Identifying Financial Indicators Affecting Shareholders' Equity Using Factor Analysis - - Applied Study on Jordanian Islamic Bank
الكلمات المفتاحية:
Factor analysis، quantitative methods، financial market، shareholders' equity، Amman Stock Exchangeالملخص
This research aimed to identify the most prominent financial indicators affecting shareholders' equity at the Jordanian Islamic Bank, a financial institution listed on the Amman Stock Exchange, using factor analysis, And testing the impact of these factors on shareholders' equity.
The research employed a descriptive methodology to examine the financial indicators affecting shareholders' equity at the Jordanian Islamic Bank. It considered several financial indicators and factors as independent variables and shareholders' equity as the dependent variable. Data was collected annually from the Securities Depository Center website at the Amman Stock Exchange between 2005 and 2024 and analyzed to test the proposed hypotheses.
The results showed that the financial indicators affecting shareholders' equity can be summarized into three factors: investments indicators, market valuation ratios, and profitability indicators. A statistically significant relationship was also found between most of the studied indicators (the independent variables) and the return on equity. Furthermore, the variables (market capitalization per share, return on investment, price-to-earnings ratio, and market value-to-book ratio) had a statistically significant impact on the return on shareholders' equity.
