercial banks listed at Amman Stock Exchange-ASE. The primary data were obtained by using a questionnaire with 188 samples distributed to a group of accountants, internal auditors, and programmers, who constitute the study sample. The results unveiled that there is an impact of the application of expert systems and neural networks on the relevance of financial information in Jordanian commercial banks. It also revealed that there is a high level of relevance of financial information in Jordanian commercial banks. Accordingly, the study recommended the need for banks to keep pace with the progress and development taking place in connection to the process and environment of expertise systems by providing modern and developed devices to run various programs and expert systems. It also recommended that, Jordanian commercial banks need to rely more on advanced systems to operate neural network technology more efficiently.
Keywords : Expert Systems, Neural Networks, Relevance, Financial Information, Banks.
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The COVID-19 Pandemic and Its Impact on Consumer's Interaction on Mobile Banking Application: Evidence from Jordan
Authors : Aldiabat, K., Al-Gasaymeh, A., Alebbini, M. M., Alsarayreh, A. A., Alzoubi, A. A., and Alhowas, A. A. (2022). International Journal of Data and Network Science.
Abstract : Since COVID-19 became a pandemic, the global economy has been dramatically affected. Not just that, the consumer behavior in the retail market has also changed. This paper aims to examine the effect of the coronavirus crisis on consumer behavior in retail services. The paper will focus on retail banking services, especially the Jordanian banking sector. The goal of the study was achieved by conducting a survey among Jordanian consumers in the retail banking sector, which was done using questionnaires, a sample of 240 retail customers from 14 valid participants. The paper brings new insight into how the pandemic affected retail banking services and proves the acceptance of online and banking in the conceptual model. The results show that the variables around attitudes toward the internet and mobile banking were directly and positively affected by the variables related to the perception of the pandemic's impact on the consumer's lifestyle. Other variables such as the safety of using online and mobile banking services and phones also contributed to this rise in a positive attitude. The Trust in Mobile and internet banking has several administrative and social implications, which were also discussed. Because new consumption behavior models are being developed, mobile and internet services could prevail even after the later stages of the epidemic. Initiatives to provide online educational programs, especially financial courses, should be intensified by the banks in Jordan to enable their customers to be familiar with the use of the banks' online banking services. They should enhance their communication with their customers and offer new products and services while also showing flexibility while negotiating to refinance and loaning terms.
Keywords : Mobile application, consumer acceptance, ease of use, trust and security, service quality.
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Does Country Risk Affect Foreign Direct Investment: Evidence from Emerging Countries
Authors : Al-Gasaymeh, A., Almahadin, H.A., Alrawashdeh, N., Alzoubi, H., and Al-ma’aytah, M. (2022). Does County Risk Affect Foreign Direct Investment: Evidence from Emerging Countries. Academy of Accounting and Financial Studies Journal, 26(1): 1-13.
Abstract : The goal of this research is to look at the relationship between country risk and foreign direct inflows in 20 emerging economies from 2010 to 2019. A variety of indicators are used to reflect all aspects of country risk, including political risk, credit ratings, debt indicators, debt in default, short-term financing, financial performance, and forfaiting. Panel data analysis using the FMOLS technique was used for this. The empirical findings reveal that the bulk of country risk indicators negatively impact the foreign direct investment. According to the research, emerging countries' economic crisis has resulted in significant financial concerns. It is undeniable that countries with minimal political risks have more efficient economies. This shows that, in order to attract more international investment, governments should play a key role in decreasing country risk.
Keywords : FMOLS Regression, Country Risk, FDI, Emerging Markets.
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Determinants of Commercial Banks’ Profitability in Volatile Environments: Evidence from Generalized Method of Moments
Authors : Al-Gasaymeh, A., Almahadin, H.A, Alnaimi, A., Alzoubi, H., and In’airat, M. (2022). Determinants of Commercial Banks’ Profitability in Volatile Environments: Evidence from Generalized Method of Moments. Academy of Accounting and Financial Studies Journal, 26(2): 1-14.
Abstract : The paper is a study that assesses the prime factors that determine the profitability in the banking industry, focusing on banks in volatile environments in the MENA countries for the timeframe 2010-2019. These factors will be categorized into internal and industry external factors i.e. macroeconomics, country risk and bank related factors. As the bank's proxy for profitability, we consider the return on average equity, return on average assets and net interest margin. The empirical findings are consistent with the expected results. Political risk, credit ratings, corruption, concentration ratio and efficiency, and the economic growth have influence on bank profitability, on return on average equity, return on average assets and net interest margin.
Keywords : Volatile Environment, GMM, Bank Profitability, Banking System, Volatile Environments, GMM.
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The Role of Supply Chain Integration and Agile Practices in Improving Lead-Time During Covid-19 CRISIS
Authors : Haitham M. Alzoubi, Hamzah Elrehail, Jalal Rajeh Hanaysha, Anwar Al-Gasaymeh, Raid Al-Adaileh International Journal of Service Science, Management, Engineering, and Technology. ISSN: 1947-959X.
Abstract : Long lead time is hurting the competitiveness of the supply chain, while the shorter is considered to be better in order to add value to the customer and to improve the supply dependability. Supply chain integration increases the coordination and shortens the processes. Agile practices also enable the supply chain to be more responsive to market variability. The aim of this research is to investigate the impact of supply chain integration and agile practices on lead-time reduction at Dubai HealthCare City. An empirical survey has been conducted in which the data were retrieved from 150 respondents and then analyzed using SPSS to examine the model. The result also showed a positive relationship between supply chain integration and lead-time reduction. Meanwhile, results indicated a positive relationship between agile practices on lead-time reduction. The study recommends promoting companies’ capabilities through flexibility and information sharing to achieve supply chain integration and agile practices such as responsiveness and alertness.
Keywords : Supply Chain, Agile Practices and Covid-19 CRISIS
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The Effect of Banking Industry Development on Economic Growth: An Empirical Study in Jordan
Authors : Almahadin, H. A., Al-Gasaymeh, A., Alrawashdeh, N., and Abu Siam, Y. (2020). The Effect of Banking Industry Development on Economic Growth: An Empirical Study in Jordan. Journal of Asian Finance, Economics and Business, 8(5):325-334.
Abstract : This study aims to investigate whether economic growth is elevated by banking industry development in Jordan. The study adopts time-series econometric methodologies, which comprise the bounds testing approach within the autoregressive distributed lag (ARDL) and the conditional causality analysis. Consistent with the assumptions of the adopted methodology, the study utilized annual time-series data for a relatively long period of thirty-nine years, between 1980 and 2018. The empirical results show that Jordan’s economic growth is strongly responsive in respect to any changes in banking industry development. Also, the results reveal the harmful impact of rising lending interest rate; as this rate increases, economic growth will decrease. The findings are in line with the conceptual arguments of the supply-leading hypothesis, which confirmed that banking development is considered as one of the main pillars that have stimulating effects on economic growth. The evidence of the current study may provide important implications for policymakers and bankers. Those professionals should work to maintain a stable regulatory system that enhances the banking system function in activating economic growth. Also, a considerable focus should be placed on designing a steady interest rate policy to avoid the inherently undesirable impacts of high-interest rates on the Jordanian economy.
Keywords : Banking Industry, Economic Growth, ARDL, Conditional Granger Causality, Jordan
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Measuring risk exposure in the banking sectors: evidence from Gulf Cooperation countries.
Authors : Anwar S Al-Gasaymeh, Thair A Kaddumi, Ghazi M Qasaimeh. (2021). Journal of Financial Economic Policy
Abstract : Using capital asset pricing model (CAPM) and the Z-risk index based on weekly data, this study aims to estimate yearly unsystematic, total, three systematic and insolvency risks in the Gulf Cooperation Council (GCC) countries for the period 2010–2018. The findings of CAPM show positive systematic market risk exposure in all GCC countries for all years, which support the contribution of stock markets to bank prices and returns. The mixed signs of systematic interest rate and exchange rate risks in GCC countries provide hedging opportunities, diversification strategies and regional cooperation, which help risk managers to hedge and stabilize their portfolios against interest rate and exchange rate fluctuations. Therefore, it is necessary that managers and policymakers develop a monitoring system on factors affecting bank insolvency risks to avoid bankruptcies and insolvencies. Design/methodology/approach – This study uses the three-factor CAPM and Z-risk index to measure six types of risks. The CAPM uses market information to estimate the sensitivity of banks to the fluctuations of equity markets, debt markets and foreign exchange markets. Sharpe (1964), Lintner (1965) and Treynor (1965) developed a single-factor CAPM and the coefficient of the model was called systematic market risk. The single-factor CAPM highlights stock markets as the only non-diversifiable source of systematic risks, whereas Stone (1974) and Jorion (1990) highlighted interest rate and exchange rate fluctuations as the other types of non-diversifiable systematic risks. The following functional form in equation (1) estimates five types of risks using CAPM. Findings – The findings of CAPM show positive systematic market risk exposure in all GCC countries for all years, which support the contribution of stock markets to bank prices and returns based on CAPM theory. The mixed signs of systematic interest rate and exchange rate risks in GCC countries support hedging opportunities and diversification strategies which may help risk managers to hedge and stabilize their portfolios against the fluctuations of interest rate and exchange rate. Although, this policy may decrease the profits of banking sectors but at the same time it would stabilize the portfolios and prevent bankruptcies and big losses because of the fluctuations of interest rate. Moreover, a bank has a better chance to have more liquidity position during financial crises because of the diversifications into different regional markets.
Keywords : Risk exposure, Z-risk index, CAPM, GCC bank
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Does Country Risk Affect Banking Efficiency: Empirical Evidence from Turkey and Selected Countries from the European Union
Authors : Anwar Al-Gasaymeh, Miral Samarah (2020). Global Business Review
Abstract : This study explores the readiness of the Turkish banking sector for its accession to the European Union (EU). Obviously, the job is not finished yet, with the challenges of introducing country risk variables and their impact on banking efficiency. Although efficiency analysis remains an important issue in economic studies to answer whether or not the Turkish banking sector is ready for the accession to the EU. Therefore, this study aims to investigate the impact of country risk levels on banking efficiency in Turkey and the EU in the recent year, using stochastic frontier analysis for a parametric technique for the period 2010–2018. In the second stage, efficiency measures are used to investigate the effect of country risk and macroeconomic variables, applying the generalized method of moments. The results suggest that the banking sector operating in a country with low risk tends to perform more efficiently.
Keywords : Banking Efficiency, country risk, SFA, GMM. Turkey and European countries.
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The Role of Economic Freedom in Economic Growth: Evidence from the MENA Region
Authors : Al-Gasaymeh, A., Almahadin, H. A., Alshurideh, M., Al-Zoubi, N.A., and Alzoubi, H. M. (2020). The Role of Economic Freedom in Economic Growth: Evidence from the MENA Region. International Journal of Innovation, Creativity and Change,13(10): 759-744.
Abstract : This study investigates the economic freedom and economic growth nexus in a board of 13 MENA countries from 2010 to 2018. Based on the Heritage Foundation, five factors have been adopted to capture all of the economic freedom dimensions, namely: security of property rights, freedom from corruption, government spending, business freedom, and monetary policy. To capture the endogeneity issue, an empirical analysis has been conducted by adopting the GMM framework. The focal point of this article is to evaluate which dimension of economic freedom adds to economic growth in the MENA countries, and to what degree. The empirical results reveal that economic freedom plays an enhancing role in the economic growth of the sampled economies. In other words, the economic growth is affected positively through the dimensions of economic freedom. Moreover, the empirical outcomes signal that the current economic growth rate will be affected significantly by the growth rate of the past year. Thus, the findings of the present investigations might have precious implications for the authorities and policy-makers in the sampled countries.
Keywords : Economic Freedom, Economic Growth, MENA Economies, GMM Framework
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Loyalty Program Effectiveness: Theoretical Reviews and Practical Proofs.
Authors : Haitham Alzoubic and Barween Al Kurdd Muhammad Alshurideha*, Anwar Gasaymehb, Gouher Ahmedc (2020). Uncertain Supply Chain Management
Abstract : Loyalty programs are widely used by organizations as a structured customer relationship management (CRM) tool to build and extend customer-supplier relationship. Although a large number of benefits are offered through them to both companies and consumers, loyalty programs face a set of planning and implementation pitfalls. Scholars or practitioners rarely discuss such pitfalls. Thus, this paper intends to add further values to the current literature by exploring/investigating the main loyalty scheme pitfalls, both theoretically and practically. The study explores a set of loyalty program planning problems and some of the execution’s drawbacks, including clear aim need, loyalty program design, budgeting and experienced employee involvement. In addition to loyalty programs benefits and rewards offered, loyalty programs target customer selection problems using loyalty program promotional tools. For the study, 161 managers and employees who were involved in loyalty program planning and execution were surveyed. Smart-PLS was used to test the developed model and hypotheses. The study found that all studied loyalty program elements identified affected their planning and implementation. However, some of these elements where seen important to be considered when planning loyalty schemes, such schemes’ benefits and rewards offered were still not planned properly and did not meet customer needs or even expectations and, in most cases, the loyalty programs’ aims were not clear to all their stakeholders. The paper also provides additional discussion about additional issues of loyalty schemes planning and execution problems and proposes a set of solutions and recommendations, which might highlight some of the future venues with this regard.
Keywords : Loyalty Program Effectiveness, benefits and rewards, target customer.
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Schumpeterian Entrepreneurship Theory: Evolution and Relevance
Authors : Tariq Mehmood, Haitham M Alzoubi, Al-gasaymeh, A. and G Ahmed (2018) Academy of Entrepreneurship Journal.
Abstract : This article sheds light on the Schumpeterian entrepreneurship in the historical and contemporary context, J.A. Schumpeter (1883-1950) propounded a theory of entrepreneurship which was at quite variance with the then commonly accepted Marshallian entrepreneurship theory of entrepreneurship as establishment and successful or profitable organization of business organizations. As against this, Schumpeters entrepreneurship theory associates entrepreneurship not only with organizations of businesses, but also with Innovations or continuous business development. Schumpeter costs and entrepreneurship as the central factor of economic development. The result is not a doom of capitalism foreseen by least Marx, but a progressive free-enterprise system. Thus, it is the human factor which emerges as the dominant factor in business and economic development. The theory is of contemporary relevance, as evident from the current entrepreneurship and micro enterprises to combat multiple socio-economic problems.
Keywords : Joseph A. Schumpeter, Entrepreneur, Entrepreneurship, Innovation, Theory of Economic Development, Economic Development, United Arab Emirates.
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Co-integration Test and the Long-Run Purchasing Power Parity: A Case Study of India and Pakistan Currencies
Authors : Al-Gasaymeh, A., Gouher Ahmed, Haitham Alzoubi. (2019). Theoretical Economics Letters
Abstract : This is a study of the application of the purchasing power parity propositions to the interesting cases of India & Pakistan through the Co-integration method. The results of the Co-integrations of both the nations demonstrate that the exchange rates are more in tandem with price movements supporting PPP theorem. This is interesting given the near-and-far off relationship between India and Pakistan owing to historical and contemporary factors which does not hold an irrational exchange rate. It is good for the two important developing nations to expand their economic and trade relationship which is a win-win situation for both countries. The study also points to the need of the two countries, with extensive poverty still in spite of their nearly seven decades’ history of their development, to better manage their economies and currencies, the latter from fall and fall, which is dimming the international standing of their currencies. The study is a modest contribution to the literature on the Purchasing Power Parity theory with reference to the “special” cases of India and Pakistan.
Keywords : Purchasing power parity, Co-integration, India and Pakistan.
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Empirical Study on Sustainable Supply Chain Strategies and its Impact on Competitive Priorities: The Mediating Role of Supply Chain Collaboration
Authors : H Alzoubi, G Ahmed, A Al-Gasaymeh, B Kurdi. (2020). Management Science Letters
Abstract : Companies seek to adopt competitive strategies that achieve sustainable standards, not only in achieving economic success but also in serving society and preserving the environment at the same time. Pharmaceutical companies and their supply chains are facing increasing pressure to preserve the environmental because of the problems caused by medical waste, and it is necessary to show their role through their strategies in preserving the environmental and serving society as well. This study aims to investigate the relationship between sustainable supply chain strategies and supply chain collaboration and its effect on competitive priorities. The study investigates whether Jordanian Pharmaceutical companies incorporate the sustainability strategy into supply chain strategy, and whether that may impact its competitive priorities. The study population consists of (23) Jordanian Pharmaceutical companies. A structured questionnaire is designed and distributed among top managers in the surveyed companies. A structural equation Modeling technique is used to analyzed the data and provide the results. Analysis proves the relationship between sustainable supply chain strategies and supply chain collaboration, where companies are interested in attaining some achievements in the area of social environmental to gain some collaborative strategies with their partners in the supply chain. The study suggest that organizations may adopt the Triple Bottom Line (TBL) framework to evaluate their performance in a broader perspective and extend the collaboration with suppliers and customers through information sharing along the supply chain partners.
Keywords : Sustainable supply chain strategies, supply chain collaboration, competitive priorities.
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The Effect of Mobile Banking Application on Customer Interaction in the Jordanian Banking Industry.
Authors : Khaled Aldiabat, Anwar Al-Gasaymeh, Ameer K Rashid. (2019). International Association of Online Engineering
Abstract : Banks have changed from paper-based banking solutions provider to the latest of the technologies like mobile banking. Adoption of mobile-banking has received more attention in recent years, because there are more phones than computers in the market. But, like in any emerging technology, there exist barriers to the adoption of mobile banking services. This study will attempt to technically address these largely unfounded factors while helping to lay a roadmap for proper implementation of mobile banking technology in the Jordanian banking industry. The study found that Supportive Access factor of mobile banking is associated with the user satisfaction related to mobile banking.
Keywords : Mobile banking, customer interaction, banking industry.
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e-Service Quality and its Impact on Achieving a Value Added an Empirical Study at Private Universities in Jordan.
Authors : Haitham M Alzoubi, Majeda Abdo, Anwar Al-Gasaymeh, Ali A Alzoubi. (2019). Journal of Business and Retail Management Research. Journal of Business and Retail Management Research.
Abstract : This study addresses the gap of how businesses vary in quality services of its website by investigating the e-Service Quality and its impact on achieving students' value added at private universities in Jordan. A descriptive and quantitative methodology are used. To achieve the study objectives. A Likert scale questionnaire was designed and included (30) statements to collect data from the sample which consists of (480) respondents. Then, a statistical correlations and regression tools used to analyze data. The study showed that e-Service Quality related to achieving a student’s Value Added. Findings have also proved the impact of e-Service quality on achieving students' Monetary value and achieving students' Beneficial value. Multiple regression indicated that “adequacy of information” and “website design” have the highest impact on achieving Value added. We concluded that sophisticated content, user-friendly well-constructed, and professional university’s web design would improve students’ experience, and add much values to students.
Keywords : e-Service Quality, Value Added, Private Universities, Jordan.
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Bank Lending Channel and Efficiency: Evidence from Egypt
Authors : Al-Gasaymeh, A. Ahokr, A (2018). International Journal of Emerging Markets
Abstract : Purpose – The purpose of this paper is to examine the relevance of the bank lending channel (BLC) of monetary policy and the bank efficiency in Egypt. Design/methodology/approach – This paper examines the effectiveness of bank lending channel using generalized method of moments GMM model during the period from 1996 to 2014. Also, it uses stochastic frontier approach (SFA) to examine the bank efficiency in Egypt. Findings – This study supports the relevance of the BLC using panel data. Moreover, applying SFA, this paper computes cost efficiency taking account of both time and country effects directly. The finding suggests that banks with low inflation and high GDP tend to perform more efficiently. Research limitations/implications – The limitation of the study is examining one country only. Practical implications – The finding signals that the Central Bank of Egypt (CBE) should adjust interest rate in order to stabilize the bank loan supply. Social implications – It is important for the CBE and Egyptian banks because it highlights the importance of BLC.
Keywords : GMM, SFA, Banking Efficiency, bank lending channel, monetary policy.
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The Impact of Changes in the Qualitative Characteristics of Accounting Information on the Quality of Investment Decisions: A Field Study in the Brokerage Offices
Authors : A Alzoubi, A, Al-Gasaymeh, H Alzoubi (2018). The Journal of Economic and Management Perspectives (JEMP)
Abstract : The main purpose of this study is to identify the impact of changes in the qualitative characteristics of accounting information on the quality of financial decisions using the Statistical Analysis Program and the linear regression to test the hypotheses of the study at the significant level (0.05). A questionnaire was prepared and distributed to a specialized staff in brokerage offices licensed by the Securities Depository Center in Jordan and its clients. The results revealed that a significant impact of changes in the qualitative characteristics of accounting information on the quality of investment decisions by mediating the variable of changes that have occurred in the International Financial Reporting Standards IFRSs. Changes in qualitative characteristics have improved the quality of information in the financial reports of companies.
Keywords : Qualitative Characteristics, Accounting Information, Investment Decisions.
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Economic Freedom, Country Risk and Cost Efficiency in Jordan and the GCC Countries
Authors : Al-Gasaymeh, A. (2017). Global Business Review.
Abstract : Using data from 2003 to 2010, we examine the impact of economic freedom and country risks on the bank costs of potential Gulf Cooperation Council (GCC) union. In estimating a common frontier, this article employs Stochastic Frontier Approach (SFA) to control for country-specific variables, that is, economic freedom, country risk, macroeconomic conditions, bank accessibility and bank structure, for an unbalanced panel of 90 Jordanian and the GCC countries’ banks. This article further estimates bank efficiency levels in the potential GCC union member countries to shed some light on the capability and capacity of the banks to compete and survive within the future GCC union. We find that economic freedom helps in reducing potential bank costs. Enhancing economic freedom is crucial for the region to attract more investments and create a viable banking system. In order for the GCC members to have a successful union and achieve the objectives faster, it is important to have a similar level of economic performance, in particular in the banking sector.
Keywords : Economic freedom, country risk, SFA, Jordan, GCC
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Bank efficiency determinant: Evidence from the Gulf Cooperation council countries
Authors : Al-Gasaymeh, A. (2016). Journal in International Business and Finance.
Abstract : Using data from 2007 to 2014, we investigate the effects of inflation, unemployment rate and GDP per capita growth on bank efficiency for the Gulf Cooperation Council countries in an unbalanced panel consisting of 75 banks and 415 observations. Applying stochastic frontier estimation procedures, we compute cost efficiency taking account of both time and country effects directly. In second-stage regressions, we use the efficiency measures to investigate the influence of country risk variables and concentration ratio applying Generalized Method of Moments technique with respect to the impact of political risk, credit ratings and debt in default. The finding suggests that banks in countries with low country risk, and low concentration tend to perform more efficiently. Furthermore, a negative but insignificant relationship between total assets and bank efficiency reflects the fact that larger banks in developing countries suffer from diseconomies of scale.
Keywords : Efficiency, Country risk, SFA, GMM, GCC
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The Global Financial Crisis and International Trade
Authors : Ahmed, G., Al-Gasaymeh, A., Mehmood, T. (2017). Asian Economic and Financial Review
Abstract : The objective of the study is to study the global financial crisis of 2008 and its aftermath. The Great Recession, which is still found fluttering, and the consequences of the recession. As a result of the recession, the global economy is in a slowdown mode, impacting global trade in terms of magnitude and structure. The paper calls for pro-active regulatory structure including of Central banks and world bodies such as IMF, WB, and WTO need to awaken to their responsibility of straightening out international finance and trade.
Keywords : Global Financial Crisis, International Trade
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Macroeconomic Variables and Validity of PPP Theorem: An Examination of Panel Unit Root
Authors : Al-Gasaymeh, A., Kasem, J. (2015). International Journal of Technology, Innovation and Management (IJTIM)
Abstract : The main purpose of this paper is to examine the validity of purchasing power parity between a group of countries based on macroeconomics variables namely, high/low income and the highest GDP per capita over the period 2005Q1-2015Q4. Four types of panel unit root methods, namely Levin, Lin and Chu (LLC), ADF Fisher, PP-Fisher and Im, Pesaran and Shin (IPS) had been used to test the unit root in real exchange rates. The results of common unit root test LLC found evidence in favor of the validity of PPP. But the results of Im, Pesaran and Shin, ADF-Fisher and PP-Fisher unit root tests results failed to find evidence in the favor of validity of PPP for high/low income and GDP. Hence, this study fails to find evidence for both characteristics. Therefore, the debate of PPP remains elusive and the puzzle will continue.
Keywords : Purchasing Power Parity, Johansen Cointegration.
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Long-Run Purchasing Power Parity and Exchange Rates: Evidence from the Middle East
Authors : Al-Gasaymeh, A., Kasem, J. (2015). International Journal of Business and Finance Research
Abstract : This paper examines the validity of Purchasing Power Parity and investigates the market integration between Jordan and its major trading partners, namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. Unit root tests, Johansen co-integration test and a vector error correction model were employed to test data covering the period 2005Q1-2012Q4. The unit root tests demonstrated that all variables were integrated of order one. The results of co- integration tests showed that a co-integrating relationship existed between exchange rates, domestic and foreign price levels for four Gulf Cooperation Council countries. The two remaining countries, Oman and United Arab Emirates, do not have a cointegration relationship. For the vector error correction model, we found the error correction terms for Jordan with the Gulf Cooperation Council countries carried the expected sign. This suggests that whenever there is a deviation from the equilibrium co-integrating relationship, the exchange rate interacts in a dynamic fashion by adjusting to restore its long-run equilibrium. Finally, the models passed all the diagnostic checking. In conclusion, these results provide evidence that the Purchasing Power Parity model holds in the long run. The results also show the Jordanian economy is integrated with six trading countries.
Keywords : Purchasing Power Parity, Johansen Co-Integration, Vector Error Correction Model, Jordan and Gulf Cooperation Council
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Is Islamic Banking Concentrating? Does Competition Matter? Evidence from the United Arab Emirates
Authors : Al-Gasaymeh, A. (2016) European Journal of Economics, Finance and Administrative Sciences.
Abstract : This paper examines the concentration ratio and the competitiveness of the Islamic banking industry in the United Arab Emirates during the period 2005-2015 using structural and the non-structural approach. The results of concentration ratio and Panzar and Rosse 1987 revealed that Islamic banks less concentrated and operating under monopolistic competition. Thus, the finding indicates that Islamic banks in United Arab Emirates earned their revenue in a monopolistic competition condition. The findings draw the attention to the critical role of the United Arab Emirates among Gulf Cooperation Council countries in increasing competition in the banking sectors.
Keywords : Islamic Banking, Concentration, Panzar and Rosse, UAE.
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Strong and Weak Form of Purchasing Power Parity: The Case of Jordan and its Major Trading Partners
Authors : Al-Gasaymeh, A., Kasem, J. (2015). Journal of International Business and Economics, June 2015, Vol. 3, No. 1,
Abstract : The aim of this paper is to test two forms of purchasing power parity (PPP), specifically the strong form of PPP and the weak form of PPP between Jordan and its major trading partners namely, Japan, United Kingdom, Turkey, and United State, based on data covering the period of 2000M1-2012M12. First, this paper examines the strong form of PPP to test the stationarity of the real exchange rate. The results show that the real exchange rate in each country is nonstationary. This implied that the long-run PPP fails to hold for all countries. In the second stage, the Johansen cointegration test employed to test the weak form of PPP. The results of cointegration tests showed that there exists a cointegrating relationship for all the countries between exchange rate, domestic and foreign price levels. We conclude that the evidence of weak PPP is found between Jordan and its major trading partners. The unit-root tests of real exchange rates imposed proportionality and symmetry restrictions that nominal exchange rates and aggregate prices move together in a one-to-one fashion. The weak form of the PPP states that the nominal exchange rate and aggregate price ratios may move together in equilibrium, but the relationship need not necessarily be one-to-one. This paper found evidence for weak PPP but not for strong PPP, hence, the conditions of proportionality and symmetry restrictions may be one of the reasons that PPP not hold when being tested empirically.
Keywords : Purchasing power parity, strong and weak form of PPP, cointegration, Jordan
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Real Exchange Rate and Purchasing Power Parity Hypothesis: Evidence from ADF Unit Root Test
Authors : Al-Gasaymeh, A., Kasem, J., Alshurideh, M (2015). International Research Journal of Finance and Economics ISSN 1450-2887 Issue 142 November.
Abstract : The purpose of this paper is to investigate the role of country characteristics on Purchasing Power Parity. This paper examined the stationarity of real exchange rate by using ADF unit root test for a group of countries classified into three groups; the first group is based on trade agreements; the second group is the top 25 inflation countries in the world and the last group is the same geographically located countries. We employed quarterly data from 2004Q1-2014: Q4. This paper concludes that PPP depends on the country’s characteristics. With this perspective, it is appropriate to investigate PPP among countries with similar characteristics but it is not appropriate for studying PPP among a more diverse group of countries.
Keywords : Purchasing Power Parity; Unit Root Test.
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Purchasing power parity and country characteristics: Evidence from Panel Data Tests.
Authors : Al-Gasaymeh, A., Kasem, J., (2015). Global Economy and Finance Journal Vol. 8. No. 2. September 2015. P
Abstract : The purpose of this paper is to move beyond the developed countries dichotomy to investigate the role of country characteristics on purchasing power parity. The distinction is to investigate whether trade, inflation and geographical (distance) contribute towards the validity of purchasing power parity. This requires a sample that includes developing countries because the former contain too little variation to address the question. The stationary attributes of real exchange rates are examined by using four types of panel unit root tests for a group of countries for the period 2004Q1-2014Q4. We conclude that purchasing power parity depends on the country’s characteristics with this perspective, it is appropriate to investigate purchasing power parity among countries with similar characteristics.
Keywords : PPP, country characteristics, panal data.
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Competition and Market Structure of Banking Sector: A Panel Study of Jordan and GCC Countries
Authors : Anwar Salameh Gasaymeh Zulkefly Abdul Karim Mariani Abdul Majid Mansor Jusoh (2014). Jurnal Ekonomi Malaysia 48(1) 2014 23 - 34 .
Abstract : This paper examines the market structure and competitiveness of the banking industry in Jordan and the GCC countries during the period 2003-2010, using a method proposed by Panzar and Rosse (1987). Using a static and dynamic panel data framework for a sample of 90 commercial banks, the empirical results revealed that banks in Jordan and the GCC countries have generated their revenue under monopolistic competition. This finding indicates that banks in Jordan are able to compete with the banking sector in the GCC countries. Therefore, the Jordanian government should seriously consider joining the GCC group of countries in the future.
Keywords : Competitive conditions; Panzar and Rosse model; Dynamic GMM; Banking sector of Jordan and GCC
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