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

Abstract

The Integrative Relationship Between Traditional and Modern Performance Measures: An Applied Study on Commercial Banks Listed in Amman Stock Exchange

Author(s): Mohammed Jamal AlZou'bi, Laith Faris Abu KHader, Emad Yousif Ahmed, Ammar Daher Bashatweh

The research aims to explain the integrative relationship between modern performance measures and the traditional performance measures of Jordanian banks listed in the ASE. The study sample consisted of 13 commercial banks for the period 2013 - 2018. The financial statements of these banks were used during the study period to extract the necessary data for our study. In this study the main measures of the traditional performance (ROA, ROE, ROI, EPS), and the main measures of the modern performance (EVA, MVA, SVA, TSR). The study showed a statistically significant relationship between the Traditional Performance Measures (TPM) and the modern performance measures (MPM) among the commercial banks listed in the ASE, where the researchers believe that such a relationship enhances the integration of the metrics and the two measures(modern and traditional) provides information that helps investors to predict the bank's future performance. The study recommended the need for Jordanian banks to disclose the modern measure ratios in financial statements to provide a clear knowledge to the users of accounting information on the performance of banks.

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