Geographic expansion and banks' risk : evidence from Jordan
Joint Authors
Kharabishah, Buthaynah
Daradikah, Dimah
Source
Arab Journal for Administration
Issue
Vol. 39, Issue 2 (30 Jun. 2019), pp.295-308, 14 p.
Publisher
League of Arab States The Arab Administrative Development Organization
Publication Date
2019-06-30
Country of Publication
Egypt
No. of Pages
14
Main Subjects
Topics
Abstract EN
This study investigates the impact of geographic expansion on banks’ risk and loan quality in Jordan during the period from 2000 to 2014.
Geographic expansion is measured by Shannon Entropy whereby the bank’s risk is measured by standard deviation of ROA, standard deviation of ROE and Z-score.
We find evidence that the banking industry in Jordan is highly concentrated and that although banks’ risk decreased with geographic expansion, loan quality was not affected.
In addition, the results point to an important issue, that banks in Jordan are only impacted positively by geographic diversification, despite being negatively affected by main economic sector diversification, and are not affected by diversification in the broader sector i.e., service sector.
These results are robust using alternative concentration measures and different estimation method
American Psychological Association (APA)
Kharabishah, Buthaynah& Daradikah, Dimah. 2019. Geographic expansion and banks' risk : evidence from Jordan. Arab Journal for Administration،Vol. 39, no. 2, pp.295-308.
https://search.emarefa.net/detail/BIM-995304
Modern Language Association (MLA)
Kharabishah, Buthaynah& Daradikah, Dimah. Geographic expansion and banks' risk : evidence from Jordan. Arab Journal for Administration Vol. 39, no. 2 (Jun. 2019), pp.295-308.
https://search.emarefa.net/detail/BIM-995304
American Medical Association (AMA)
Kharabishah, Buthaynah& Daradikah, Dimah. Geographic expansion and banks' risk : evidence from Jordan. Arab Journal for Administration. 2019. Vol. 39, no. 2, pp.295-308.
https://search.emarefa.net/detail/BIM-995304
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-995304