The Impact of Expert Systems and Neural Networks on the Relevance of Accounting Information in the Jordanian Commercial Banks
Authors : Ghazi Qasaimeh; Anwar Qasaimeh; Thair Kaddumi; Qais Kilani, 2022 International Conference on Business Analytics for Technology and Srcurity (ICBATS).
Abstract : The current study aims to identify the impact of expert systems and neural network on the quality of relevance in Jordanian commercial banks. In achieving the objective, this study adopt descriptive analytical approach and the population consisted of the 13 Jordanian commercial banks listed on the Amman Stock Exchange. 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 sample of this study. The results showed that there is an impact of the application of expert systems and neural networks on the relevance of accounting information in Jordanian commercial banks. It also revealed that there is a high level of relevance of accounting information in Jordanian commercial banks. Accordingly, the study recommended the need for banks to keep pace with the progress and development taking place in the process and environment of expertise systems by providing modern and developed devices to run various programs and expert systems. It also recommended the need for Jordanian commercial banks to rely more on advanced systems in the operation of neural network technology
Keywords : Expert Systems, Neural Networks, Relevance, Financial Information, Banks.
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Banking Soundness – Financial Stability Nexus: Empirical Evidence from Jordan,
Authors : Almahadin, Hamed, Kaddumi, Thair, Al Kilani, Qais(2020), International Journal of Banks and Bank Systems, 15(3).
Abstract : The main purpose of this study is to investigate the relationship between financial stability and banking soundness in Jordan. For this purpose, the study mainly uses the FMOLS approach in addition to other analysis techniques and tools. The outcomes of the descriptive analysis show that the Jordanian financial system seems stable, and the indicators of banking soundness signal a steady and solid banking sector. The empirical results reveal that the majority of the banking soundness indicators have a positive impact on financial stability. This asserts that a sound banking sector plays a vital role in maintaining a stable financial system. However, the findings also indicate that a steady interest rate policy is one of the significant requirements for sustaining the stability of financial systems. Moreover, the response of financial stability with respect to economic growth changes is found to be positive and relatively high. On the fact of the importance of the topic under study, since financial stability is one of the major concerns of the authority bodies, the empirical findings can have very important policy implications for decision-makers.
Keywords : financial stability, banking soundness, FMOLS approach, cointegration tests, Jordan
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The Effect of Liquidity Risk Management on Jordanian Financial Sector – The Proxy of Commercial Bank
Authors : Kaddumi, Thair, Al Kilani, Qais(2020)., International Journal of Innovation, Creativity and Change, 14(1).
Abstract : The purpose of this paper is to determine the effect of Liquidity Risk Management on the Jordanian Financial Sector, as the success of any financial institution depends mainly on how it forecasts its liquidity needs and that might be through the structure of deposits or the surplus amount that determines performance will be at stake. To analyse this effect, liquidity and performance indicators of 13 listed Jordanian commercial banks were calculated and analysed. Results elucidated that loans to total deposit (L2) portrayed a high adverse impact on operating cash flow per share (OCFS) (-2.535) and no effect on earnings per share (EPS). Quick ratio (L1) was able to explain a positive change in banking sector performance indicators, as results indicated 0.543 on EPS and 2.193 on OCFS. Cash and investments to total deposits ratio displayed a positive impact on both performance indicators with a varying degree of impact (0.212 on EPS and 1.734 on OCFS). Regarding loans to total assets indicator, contemplated a negative low impact on EPS (-0.085) and high negative impact on OCFS (-1.569). As a conclusion, the impact of liquidity risk management indicators was higher on OCFS than on EPS, thus cash basis performance indicators are more relevant than accrual basis indicator to be employed for liquidity risk management strategy.
Keywords : Liquidity, Performance, Indicators, Accrual, Risk.
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Actual and Required Returns on Stocks, Evidence from Jordan
Authors : Al Kilani, Qais.(2017), International Business Management, 11 (11).
Abstract : The purpose of this paper is to determine whether the actual returns on stocks are deferent from or close to the required returns relative to the level of risk calculated by the CAPM so that the investors could actively manage their portfolios and hence identify the overpriced or underpriced stocks or to assist in predicting market trends. To analyze this relationship, actual and required returns of a sample of 40 stocks from among 220 stocks listed is Amman stock Exchange - ASE (First and Second Markets) were selected and analyzed, this sample represents all ASE market sectors for the period (2000 – 2016). Results showed that required returns of stocks are positively correlated to the systematic risk expressed by beta coefficients before and after 2008 - the beginning of world financial crisis-(to avoid the adverse effect of financial crisis on returns), negative co-relation of actual returns of stocks with beta coefficients, and negative correlation of actual returns with required returns. So relying on CAPM, the investors could not get benefit from this variation in returns and could not predict the mispriced stocks and then no capital gain will be obtained on this basis. This conclusion due to the fact that the stock market in Jordan is emerging market and is highly affected by rumors.
Keywords : Actual Return, Required Return, Systematic Risk, CAPM.
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Investigating into the Factors that Entice Indirect Foreign Investment – Empirical Analysis on Jordan (2000- 2014)
Authors : Al Kilani, Qais, Kaddumi, Thair(2016), European Journal of Scientific Research, 137(2).
Abstract : Due to the significant importance of foreign indirect investment to the Jordanian market in general and to Amman Stock exchange (ASE)in particular, this paper is an Endeavour to investigate into the factors that play a major role in attracting and retaining foreign indirect investment to ASE. Economical factors as well as financial factors were the independent variables of the study, while the volume of foreign indirect investment as a proxy for dependant variable. Carrying out regression analysis, the results indicated that Inflation rate as a proxy of economic factors posses a significant impact on foreign investments, while cash dividend to market value and stock turnover reflected also a significant positive effect on the volume of foreign indirect investment in ASE.
Keywords : Indirect Foreign Investment, Amman Stock Exchange.
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Co-linearity between Macroeconomic Drivers and Amman Stock Exchange Index- – Empirical Study for the Period (2005- 2013)
Authors : Al Kilani, Qais, Kaddumi, Thair(2015), International Journal of of Academic Research in Business and Social Sciences, 5(2).
Abstract : Index value is mainly reflected by stock prices related to companies listed in the market, as stock market index fluctuate in accordance to the change of stocks` prices pertaining to the index. Index is affected by domestic economic events as well as international effect. This study is an attempt to search into macroeconomic factors that are correlated with ASE index track. The major conclusions of the study imply that, macroeconomic variables do collectively own a high degree of positive and significant correlation with ASE index. But, by employing single regression, we found that inflation rate and rediscount rate are positively correlated with the index, while money supply. GDP, interest on loans and red are negatively and significantly associated with the changes in ASE index and the only two variables that showed no significant correlation with the market index were the industrial production and interest rate on deposit.
Keywords : ASE, Financial Crisis, Market Index, Co-linearity, Macroeconomics, Stocks.
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Apropos of Accounting Information indicators as determinants of cash dividend policy decision – A comparative study on Amman Stock Exchange (2001-2013)
Authors : Kaddumi, Thair, Al Kilani, Qais(2015). , International Journal of Economics and Finance, 7(4).
Abstract : Investor`s psychological behavior normally seek to invest in companies that are characterized by stable and positive dividend stream. Dividend policy is related to the decision of whether to distribute or not to distribute cash to shareholder. This type of decision is not taken in isolation from other related financial factors, as such decision is considered an integrated part of the company`s overall financial decisions. This study aims at investigating the apropos of accounting information indicators (financial indicators) and their role in determining cash dividend policy adopted by companies listed within the major sectors of Amman Stock exchange. Extracting the accounting information indicators pertaining to the three main sectors (Banking, Industrial and Services) of ASE, and by applying the simple linear regression statistical approach, the results indicated that the dividend policy adopted by the three sectors were mainly determined by accounting information indicators and that the impact of these indicators on cash dividend policy vary due to dissimilarity of the sectors` nature, whereas the results pointed out that different indicator affect different sector, which means that the impact of the accounting information is not identical on cash dividend policy decision.
Keywords : dividend policy, indicators, sectors, accounting information, ASE
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Cyclicality of Lending Behavior by Banking Sector for the period (2000-2013)
Authors : Al Kilani, Qais, Kaddumi, Thair(2015) , International Journal of Economics and Finance, 7(4).
Abstract : All economic sectors and individuals in Jordan rely mainly on banks to cover their shortage in money, thus banking sector plays a vital role in enhancing investments and economic development by standing in the middle between deficit units and surplus units. The major goal of this study is to identify what are the main drivers that impact lending behavior in Jordan. Using panel data and applying multi regression analysis on (13) Jordanian Conventional banks and two Islamic banks for the period (2000-2013) that are covered in this research, we found that lending behavior is statistically significantly affected by internal factors (DV, IR and net profit after tax) and it is also affected significantly by external factor (RR, GDP, IFR, OWDR and Red. R). Also the analysis indicated that OWDR and Red. R as a proxy for monetary policy did have a negative impact on lending behavior but not significantly proven. The study also reached to a conclusion that the amount of loans and advances extended by Jordanian banks is not affected by rate of interest. We recommend that Jordanian banks` management should take into consideration internal specific factors as well as external specific factor with more care while formulating their lending policy, moreover central bank in cooperation with the Jordanian banking sector should work in more productive relationship in order to enhance more the economic growth.
Keywords : lending behavior, monetary policy, banking sector, central bank
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The Impact of Microcredit on (ROA) and (ROE) Ratios of Jordanian Banks
Authors : Al Kilani, Qais.(2014). Banks, International Journal of Academic Research, 6 (5).
Abstract : The purpose of this paper is to determine whether the microcredit granted by Jordanian banks affects their profitability measured by ROA and ROE ratios in order to decide either to expand or to limit the amounts of microcredit. To analyze this impact, microcredit and profitability of a sample of thirteen Jordanian banks (which represent all Jordanian banks listed in Amman Stock Exchange ASE) for the period (2008-2013) after excluding Islamic banks because of their specific-characteristics were analyzed. Two measures of banks’ profitability have been utilized: the rate of return on assets (ROA) and the rate of return on equity (ROE). Results showed that the small business loans and real estate finance had significant impact on banks’ profitability while credit cards and financial leasing did not have. This conclusion is due to the fact that in Jordan many large corporations bankrupted during (2008- 2012) which forced the banking sector in Jordan to concentrate on secured collateral microcredit especially the real estate which had an increasing demand as protected from inflation.
Keywords : Bank profitability; Microcredit, ROA, ROE, Jordanian Banks
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DETERMINANTS OF BANK PROFITABILITY: EVIDANCE FROM JORDAN
Authors : Imad Z. Ramadan, Qais A. Kilani, Thair A. Kaddum (2011) International Journal of academic Research, ol. 3. No. 4.
Abstract : In this study, a balanced panel data set of Jordanian banks was used for the purpose of investigating the nature of the relationship between the profitability of banks and the characteristics of internal and external factors. For this purpose 100 observation of 10 banks over the period 2001-2010 were comprised. Two measures of bank’s profitability have been utilized: the rate of return on assets (ROA) and the rate of return on equity (ROE). Results showed that the Jordanian bank’s characteristics explain a significant part of the variation in bank profitability. High Jordanian bank profitability tends to be associated with well-capitalized banks, high lending activities, low credit risk, and the efficiency of cost management. Results also showed that the estimated effect of size did not support the significant scale economies for Jordanian banks. Finally, the estimation results indicated that individual effects on the profitability are present; this is concluded due to the fact that some of the differential slope coefficients are statistically significant.
Keywords : Bank profitability; panel data; Jordan
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