أثر الرفع المالي على ربحية البنوك التجارية الأردنية

Abstract EN

The study aimed at identifying the effect of financial leverage on the profitability Jordanian commercial banks.

The study used the analytical descriptive method.

The data for the study variables were extracted during the period 2012-2016 from the Amman Stock Exchange website.

The sample of the study consisted of (13) Jordanian commercial banks.

The researcher also used the statistical package for social sciences (SPSS).

The study reached several results.

The most important of which is that there is no statistically significant effect at the level of (α= 0.05) of the financial leverage (with dimensions of debt to total assets ratio and debt ratio to ownership) on the profitability of Jordanian commercial banks (with its dimensions of return on assets and return on trade ownership) on Jordanian commercial banks.

The results also showed that there is a statistically significant effect at the level of (α= 0.05) of leverage (debt to total assets ratio and equity to debt ratio) on the return on assets in Jordanian commercial banks.

In addition, there is no significant impact at the level of (a = 0.05) of leverage (with dimensions of debt to total assets ratio and debt ratio to ownership) on the return on equity in Jordanian commercial banks.

Based on the results, the researcher recommended a number of recommendations, including the need for the management of Jordanian commercial banks to match the source of funding with the methods of employing funds, especially in the use of loans or bonds for financing in order to increase profitability and avoid risks.

There is also a need for gradual use of the financial leverage of Jordanian commercial banks in financing, especially by the start-up companies with a view to periodically evaluating the expansion of the leverage to ensure its use with positive effects on the banks' financial returns