THE ROLE OF SHAREHOLDERS' RETURN AND UNRESTRICTED DEPOSITORS' RETURN ON THE CREDIBILITY OF ISLAMIC BANK IN JORDAN

Abstract

 Banks' credibility is a key issue due to the impact of environmental difficulties on poorer returns, which requires the attention of academics. Thus, the present study investigates the effect of shareholder returns and unlimited depositor returns on the trustworthiness of Islamic banks in Jordan. The study also utilized return on assets, liquidity, and solvency ratio as control variables. From 2001 through 2020, this article compiles secondary data from the financial statements of eleven Islamic banks in Jordan. Methods of Moments-Quantile-Regression (MMQR) were employed to examine the relationship between variables. Results showed that shareholder return, unconstrained depositor return, return on assets, liquidity, and solvency ratio have a positive and significant relationship with the credibility of Islamic banks in Jordan. This article instructs Islamic bank regulators on adopting rules to enhance the banks' reputation by increasing shareholder and unconstrained depositor returns.