The Impact of Other Comprehensive Income Items on Financial Performance: Case of Jordanian Commercial Banks

Adul Aziz Saymeh, Ayman Mansour Khalaf ALkhazaleh* and Eman Marwan Musallam
Additional contact information
Adul Aziz Saymeh: Middle East University, Jordan
Ayman Mansour Khalaf ALkhazaleh*: Middle East University, Jordan
Eman Marwan Musallam: Middle East University, Jordan

The Journal of Social Sciences Research, 2019, vol. 5, issue 4, 881-893

Abstract: This study aims to determine the effect of the independent variable other comprehensive income on the dependent variables represented by the financial performance of commercial banks. Researcher has studied the case of Jordanian Commercial Banks during the period 2012 to 2017. The study sample consists of 13 Jordanian commercial banks. The study independent variable was given by the quotient of other comprehensive income on net income. The ratios: financial performance by return on assets, and return on equity were the two dependent variables. Study hypotheses were tested by the simple regression equation and T- test. It was found that there was a statistically significant effect of other comprehensive income on the financial performance as measured by the return on assets and return on equity. This significance can be attributed to the increasing weight of other comprehensive income items which makes the value of other comprehensive income an indicator of profitability and efficiency of banks and means of maximizing their wealth. It is recommended that Amman Stock Exchange, Securities Commission and the Companies Control Department, to urge the companies listed on ASE to increase the awareness of companies’ management about the importance of other comprehensive income concept.

Keywords: Other comprehensive income financial performance; Return on assets; Return on equity. (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.arpgweb.com/pdf-files/jssr5(4)881-893.pdf (application/pdf)
https://www.arpgweb.com/journal/7/archive/04-2019/4/5 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arp:tjssrr:2019:p:881-893

Access Statistics for this article

The Journal of Social Sciences Research is currently edited by Dr. Paola Magnano

More articles in The Journal of Social Sciences Research from Academic Research Publishing Group Rahim Yar Khan 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Managing Editor ().