The Effect of Liquidity, Administrative Efficiency and Capital Adequacy on the Profitability of Jordanian Banks listed on the Amman Stock Exchange

Abstract This study aimed to examine the impact of liquidity, administrative efficiency and capital adequacy on the profitability of Jordanian banks listed on the Amman stock exchange (AMS). The analytical descriptive approach was used to study the panel data method, and to rely on the random effect model. The variables of the study were liquidity, administrative efficiency and capital adequacy?s independent variables, and profitability as dependent variable. The sample of the study is all of the Jordanian commercial banks (JCB) listed on the AMS, which number thirteen. To achieve the objective of the study the annual data on the variables affecting the profitability of banks for the period (2010 to 2016) were analyzed. The study found the following results: there is a significant impact of liquidity, administrative efficiency and capital adequacy on the profitability of Jordanian banks listed at the AMS. There is a negative impact of liquidity on the profitability of Jordanian banks listed at the AMS. There is a positive impact of administrative efficiency on the profitability of Jordanian banks listed at the AMS. There is no impact of capital adequacy on the profitability of Jordanian banks listed at the AMS