Moderating effect of bank performance on bank value: Evidence from Jordan
| Autor: | Mohammad Fawzi Shubita, Nahed Habis Alrawashedh, Jafer Marouf Alsawalhah, Eman Tawfiq Shaikh Saleh |
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| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | Banks and Bank Systems, Vol 19, Iss 3, Pp 91-101 (2024) |
| Druh dokumentu: | article |
| ISSN: | 1816-7403 1991-7074 |
| DOI: | 10.21511/bbs.19(3).2024.09 |
| Popis: | The relationship between bank performance and bank value is a crucial area of study, particularly in the context of emerging economies like Jordan. This study aims to investigate the moderating effect of bank performance on bank value, providing insight into how performance metrics influence overall valuation. The study employs a comprehensive methodological approach, utilizing panel data regression analysis to examine data from a sample of Jordanian banks over the period from 2014 to 2022. Key performance indicators such as Tobin’s Q, accounting conservatism, debt ratio, current ratio (CR), return on assets (ROA), and asset turnover are factors that influence bank value in the Jordanian market. The results reveal that bank performance significantly moderates the relationship between bank-specific factors and bank value. Specifically, the study finds that return on assets has a positive and statistically significant effect on bank value. The analysis reveals a significant positive correlation between bank value and profitability, as evidenced by a moderate positive correlation coefficient (0.26) between Tobin’s Q and ROA. However, weak or non-significant correlations are observed between bank value and accounting conservatism, debt ratio, and asset turnover. |
| Databáze: | Directory of Open Access Journals |
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