The purpose of this paper is to provide a critical study over enterprise risk management. For thi... more The purpose of this paper is to provide a critical study over enterprise risk management. For this, the paper has reviewed theoretical and empirical literature in management of risk. Theoretical literature depicts that no theory can explain about the risk management techniques alone. While empirical literature providesthe importance of enterprise risk management to be used in the organization for managing the risk, exist in portfolio structure of the organization. The paper besides that also provides theoretical and empirical literature and depicts about the effect on working of the organization by implementing the enterprise risk management. The paper has discussed many theories on the implications on organization. The paper briefly discusses about how the performance of organization structure, firm value, default risk perspective, and disclosure requirement would be affected due to implication of enterprise risk management model. The paper has discussed the importance of technique...
The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit De... more The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit Default Swaps (CDS) by hundred basis points and severe liquidity crunch in the financial sector of the United States. The recession phase highlighted the importance of the liquidity for the investors and underlined the importance of understanding the connection between the liquidity of the market and the credit markets. In depth, this study tries to understand the relation between the liquidity risk in the CDS market and the credit risk. Along the same line of this study, a study conducted on the different Swiss and German companies revealed that credit risk is not the direct originator of the liquidity risk, but it created by a negative credit shock. In addition, this paper focuses on the causes that intensified the global crisis of (2007) as well as the macro-prudential policies are highlighted that will prevent a similar type of crisis in the future.
The financial economics literature contains numerous research papers which examine issues that co... more The financial economics literature contains numerous research papers which examine issues that concern the banking industry. One of these issues is banking competition. Indeed, this issue is important because of its implications to financial stability and the growth of the borrowing firms. The purpose of this paper is to assess the competitive behavior of the Jordanian banking sector during the period ranging from 1999 to 2008 using the non-structural test developed by Panzar and Rosse. In more specific terms, this paper examines the overall competitive condition during the period 1999 – 2008 and how it has evolved over time. Based on the empirical findings, it is expected that a number of policy recommendations may be provided. The objective of these recommendations is to enhance the regulation of the banking sector in Jordan and improve their performance.
The Capital Assets Pricing Model is considered to be a centerpiece in modern finance due to its i... more The Capital Assets Pricing Model is considered to be a centerpiece in modern finance due to its intensive use in both financial management and portfolio management. A large number of papers examined the determinants of systematic risk. The objective of this research is to answer the following questions: are emerging financial market and developed stock markets exposed to the same financial factors that affect systematic risk value? Amman Stock Exchange is taken in this study as a representative of emerging Arab financial markets. Moreover, do macroeconomic factors that affect International systematic risk value have the same effect on company’s systematic risk value? Based on a panel approach it was found that several factors including size, financial leverage, government deficit and inflation rate significantly affect a company’s systematic risk value.
This research aimed at investigating the effect of smoothening on stock market response. To accom... more This research aimed at investigating the effect of smoothening on stock market response. To accomplish this objective, the smoothening was testing with different parameters related to stock market index for both industrial and services sectors. Moreover, the relationship of smoothening relation was tested with total assets and size of the company. Different methods were applied to perform these tests.
The current study intends to examine validity of Capital Asset Pricing Model in Istanbul Stock Ex... more The current study intends to examine validity of Capital Asset Pricing Model in Istanbul Stock Exchange with special orientation to the cement industry and the power and distribution sector. The present paper presents the background of the research area and analyses the prior academic research and analysis conducted on examination of the validity of the Capital Asset Pricing Model in particularly the Istanbul Stock Exchange. The paper also clearly expounds the aims and objectives of studying the concept and comprehending the nature of association between the stock beta and profit. Furthermore, the study also explicates illustratively the importance of inspecting the compatibility for utilizing Capital Asset Pricing Model. The study therefore intends to select two different sectors under the Istanbul Stock Exchange and examine the implementation of the model for relating different risk return association in the industry. Again, the learner intends to associate diverse segments and pe...
Foreign currency exchange management is very crucial in firms with foreign deals. The objective o... more Foreign currency exchange management is very crucial in firms with foreign deals. The objective of this research was to study the management practices in Jordanian firms of foreign exchange management and its risk on these firms. A questionnaire was used to collect data using a stratified random sample. The results show that the firms interested with foreign currency exchange management as it forms more that 50% of its deals. Most of firms indicated that they have a policy for foreign exchange risk management depends on history records of exchange rate of JOD for US dolor.
This paper conducts a study of the influence of bank mergers on the financial performance of the ... more This paper conducts a study of the influence of bank mergers on the financial performance of the merged banks, using the takeover of Halifax Bank of Scotland (HBOS) by Lloyds TSB in September 2008 as an example. In spite of certain limitations, accounting ratios are still convenient and reliable analytical tool in all financial decision-making processes. The results show that the financial performance of Lloyds TSB in the areas of profitability after merger is not improved significantly. This result is inconsistent with previous studies that bank M&A results in improved profitability. However, it would be incorrect to say that M&A activities are completely negative (or positive) to banks.
International Journal of Economics and Financial Issues, 2018
The purpose of this paper is to provide a critical study over enterprise risk management. For thi... more The purpose of this paper is to provide a critical study over enterprise risk management. For this, the paper has reviewed theoretical and empirical literature in management of risk. Theoretical literature depicts that no theory can explain about the risk management techniques alone. While empirical literature providesthe importance of enterprise risk management to be used in the organization for managing the risk, exist in portfolio structure of the organization. The paper besides that also provides theoretical and empirical literature and depicts about the effect on working of the organization by implementing the enterprise risk management. The paper has discussed many theories on the implications on organization. The paper briefly discusses about how the performance of organization structure, firm value, default risk perspective, and disclosure requirement would be affected due to implication of enterprise risk management model. The paper has discussed the importance of technique...
The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit De... more The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit Default Swaps (CDS) by hundred basis points and severe liquidity crunch in the financial sector of the United States. The recession phase highlighted the importance of the liquidity for the investors and underlined the importance of understanding the connection between the liquidity of the market and the credit markets. In depth, this study tries to understand the relation between the liquidity risk in the CDS market and the credit risk. Along the same line of this study, a study conducted on the different Swiss and German companies revealed that credit risk is not the direct originator of the liquidity risk, but it created by a negative credit shock. In addition, this paper focuses on the causes that intensified the global crisis of (2007) as well as the macro-prudential policies are highlighted that will prevent a similar type of crisis in the future.
The objective of this research is to investigate the factors that affect the long term debt struc... more The objective of this research is to investigate the factors that affect the long term debt structure in industrial firms. The data was collected through Amman Stock Exchange Market for the period 2000-2010. Non parametric regression was used to measure the effect. The results showed that there is effect of adverse effect of profitability, while there is positive effect of fixed assets, and firm age. On the other hand, there was not effect for the growth and non-debt tax of the firm.
The objective of this research is to test the effect of financial ratios on the accomplished prof... more The objective of this research is to test the effect of financial ratios on the accomplished profit per share. The results of this research have showed that the predictability of accomplished profit per share was reached using the financial ratio, economical ratio and commercial ratio. The use of working capital and peremptory cash ratio and rapid cash were not useful to predict the accomplished profit per share.
The issue of the capital structure of firms in both the developed and developing worlds has attra... more The issue of the capital structure of firms in both the developed and developing worlds has attracted a large number of theoretical and empirical papers. This interest is expected given the fact that the debt to equity ratio affects the cost and availability of financing funds. In addition, due to the argument that information asymmetry might be more pervasive in developing countries, a growing number of empirical papers examine the determinants of capital structure of firms that are listed on emerging stock markets. This paper extends the capital structure issue to the listed Palestinian firms. Indeed, these firms have not had their fair share in the research literature. Moreover, it is common knowledge that Palestinian listed firms operate under severe political and economic circumstances. In other words, it would be interesting to report the capital structure (and its determinants) of firms which operate under unstable political and economic circumstances and compare the results ...
The issue of the financing choice of firms and their dividend policies are important because the ... more The issue of the financing choice of firms and their dividend policies are important because the cost of capital and hence the value of firms depend on these financial choices. Based on this, one can argue for the importance of understanding dividend policy in the developing countries. The primary objective of this paper is to determine whether or not listed Jordanian companies have stable cash dividend policy. In addition, this paper compares the cash dividend policy of the various sectors in Jordan. Based on the time period 1995 - 2005, and panel data analysis, the results indicate that listed Jordanian companies follow stable policies albeit at a lesser degree than companies which operate in advanced countries.
The purpose of this paper is to provide a critical study over enterprise risk management. For thi... more The purpose of this paper is to provide a critical study over enterprise risk management. For this, the paper has reviewed theoretical and empirical literature in management of risk. Theoretical literature depicts that no theory can explain about the risk management techniques alone. While empirical literature providesthe importance of enterprise risk management to be used in the organization for managing the risk, exist in portfolio structure of the organization. The paper besides that also provides theoretical and empirical literature and depicts about the effect on working of the organization by implementing the enterprise risk management. The paper has discussed many theories on the implications on organization. The paper briefly discusses about how the performance of organization structure, firm value, default risk perspective, and disclosure requirement would be affected due to implication of enterprise risk management model. The paper has discussed the importance of technique...
The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit De... more The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit Default Swaps (CDS) by hundred basis points and severe liquidity crunch in the financial sector of the United States. The recession phase highlighted the importance of the liquidity for the investors and underlined the importance of understanding the connection between the liquidity of the market and the credit markets. In depth, this study tries to understand the relation between the liquidity risk in the CDS market and the credit risk. Along the same line of this study, a study conducted on the different Swiss and German companies revealed that credit risk is not the direct originator of the liquidity risk, but it created by a negative credit shock. In addition, this paper focuses on the causes that intensified the global crisis of (2007) as well as the macro-prudential policies are highlighted that will prevent a similar type of crisis in the future.
The financial economics literature contains numerous research papers which examine issues that co... more The financial economics literature contains numerous research papers which examine issues that concern the banking industry. One of these issues is banking competition. Indeed, this issue is important because of its implications to financial stability and the growth of the borrowing firms. The purpose of this paper is to assess the competitive behavior of the Jordanian banking sector during the period ranging from 1999 to 2008 using the non-structural test developed by Panzar and Rosse. In more specific terms, this paper examines the overall competitive condition during the period 1999 – 2008 and how it has evolved over time. Based on the empirical findings, it is expected that a number of policy recommendations may be provided. The objective of these recommendations is to enhance the regulation of the banking sector in Jordan and improve their performance.
The Capital Assets Pricing Model is considered to be a centerpiece in modern finance due to its i... more The Capital Assets Pricing Model is considered to be a centerpiece in modern finance due to its intensive use in both financial management and portfolio management. A large number of papers examined the determinants of systematic risk. The objective of this research is to answer the following questions: are emerging financial market and developed stock markets exposed to the same financial factors that affect systematic risk value? Amman Stock Exchange is taken in this study as a representative of emerging Arab financial markets. Moreover, do macroeconomic factors that affect International systematic risk value have the same effect on company’s systematic risk value? Based on a panel approach it was found that several factors including size, financial leverage, government deficit and inflation rate significantly affect a company’s systematic risk value.
This research aimed at investigating the effect of smoothening on stock market response. To accom... more This research aimed at investigating the effect of smoothening on stock market response. To accomplish this objective, the smoothening was testing with different parameters related to stock market index for both industrial and services sectors. Moreover, the relationship of smoothening relation was tested with total assets and size of the company. Different methods were applied to perform these tests.
The current study intends to examine validity of Capital Asset Pricing Model in Istanbul Stock Ex... more The current study intends to examine validity of Capital Asset Pricing Model in Istanbul Stock Exchange with special orientation to the cement industry and the power and distribution sector. The present paper presents the background of the research area and analyses the prior academic research and analysis conducted on examination of the validity of the Capital Asset Pricing Model in particularly the Istanbul Stock Exchange. The paper also clearly expounds the aims and objectives of studying the concept and comprehending the nature of association between the stock beta and profit. Furthermore, the study also explicates illustratively the importance of inspecting the compatibility for utilizing Capital Asset Pricing Model. The study therefore intends to select two different sectors under the Istanbul Stock Exchange and examine the implementation of the model for relating different risk return association in the industry. Again, the learner intends to associate diverse segments and pe...
Foreign currency exchange management is very crucial in firms with foreign deals. The objective o... more Foreign currency exchange management is very crucial in firms with foreign deals. The objective of this research was to study the management practices in Jordanian firms of foreign exchange management and its risk on these firms. A questionnaire was used to collect data using a stratified random sample. The results show that the firms interested with foreign currency exchange management as it forms more that 50% of its deals. Most of firms indicated that they have a policy for foreign exchange risk management depends on history records of exchange rate of JOD for US dolor.
This paper conducts a study of the influence of bank mergers on the financial performance of the ... more This paper conducts a study of the influence of bank mergers on the financial performance of the merged banks, using the takeover of Halifax Bank of Scotland (HBOS) by Lloyds TSB in September 2008 as an example. In spite of certain limitations, accounting ratios are still convenient and reliable analytical tool in all financial decision-making processes. The results show that the financial performance of Lloyds TSB in the areas of profitability after merger is not improved significantly. This result is inconsistent with previous studies that bank M&A results in improved profitability. However, it would be incorrect to say that M&A activities are completely negative (or positive) to banks.
International Journal of Economics and Financial Issues, 2018
The purpose of this paper is to provide a critical study over enterprise risk management. For thi... more The purpose of this paper is to provide a critical study over enterprise risk management. For this, the paper has reviewed theoretical and empirical literature in management of risk. Theoretical literature depicts that no theory can explain about the risk management techniques alone. While empirical literature providesthe importance of enterprise risk management to be used in the organization for managing the risk, exist in portfolio structure of the organization. The paper besides that also provides theoretical and empirical literature and depicts about the effect on working of the organization by implementing the enterprise risk management. The paper has discussed many theories on the implications on organization. The paper briefly discusses about how the performance of organization structure, firm value, default risk perspective, and disclosure requirement would be affected due to implication of enterprise risk management model. The paper has discussed the importance of technique...
The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit De... more The recent global economic downturn that erupted in the mid 2007 saw an increase of the Credit Default Swaps (CDS) by hundred basis points and severe liquidity crunch in the financial sector of the United States. The recession phase highlighted the importance of the liquidity for the investors and underlined the importance of understanding the connection between the liquidity of the market and the credit markets. In depth, this study tries to understand the relation between the liquidity risk in the CDS market and the credit risk. Along the same line of this study, a study conducted on the different Swiss and German companies revealed that credit risk is not the direct originator of the liquidity risk, but it created by a negative credit shock. In addition, this paper focuses on the causes that intensified the global crisis of (2007) as well as the macro-prudential policies are highlighted that will prevent a similar type of crisis in the future.
The objective of this research is to investigate the factors that affect the long term debt struc... more The objective of this research is to investigate the factors that affect the long term debt structure in industrial firms. The data was collected through Amman Stock Exchange Market for the period 2000-2010. Non parametric regression was used to measure the effect. The results showed that there is effect of adverse effect of profitability, while there is positive effect of fixed assets, and firm age. On the other hand, there was not effect for the growth and non-debt tax of the firm.
The objective of this research is to test the effect of financial ratios on the accomplished prof... more The objective of this research is to test the effect of financial ratios on the accomplished profit per share. The results of this research have showed that the predictability of accomplished profit per share was reached using the financial ratio, economical ratio and commercial ratio. The use of working capital and peremptory cash ratio and rapid cash were not useful to predict the accomplished profit per share.
The issue of the capital structure of firms in both the developed and developing worlds has attra... more The issue of the capital structure of firms in both the developed and developing worlds has attracted a large number of theoretical and empirical papers. This interest is expected given the fact that the debt to equity ratio affects the cost and availability of financing funds. In addition, due to the argument that information asymmetry might be more pervasive in developing countries, a growing number of empirical papers examine the determinants of capital structure of firms that are listed on emerging stock markets. This paper extends the capital structure issue to the listed Palestinian firms. Indeed, these firms have not had their fair share in the research literature. Moreover, it is common knowledge that Palestinian listed firms operate under severe political and economic circumstances. In other words, it would be interesting to report the capital structure (and its determinants) of firms which operate under unstable political and economic circumstances and compare the results ...
The issue of the financing choice of firms and their dividend policies are important because the ... more The issue of the financing choice of firms and their dividend policies are important because the cost of capital and hence the value of firms depend on these financial choices. Based on this, one can argue for the importance of understanding dividend policy in the developing countries. The primary objective of this paper is to determine whether or not listed Jordanian companies have stable cash dividend policy. In addition, this paper compares the cash dividend policy of the various sectors in Jordan. Based on the time period 1995 - 2005, and panel data analysis, the results indicate that listed Jordanian companies follow stable policies albeit at a lesser degree than companies which operate in advanced countries.
Uploads
Papers by khaldoun al-qaisi