Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


The Effect of Debt Ratios on Earnings per Share Comparative Study between Arab Bank and Housing Bank 2005 - 2018

Author(s): Shireen Mahmoud Alali

The study aimed to identify the effect of Debt ratios, and total assets on the earnings per share in Arab Bank and Housing Bank, and to examine if there statistically significant differences in the Debt ratios and earnings per share between Arab Bank and Housing Bank. The descriptive and analytical approach was followed. The study reached conclusions that there is a convergence ratio between the Arab Bank and the Housing Bank, which was slightly higher than in the Arab Bank. The study, showed that there is no statistically significant differences in Debt ratios between Arab Bank and Housing Bank. There is no statistically significant effect of Debt on earnings per share in Jordanian Banks. The results also indicated that the average earnings per share was in favor of Arab Bank. The study showed that the percentage of profitability of shares in both Banks decreased during the study period. The results indicated that there are statistically significant differences in the profitability of the shares of Arab Bank and Housing Bank. In light of the results, the study recommended Banks to study the risks of Debt and the feasibility study of leverage in achieving the appropriate return and risk reduction. The study also recommended investors to invest in Banks with larger assets to increase earnings per share and reduce investment risks.

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