Analysis of the Co-integration Relationship between Concentration and Profitability: An Applied Study on the Jordanian Banking Sector for the Period (2000-2020)

Alamro, H; Maaytah, S; Aljaafreh, A

Analysis of the Co-integration Relationship between Concentration and Profitability: An Applied Study on the Jordanian Banking Sector for the Period (2000-2020)

Alamro, H Maaytah, S Aljaafreh, A

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Publisher:: The University of Jordan
Publication Type:: Journal Article
Citation:: Jordan Journal of Business Administration, 2024, 20, (3), pp. 339-355
Issue Date:: 2024-01-01

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Field	Value	Language
dc.contributor.author	Alamro, H
dc.contributor.author	Maaytah, S
dc.contributor.author	Aljaafreh, A
dc.date.accessioned	2025-04-07T05:31:12Z
dc.date.available	2025-04-07T05:31:12Z
dc.date.issued	2024-01-01
dc.identifier.citation	Jordan Journal of Business Administration, 2024, 20, (3), pp. 339-355
dc.identifier.issn	1815-8633
dc.identifier.issn	2308-6149
dc.identifier.uri	http://hdl.handle.net/10453/186753
dc.description.abstract	This study investigates the relationship of co-integration between concentration and profitability in the Jordanian banking market for the period (2000-2020). The Herfindahl-Hirschman Index (HHI) and the market-share index for the four largest banks (CR4) were used for the following variables (assets, deposits and credit) to represent concentration in the banking sector. In addition, profitability was represented in two indicators: the rate of return on owners' equity (ROE) and the rate of return on assets (ROA). The study concluded that there is a co-integration relationship between concentration indicators and profitability indicators. There is a negative significant effect of concentration in assets on profitability in the long term and there is a positive significant effect of concentration in deposits and credit on profitability.
dc.language	en
dc.publisher	The University of Jordan
dc.relation.ispartof	Jordan Journal of Business Administration
dc.relation.isbasedon	10.35516/jjba.v20i3.318
dc.rights	info:eu-repo/semantics/openAccess
dc.title	Analysis of the Co-integration Relationship between Concentration and Profitability: An Applied Study on the Jordanian Banking Sector for the Period (2000-2020)
dc.type	Journal Article
utslib.citation.volume	20
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology
utslib.copyright.status	open_access	*
dc.date.updated	2025-04-07T05:31:11Z
pubs.issue	3
pubs.publication-status	Published
pubs.volume	20
utslib.citation.issue	3

Abstract:

This study investigates the relationship of co-integration between concentration and profitability in the Jordanian banking market for the period (2000-2020). The Herfindahl-Hirschman Index (HHI) and the market-share index for the four largest banks (CR4) were used for the following variables (assets, deposits and credit) to represent concentration in the banking sector. In addition, profitability was represented in two indicators: the rate of return on owners' equity (ROE) and the rate of return on assets (ROA). The study concluded that there is a co-integration relationship between concentration indicators and profitability indicators. There is a negative significant effect of concentration in assets on profitability in the long term and there is a positive significant effect of concentration in deposits and credit on profitability.

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http://hdl.handle.net/10453/186753