Papers by ibrahim alshomaly
Modern Applied Science, Oct 29, 2018
This paper aimed to test the validity of capital asset pricing model (CAPM) and arbitrage pricing... more This paper aimed to test the validity of capital asset pricing model (CAPM) and arbitrage pricing theory (APT) in Jordanian stock Market using three different firms of three main sectors, financial, industrial, and service sector for the period Q1 (2000) to Q4 (2016), using published information obtained from Amman stock exchange (ASE), these models were designed to measure the cost of capital using the coefficient of systematic risk factor, that used in the valuation of capital assets. We reviewed the most important similarities and differences between the two models out of sectors analysis. The study showed, first, there are some differences between the two models in term of the amount of systematic risk that can be eliminated by diversification in the three sectors. Second, the application of APT model showed that large percentage of risk can be eliminated by diversification more than CAPM model. Third, the banking sector in Jordan faces more systematic risks than other sectors.
The paper aims at identifying the potentials of decreasing the systematic risks of banking equity... more The paper aims at identifying the potentials of decreasing the systematic risks of banking equity portfolio through changes in the diversification nature of banks activities. We analyzed the financial statements of (13) Jordanian banks on parallelism with market index of Amman stock exchange (ASE) for the period (2006-2012). We used Herfindahl Hirschmann index (HHI) to measure the diversification degree of revenue, credit, and deposits activities.The study concluded that (a) stock market has evaluated the changes in revenue diversification more efficiently than changes in the structure of credit or deposits regarding the systematic risks of bank equity portfolio.(b) The concentration of interest income in the bank’s revenue portfolio was high and was positively correlated with changes in the systematic risks of trading. (c) The Jordanian banks were more diversified regarding credit and deposit activities, but this diversification was not evaluated by market. And finally, the study s...
Journal of Social Sciences (COES&RJ-JSS), 2020
This paper examined the relationship between the patterns of export diversification and economic ... more This paper examined the relationship between the patterns of export diversification and economic growth in west Asian Arab countries during the period (2000-2017) using World Bank, UNCTAD, and Pen World data. The study used the DX Diversification Index (UNCTAD). This index measures the country's export divergence from the world's diversification patterns. The OLS and FMOLS methods were used to estimate the study model coefficients. The study found that the exports diversification structures in this group diverged clearly from the world diversification pattern since the exports of group countries driven by a high degree of primary exports concentration. Moreover, the economic growth was influenced positively by human capital, primary products export growth, and the adoption of efficient anti-corruption policies, but, it negatively influenced by trade openness and population growth. The study disclosed a long-term relationship between economic growth and the interactions of ex...
Modern Applied Science, 2018
This paper aimed to test the validity of capital asset pricing model (CAPM) and arbitrage pricing... more This paper aimed to test the validity of capital asset pricing model (CAPM) and arbitrage pricing theory (APT) in Jordanian stock Market using three different firms of three main sectors, financial, industrial, and service sector for the period Q1 (2000) to Q4 (2016), using published information obtained from Amman stock exchange (ASE), these models were designed to measure the cost of capital using the coefficient of systematic risk factor, that used in the valuation of capital assets. We reviewed the most important similarities and differences between the two models out of sectors analysis. The study showed, first, there are some differences between the two models in term of the amount of systematic risk that can be eliminated by diversification in the three sectors. Second, the application of APT model showed that large percentage of risk can be eliminated by diversification more than CAPM model. Third, the banking sector in Jordan faces more systematic risks than other sectors.
European Scientific Journal, Jun 29, 2014
The paper aims at identifying the potentials of decreasing the systematic risks of banking equity... more The paper aims at identifying the potentials of decreasing the systematic risks of banking equity portfolio through changes in the diversification nature of banks activities. We analyzed the financial statements of (13) Jordanian banks on parallelism with market index of Amman stock exchange (ASE) for the period (2006-2012). We used Herfindahl Hirschmann index (HHI) to measure the diversification degree of revenue, credit, and deposits activities.The study concluded that (a) stock market has evaluated the changes in revenue diversification more efficiently than changes in the structure of credit or deposits regarding the systematic risks of bank equity portfolio.(b) The concentration of interest income in the bank's revenue portfolio was high and was positively correlated with changes in the systematic risks of trading. (c) The Jordanian banks were more diversified regarding credit and deposit activities, but this diversification was not evaluated by market. And finally, the study showed that there is a decline in the value of systemic risk over the period of study.
Journal of Management Research, 2013
Journal of Social Sciences (COES&RJ-JSS)
The issuance of Islamic Sukuk Law in Jordan is a step in the right direction for the liberation o... more The issuance of Islamic Sukuk Law in Jordan is a step in the right direction for the liberation of the financial system from the predominance of an interest-based financial system than just a creditor to be participants in economic activity also provides opportunities for individuals who are eager to invest in Islamic financial instruments and as an engine of the Jordanian economy. Through the studying some of the economic and financial indicators in Jordan for the period from (1998-2012), the study found a positive indicators support the idea of Sukuk Islamic such as the relatively high rates of savings and bank deposits as a percentage of GDP, which means providing the necessary funding for the underwriting of these instruments. But there are other indicators put this idea in a challenge in terms of its acceptance or its continuity by the financial system and investors due to the lack of confidence in the economy and to the high ratio of public debt and public deficit. Moreover, the penetration of interest-based system in the economy and the absence of efforts seriousness in fighting corruption are also another serious challenges. With all this, the activation and issuance of laws governing the reform of the financial system ,anticorruption and increasing transparency will enhance the confidence of investors in order to accept financing of Islamic derived investments .moreover ,it necessary to be screened the experiences of other Muslim and non-Muslim countries who apply Islamic securitization and introduce them with these products and their characteristics to stimulate the economic sectors to accept this Islamic project.
SSRN Electronic Journal
The paper aims at identifying the potentials of decreasing the systematic risks of banking equity... more The paper aims at identifying the potentials of decreasing the systematic risks of banking equity portfolio through changes in the diversification nature of banks activities. We analyzed the financial statements of (13) Jordanian banks on parallelism with market index of Amman stock exchange (ASE) for the period (2006-2012). We used Herfindahl Hirschmann index (HHI) to measure the diversification degree of revenue, credit, and deposits activities.The study concluded that (a) stock market has evaluated the changes in revenue diversification more efficiently than changes in the structure of credit or deposits regarding the systematic risks of bank equity portfolio.(b) The concentration of interest income in the bank’s revenue portfolio was high and was positively correlated with changes in the systematic risks of trading. (c) The Jordanian banks were more diversified regarding credit and deposit activities, but this diversification was not evaluated by market. And finally, the study s...
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Papers by ibrahim alshomaly