Analyzing the Effect of Liquidity Risk Management Indicators on The Financial Performance of Banks: Evidence from Jordan
The purpose of this study is to examine the association between liquidity risk management indicators and the financial performance of listed banks in Jordan during the period of 2013 to 2017, the necessary data was collected from the annual reports and World Bank. A sample of 15 listed Jordanian banks was considered with 75 observations. The results indicated that there is a significant and positive relationship between LR, LTA and ROA, while significant and negative relationship between CTD and ROA. Meanwhile, there is a significant and positive association between CR, LTA, LR and ROE, and significant and negative association between LTD, CTD, and ROE. Also, there is a positive and significant correlation between CR, CTD, LR and TQ, while negative and significant relationship between GDP and TQ. It is recommended that empirical studies should be taken the whole sectors in Amman stock exchange not only the banking sector.