The effect of liquidity risk on the performance of banks: Evidence from Jordan

This study aimed to determine the impact of liquidity risk on financial performance of Jordanian banks, where liquidity risk was measured by (Liquidity ratio, net working capital, cash and investment ratio to total deposits), and financial performance was also measured through the index (return on assets) and the modifying variable (bank size) measured through the natural logarithm of total assets was also added. To achieve the objectives of the study, the analytical quantitative approach was adopted. The study community consisted of all 13 commercial banks listed on the Amman Stock Exchange. All banks in the study community were selected as a study sample using the comprehensive survey method, and the statistical analysis program (SPSS) was used to test the study hypotheses. Based on the results of the statistical analysis, it was found that there was an impact of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange, and there was an impact for each of (current liquidity ratio, net working capital, cash and investment ratio to total deposits) on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. It was also found that the size of the bank contributes to modifying the effect of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. The study concluded a set of recommendations, the most important of which are: commercial bank administrations should increase interest in exploiting their liquidity within acceptable risk limits to reach optimal ratios for financial performance by balancing the returns to be achieved with the potential risks of such expenses in a way that ensures the positive impact of liquidity risk on the financial performance of those banks.

Corporate Governance dan Shariah Compliance Terhadap Financial Statement Fraud Pada Bank Umum Syariah

This study tested the Influence of Corporate Governance and Shariah Compliance on Financial Statement Fraud in Sharia Commercial Banks in the Period 2015-2019. Independent variables in this study are Corporate Governance and shariah compliance projected with Islamic Income Ratio, Profit Sharing Ratio and Islamic Investment Ratio. While the dependent variable used is Financial Statement Fraud in sharia commercial banks. The population in this study was all Sharia Commercial Banks (BUS). Sampling techniques using purposive sampling method. The number of samples as many as 12 Islamic commercial banks with a lot of data 60. The results of this study show islamic income ratio affects Financial Statement Fraud, while Profit Sharing Ratio, Islamic Investment Ratio and Corporate Governance have no effect on Financial Statement Fraud.

Deteksi fraudulent financial reporting: suatu pendekatan menggunakan accrual based investment ratio dan cash based investment ratio

Purpose: This study aimed to provide empirical evidence of the influence of Accrual Based Investment Ratio and Cash-Based Investment Ratios in detecting fraudulent financial reporting Research methodology: Fraudulent financial reporting in this study used a combined model of the cheating model (Beneish M-Score) with a bankruptcy model (Altman Z-Score). This study's sample was a non-financial company listed on the Stock Exchange during the observation period from 2010-2018. Sampling techniques with purposive sampling and obtained a total of 790 observations. Data processing was done via SPSS program version 16.0 using logistic regression. Results: This study proves that Earnings per Share, Dividend per Share ratio, Total Share Profitability Ratio, Dividend Profitability, Asset Efficiency Ratio influence in detecting fraudulent financial reporting while Price / Earning ratio, Dividend Ratio, Operating Cash Flow Ratio, Current Liability Coverage Ratio, Long Term Debt Coverage Ratio, Interest Coverage Ratio, Cash Generating Power Ratio, External Financing Index Ratio do not affect detecting fraudulent financial reporting Limitations: There are still inaccuracies in predicting Fraudulent Financial Reporting so that for future research, other combined models can be used in predicting Fraudulent Financial Reporting, including adding liquidity ratios, asset management ratios, debt management ratios, profitability ratios, and sufficiency ratios Contribution: This study provides implications for the signal theory that explains the usefulness of financial statements in decision making and predictions, including using financial ratios in predicting Fraudulent Financial Reporting Keywords: Fraudulent financial reporting, Accrual based investment ratio, Cash-based investment ratio, Beneish M-Score, Altman Z-score

ANALISIS KINERJA KEUANGAN BANK SYARIAH MENGGUNAKAN SHARIA CONFORMITY AND PROFITABILITY (SCnP)

This study aims to measure the performance of Islamic banks using the SCnP Model. The population of this study is all Islamic commercial banks registered with the OJK from 2017-2019. The sampling technique used purposive sampling, while the data analysis technique was descriptive. The SCnP model has two variables, namely Shariah Conformity with Islamic Income Ratio indicators, Islamic Investment Ratio and Profit Sharing Ratio and Profitability with Return On Assets (ROA), Return On Equity (ROE) and Profit Margin Ratio indicators. The analysis on the SCnP results is that Islamic banks are spread out in four quadrants (ULQ, LLQ, URQ and LRQ) and recommends a sample of research banks, namely subsidiaries of state-owned banks namely Bank Syariah Mandiri, Bank Negara Indonesia Syariah, Bank Rakyat Indonesia Syariah. The results of the study show that for three years, 2017-2019, the results show that Islamic banks are spread out in only two quadrants, namely the Lower Left Quadrant (LLQ) and the Upper Left Quadrant (ULQ). Keywords: Financial Performance, Islamic Commercial Banks, Shariah Conformity and Profitability (SCnP) Model Abstrak Penelitian ini bertujuan untuk mengukur kinerja bank syariah dengan menggunakan SCnP Model. Populasi penelitian ini adalah semua bank umum syariah yang terdaftar di OJK dari tahun 2017-2019. Teknik pengambilan sampel menggunakan purposive sampling, sementara teknik analisis data berupa deskriptif. Model SCnP memiliki dua variabel, yaitu Shariah Conformity dengan indikator Islamic Income Ratio, Islamic Investment Ratio dan Profit Sharing Ratio dan Profitability dengan indikator Return On Assets (ROA), Return On Equity (ROE) dan Profit Margin Ratio. Analisis pada hasil SCnP yaitu, bank syariah tersebar dalam empat kuadran (ULQ, LLQ, URQ dan LRQ) dan merekomendasikan sampel bank penelitian yaitu anak perusahaan dari bank BUMN yakni Bank Syariah Mandiri, Bank Negara Indonesia Syariah, Bank Rakyat Indonesia Syariah. Hasil dari penelitian menunjukkan selama tiga tahun yaitu 2017-2019 menunjukkan hasil bahwa bank syariah tersebar dalam dua kuadran saja, yaitu Lower Left Quadrant (LLQ) dan Upper Left Quadrant (ULQ). Kata kunci: Kinerja Keuangan, Bank Umum Syariah, Shariah Conformity and Profitability (SCnP) Model

Split sex ratios and genetic relatedness in a primitively eusocial sweat bee

In eusocial Hymenoptera, queens and their helper offspring should favour different sex investment ratios. Queens should prefer a 1:1 investment ratio, as they are equally related to offspring of both sexes (r = 0.5). In contrast, helpers should favour an investment ratio of 3:1 towards the production of female brood. This conflict arises because helpers are more closely related to full sisters (r = 0.75) than brothers (r = 0.25). However, helpers should invest relatively more in male brood if relatedness asymmetry within their colony is reduced. This can occur due to queen replacement after colony orphaning, multiple paternity and the presence of unrelated alien helpers. We analysed an unprecedentedly large number of colonies (n = 109) from a UK population of Lasioglossum malachurum, an obligate eusocial sweat bee, to tease apart the effects of these factors on colony-level investment ratios. We found that multiple paternity, unrelated alien helpers and colony orphaning were all common. Queen-right colonies invested relatively more in females than did orphaned colonies, producing a split sex ratio. However, investment ratios did not change due to multiple paternity or the presence of alien helpers, reducing inclusive fitness pay-offs for helpers. Queen control may also have been important: helpers rarely laid male eggs, and investment in female brood was lower when queens were large relative to their helpers. Genetic relatedness between helpers and the brood that they rear was 0.43 in one year and 0.37 in another year, suggesting that ecological benefits, as well as relatedness benefits, are necessary for the maintenance of helping behaviour. Significance statement How helping behaviour is maintained in eusocial species is a key topic in evolutionary biology. Colony-level sex investment ratio changes in response to relatedness asymmetries can dramatically influence inclusive fitness benefits for helpers in eusocial Hymenoptera. The extent to which helpers in primitively eusocial colonies can respond adaptively to different sources of variation in relatedness asymmetry is unclear. Using data from 109 colonies of the sweat bee Lasioglossum malachurum, we found that queen loss, but not multiple paternity or the presence of alien helpers, was correlated with colony sex investment ratios. Moreover, we quantified average helper-brood genetic relatedness to test whether it is higher than that predicted under solitary reproduction (r = 0.5). Values equal to and below r = 0.5 suggest that relatedness benefits alone cannot explain the maintenance of helping behaviour. Ecological benefits of group living and/or coercion must also contribute.

THE INFLUENCE OF SHARIA COMPLIANCE AND ISLAMIC CORPORATE GOVERNANCE ON FRAUD IN ISLAMIC BANKS IN INDONESIA

This study aims to examine the Influence of Sharia Compliance and Islamic Corporate Governance on fraud on Islamic banks in Indonesia. The independent variable that was mummified was sharia compliance with Islamic Income Ratio (IsIR), Profit Sharing Ratio (PSR), Islamic Investment Ratio (IIR), and Islamic Corporate Governance. The dependent variable used is fraud that occurs in Islamic commercial banks in Indonesia. The research method used in this study is the method of library research. The type of data used is secondary data in the form of financial statement data and annual GCG implementation reports for the period of 2014 to 2018. The population in this study were all Sharia Commercial Banks (BUS) registered at Bank Indonesia in the period 2014 to 2018. The sample was selected using the purposive sampling method. The total sample used in this study amounted to 11 Islamic Commercial Banks with a study period of 5 years. The analytical method used in this study is multiple regression processed using SPSS version 23. The results of this study indicate that the variable sharia compliance as a proxy Islamic Income Ratio (ISIR), Profit Sharing Ratio (PSR), Islamic Investment Ratio (IIR), have a negative effect on Islamic bank’s fraud while Islamic corporate governance had no effect on fraud in Islamic banks in Indonesia.

Impact of Liquidity on the Profitability of the Commercial Banks of Nepal

The study aims to examine the impact of liquidity on the profitability of Nepalese commercial banks. Investment ratio, capital ratio and liquidity ratio are the independent variables and return on assets is dependent variable. Secondary sources of data have been used from the annual reports of sampled commercial banks. The regression models are estimated to test the effect of bank liquidity on performance of Nepalese commercial banks. Study results reveal that investment ratios and liquidity ratios are negatively related to return on assets indicating that higher the investment ratios and liquidity ratios, lower would be the return on assets and vice versa. Further, the relationship between capital ratios and return on assets is found to be positive indicating that higher the capital ratios of the bank, higher would be the return on assets. Similarly, beta coefficient for capital ratio is positively significant with bank performance, which indicates that increase in capital ratio leads to increase the performance of the banks. However, beta coefficients for investment ratio and liquidity ratio are negative with return on assets indicating increased liquidity ratio and investment ratio decrease the return on assets of the bank.

THE INFLUENCE OF SHARIA COMPLAINCE AGAINST FRAUD ON THE SHARIA BANKS IN INDONESIA

This study aims to analyze how big the influence of sharia compliance towards the profitability of Islamic Banks in Indonesia. The sample selected by the method of purposive sampling so obtained 9 samples of islamic banks The Unit of analysis in the study amounted to 45 of the annual report of Islamic Banks. Research approach with quantitative methods using secondary data. Type the quantitative data in the form of data of financial statements (annual report) each bank of the the year 2013 until 2017. The results of this study seen from the results of the F test, a variable Profit Sharing Ratio (PSR), Islamic Income Ratio (IsIR), and Islamic Investment Ratio (IIR) simultaneously no significant effect on the variable fraud. From the results of t test variable Profit Sharing Ratio (PSR), Islamic Income Ratio (IsIR), and no significant effect on the variable fraud. From the results of t test variable Profit Sharing Ratio (PSR), Islamic Income Ratio (IsIR), and Islamic Investment Ratio (IIR) no effect and not significant on the variable fraud. Based on the results of the above analysis in the absence of such influence caused, the activities in Islamic banking are currently carrying out compliance on sharia principles, because the lower the level of fraud the higher the level of shariah compliance on Islamic banking. The banks still have to improve the level of compliance with the principles of sharia and also do activities to the prevention of fraud.