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Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan

Year 2015, Volume: 5 Issue: 2, 312 - 323, 01.06.2015

Alaaeddin Al-tarawneh Mohmmad Khataybeh

Abstract

This paper attempts to explain the banking performance in Jordan to draw out the implications of related theories and evidence for policy makers. Accordingly, they can influence the banking industry, which, in turn, impacts the economy overall. We investigate the portfolio behaviour of Jordanian banks. The model used is based on the portfolio choice theory, originated by Hicks (1935) and developed by Markowitz (1952) and Tobin (1958). Several nested models are developed to test the theoretical restrictions, including symmetry and homogeneity of the interest rate matrix. The empirical results, in general, clearly do not provide any support for interest rates which are important in determining the general composition of the portfolio holdings of Jordanian banks. The results show, however, that availability of funds is more important in determining the structure of these portfolios.

Keywords

Portfolio Banking Risk aversion Finance Expected utility approach

Year 2015, Volume: 5 Issue: 2, 312 - 323, 01.06.2015

Alaaeddin Al-tarawneh Mohmmad Khataybeh

Abstract

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Details

Other ID JA27EP87VA
Journal Section Research Article
Authors

Alaaeddin Al-tarawneh This is me

Mohmmad Khataybeh This is me

Publication Date June 1, 2015
Published in Issue Year 2015 Volume: 5 Issue: 2

Cite

APA Al-tarawneh, A., & Khataybeh, M. (2015). Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan. International Journal of Economics and Financial Issues, 5(2), 312-323.
AMA Al-tarawneh A, Khataybeh M. Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan. IJEFI. June 2015;5(2):312-323.
Chicago Al-tarawneh, Alaaeddin, and Mohmmad Khataybeh. “Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan”. International Journal of Economics and Financial Issues 5, no. 2 (June 2015): 312-23.
EndNote Al-tarawneh A, Khataybeh M (June 1, 2015) Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan. International Journal of Economics and Financial Issues 5 2 312–323.
IEEE A. Al-tarawneh and M. Khataybeh, “Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan”, IJEFI, vol. 5, no. 2, pp. 312–323, 2015.
ISNAD Al-tarawneh, Alaaeddin - Khataybeh, Mohmmad. “Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan”. International Journal of Economics and Financial Issues 5/2 (June 2015), 312-323.
JAMA Al-tarawneh A, Khataybeh M. Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan. IJEFI. 2015;5:312–323.
MLA Al-tarawneh, Alaaeddin and Mohmmad Khataybeh. “Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan”. International Journal of Economics and Financial Issues, vol. 5, no. 2, 2015, pp. 312-23.
Vancouver Al-tarawneh A, Khataybeh M. Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan. IJEFI. 2015;5(2):312-23.