القيمة الاقتصادية المضافة كوسيلة لتقييم الكفاءة المالية في البنوك التجارية الأردنية

Abstract EN

The study aimed to demonstrate the effect of Economic Value Added (EVA) as a measure to assess the financial efficiency in Jordanian commercial banks, by identifying its impact on: setting organizational goals, improving performance, managing the capital structure, analyzing the profitability of investment in stocks, building reward and motivating administrative staff systems in Jordanian Commercial Banks in the period (2015 - 2019).

The study population consisted of all the (13) Jordanian commercial banks listed in Amman Stock Exchange at the end of 2019, the study used the descriptive analytical approach, as well as, the standard analysis method.

To Achieve the objectives of this study, the appropriate statistical tests were used relying on EVIEWS software.

The main conclusions of this study were: there is a statistically significant effect at the level of significance (α≤ 0.

05) of EVA on setting organizational goals, improving performance, managing capital, analyzing the profitability of investment in stocks.

And no statistically significant effect at the level of significance (α≤ 0.

05) of EVA on building reward and motivating administrative staff systems.

And thus, overall a statistically significant effect at the level of significance (α≤ 0.

05) of EVA on assessing the financial efficiency in Jordanian Commercial Banks.

Several recommendations of the study were reached, the most important of which are: the EVA is a useful tool for executives that facilitate making choices in the decision-making process and must increase its value by focusing on the costs incurred and the efficiency achieved, and that the banks should strive to achieve high profits enough to be able to cover the interest costs, the rest will work to meet the shareholders' expectations regarding the return on investments held, and it is necessary to take care of all employees in the institution, as this is facilitated by building a reward plan scheme based on the added value that was created as an element in financial efficiency management system and basis for reward plans.