Financial Inclusion Indicators and their Effect on Corporate Profitability

Authors

Abdul Razzak Al-Chahadah, Amer Qasim, Ghaleb A. El Refae

 

Abstract

The main objective of this research is to figure out the effect of financial inclusion indicators on the profitability of firms looking specifically on the banking sector in Jordan. The researchers used the applied approach relying on data of financial inclusion indicators published by the Central Bank of Jordan, World Bank, and Jordanian commercial banks. A regression analysis is employed to examine the relationship between financial inclusion and bank profitability (Return on Assets). Findings of the study showed that there is a significant relationship between financial inclusion and firm profitability. The study recommends that Jordanian commercial banks should increase access to financial services through different channels and tools in order to increase financial inclusion in the Jordanian community.

DOI: 10.51958/AAUJBL2020V4I2P1