Academy of Accounting and Financial Studies Journal

1528-2635

Abstrait

The Impact of Competition on the Financial Performance of Islamic Banks Operating in Jordan

Nawaf Aljundi

This study aimed to identify the impact of competition in the Islamic banking market on the financial performance of Islamic banks operating in Jordan, the study sample consisted of Jordanian Islamic banks operating in Jordan. The study included the period (1992-2017), divided into three sub-periods according to the number of Islamic banks operating in each period, the study used competition as an independent variable and relied on the number of banks operating in the market as an indicator of the level of competition in the Islamic banking market, profitability, solvency, stock market prices, and the level of activity of Islamic banks were also used as dependent variables. One-Way analysis of variance was used to test the study hypotheses, and the Bonferroni test to determine which of the periods had the greatest effect on the differences between the mean of indicators, the study did not reach a prove or denial the existence of the impact of competition on the profitability of Islamic banks, on the solvency where one of the indicators was affected by each and the other was not, as for the prices of shares of Islamic banks, the study concluded that competition had no effect, Finally, the study concluded that competition had an impact on the activity rates in Islamic banks, the study recommended that Islamic banks offer new products and improve their services, and to increase their share of the banking market so that it can improve the indicators of profitability, solvency, and exploitation of its resources, and improve the levels of prices of its shares in the financial market.

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