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Year 2015, Volume: 2 Issue: 3, 0 - 0, 29.09.2015

Abstract

References

  • Beck, T. and H. Hesse (2009), “Why are Interest Spreads so High in Uganda?”, Journal of Development Economics, 88, p. 192-204.
  • Ben-Khedhiri, H., B. Casu, and F. Sheik-Rahim (2005), “Profitability and Interest rates Differentials in Tunisian
  • Banking”, The University of Wales, Bangor. Ben Naceur, S. and M. Goaied (2001), “The Determinants of the Tunisian Deposit Bank's Performance”, Applied
  • Financial Economics, 11, p. 317-319. Ben Naceur, S. (2003), “The Determinants of the Tunisian Industry Profitability: Panel Evidence”, The Arab
  • Economic Research Forum. Chortareas, G., J. Garza-Garcia G. Girardone (2011), “Banking Sector Performance in Latin America: Market
  • Power versus Efficiency”, Review of Development Economics, 15, p. 307-325. Claeys, S. and R. Vennet (2008), “Determinants of Bank Interest Margins in Central and Eastern Europe: A
  • Comparison with the West”, Economic Systems, 32. p. 197-216. Demirguc – Kunt, A. and H. Huizinga (1999), “Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence”, World Bank Economic Review, 13, p. 379-408.
  • Demirguc – Kunt, A. and H. Huizinga (2001), “Financial Structure and Bank Profitability”, in Financial Structure and Economic Growth: A Cross-Country Comparison of Banks, Markets, and Development. Cambridge and London: MIT Press.
  • Fungacova, Z. and T. Poghosyan (2011), “Determinants of Bank interest Margins in Russia: Does Bank Ownership
  • Matter?”, Economic Systems, 3, p. 481-495. Ghazouani, I. and B. Mhiri (2013), “Explanatory Factors of Bank Performance Evidence from Tunisia”,
  • International Journal of Economics, Finance and Management, 2, p. 143-152. Gurbuz, A., S. Yanik and Y. Ayturk (2013), “Income Diversification and Bank performance: Evidence from Turkish
  • Banking Sector”, Journal of BRSA Banking and Financial markets, 7, p. 9-29. Gurley, J. and E. Shaw (1955), “Financial Aspects of Economic Development”, American Economic Review 45, 515-5
  • Heffernana, S. and F. Xiaoqing (2010), “Determinants of Financial Performance in Chinese Banking”, Applied
  • Financial Economics, 20, p. 1585-1600.
  • Helhel, Y. (2015), “Evaluating The Performance of the Commercial Banks In Georgia”, Research Journal of Finance and Accounting, 5, p. 146-156.
  • Kansoy, F. (2012), “The Determinants of Net Interest Margin in the Turkish Banking Sector: Does Bank Ownership
  • Matter?”, Journal of BRSA Banking and Financial Markets, 6, p. 13-49. Marinkovic, S. and O. Radovic (2010), “On the Determinants of Interest Margin in Transition Banking: The Case of
  • Serbia”, Managerial Finance, 36, p. 1028-1042.
  • Maudos, J. and L. Solis (2009), “The Determinants of Net Interest Income in the Mexican Banking System: An
  • Integrated Model”, Journal of Banking and Finance, 33, p. 1920-1931.
  • Mensi, S. (2010), “Measurement of Competitiveness Degree in Tunisian Deposit Banks: An Application of the Panzar and Rosse Model”, Panoeconomicus, 2, p. 189-207.
  • Naceur, S. and M. Omran (2011), “The Effects of Bank Regulations, Competition, and Financial Reforms on Banks'
  • Performance”, Emerging Markets Review, 12, p. 1-20. Nassar, K., E. Martinez, and A. Pineda (2015), “Determinants of Banks’ Net Interest Margins in Honduras”, IMF Working Paper No. 14/163.
  • Nouaili, M., E. Abaoub and A. Ochi (2015), “The Determinants of Banking Performance in Front of Financial
  • Changes: Case of Trade Banks in Tunisia”, International Journal of Economics and Financial Issues, 5, p. 410-417. Omet, G., M. Abu Hadhoud and M. Abdel-Halim (2015), “Deposit Dollarization and Bank Performance: The Jordanian Experience”, International Journal of Business and Social Science, 6, p. 139-145.
  • Oreiro, J. and L. de Paula (2010), “Macroeconomic Determinants of Bank Spread in Latin America: A Recent
  • Analysis with Special Focus of Brazil”, International Review of Applied Economics, 24, p. 573-590. Perera, S., M. Skully and J. Wickramanayake (2010), “Bank Market Concentration and Interest Spreads: South
  • Asia Evidence”, International Journal of Emerging Markets, 5, p. 23-37. Shaw, E. 1973, Financial deepening in economic development, Oxford University Press: New York.
  • Souza-Sobrinho, N. (2010), “Macroeconomics of Bank Interest Spreads: Evidence from Brazil”, Annals of Finance, 6, p. 1-32.
  • Trujillo-Ponce, A. (2013), “What Determines the Profitability of Banks? Evidence from Spain”, Accounting and Finance, 53, p. 561-586.
  • World Economic Forum (2012), The Financial Development Report, Geneva, Switzerland.
  • Yaseen, H., G. Omet and F. Kahmash (2015), “On the Entry of Foreign Banks: The Jordanian Experience”,
  • International Journal of Economics and Finance, 7, p. 278-282.

BANKS OFFER LOTTERY PRIZES: WHAT ARE THE IMPLICATIONS?

Year 2015, Volume: 2 Issue: 3, 0 - 0, 29.09.2015

Abstract

The primary goal of this interdisciplinary paper is to examine whether or not the adoption of depositor-focused marketing tool (Lottery prizes) pays in the Jordanian banking system. The fact that about half of the commercial banks offer lottery (cash) prizes to their customers (depositors), it would be interesting for academics in finance and marketing, bank managers, and bank shareholders, to examine the impact of this marketing policy on the performance of this sector in terms of return on assets and net interest margin. Based on a total of thirteen (13) Jordanian commercial banks and the time period 2002-2012, the results indicate that lottery prizes have a positive and significant impact on the accounting performance of banks. However, this positive impact comes at the expense of bank efficiency. In other words, it is concluded that the extra “cost” incurred by banks that offer cash prizes are “passed on” to their customers in the form of wider net interest margin.

References

  • Beck, T. and H. Hesse (2009), “Why are Interest Spreads so High in Uganda?”, Journal of Development Economics, 88, p. 192-204.
  • Ben-Khedhiri, H., B. Casu, and F. Sheik-Rahim (2005), “Profitability and Interest rates Differentials in Tunisian
  • Banking”, The University of Wales, Bangor. Ben Naceur, S. and M. Goaied (2001), “The Determinants of the Tunisian Deposit Bank's Performance”, Applied
  • Financial Economics, 11, p. 317-319. Ben Naceur, S. (2003), “The Determinants of the Tunisian Industry Profitability: Panel Evidence”, The Arab
  • Economic Research Forum. Chortareas, G., J. Garza-Garcia G. Girardone (2011), “Banking Sector Performance in Latin America: Market
  • Power versus Efficiency”, Review of Development Economics, 15, p. 307-325. Claeys, S. and R. Vennet (2008), “Determinants of Bank Interest Margins in Central and Eastern Europe: A
  • Comparison with the West”, Economic Systems, 32. p. 197-216. Demirguc – Kunt, A. and H. Huizinga (1999), “Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence”, World Bank Economic Review, 13, p. 379-408.
  • Demirguc – Kunt, A. and H. Huizinga (2001), “Financial Structure and Bank Profitability”, in Financial Structure and Economic Growth: A Cross-Country Comparison of Banks, Markets, and Development. Cambridge and London: MIT Press.
  • Fungacova, Z. and T. Poghosyan (2011), “Determinants of Bank interest Margins in Russia: Does Bank Ownership
  • Matter?”, Economic Systems, 3, p. 481-495. Ghazouani, I. and B. Mhiri (2013), “Explanatory Factors of Bank Performance Evidence from Tunisia”,
  • International Journal of Economics, Finance and Management, 2, p. 143-152. Gurbuz, A., S. Yanik and Y. Ayturk (2013), “Income Diversification and Bank performance: Evidence from Turkish
  • Banking Sector”, Journal of BRSA Banking and Financial markets, 7, p. 9-29. Gurley, J. and E. Shaw (1955), “Financial Aspects of Economic Development”, American Economic Review 45, 515-5
  • Heffernana, S. and F. Xiaoqing (2010), “Determinants of Financial Performance in Chinese Banking”, Applied
  • Financial Economics, 20, p. 1585-1600.
  • Helhel, Y. (2015), “Evaluating The Performance of the Commercial Banks In Georgia”, Research Journal of Finance and Accounting, 5, p. 146-156.
  • Kansoy, F. (2012), “The Determinants of Net Interest Margin in the Turkish Banking Sector: Does Bank Ownership
  • Matter?”, Journal of BRSA Banking and Financial Markets, 6, p. 13-49. Marinkovic, S. and O. Radovic (2010), “On the Determinants of Interest Margin in Transition Banking: The Case of
  • Serbia”, Managerial Finance, 36, p. 1028-1042.
  • Maudos, J. and L. Solis (2009), “The Determinants of Net Interest Income in the Mexican Banking System: An
  • Integrated Model”, Journal of Banking and Finance, 33, p. 1920-1931.
  • Mensi, S. (2010), “Measurement of Competitiveness Degree in Tunisian Deposit Banks: An Application of the Panzar and Rosse Model”, Panoeconomicus, 2, p. 189-207.
  • Naceur, S. and M. Omran (2011), “The Effects of Bank Regulations, Competition, and Financial Reforms on Banks'
  • Performance”, Emerging Markets Review, 12, p. 1-20. Nassar, K., E. Martinez, and A. Pineda (2015), “Determinants of Banks’ Net Interest Margins in Honduras”, IMF Working Paper No. 14/163.
  • Nouaili, M., E. Abaoub and A. Ochi (2015), “The Determinants of Banking Performance in Front of Financial
  • Changes: Case of Trade Banks in Tunisia”, International Journal of Economics and Financial Issues, 5, p. 410-417. Omet, G., M. Abu Hadhoud and M. Abdel-Halim (2015), “Deposit Dollarization and Bank Performance: The Jordanian Experience”, International Journal of Business and Social Science, 6, p. 139-145.
  • Oreiro, J. and L. de Paula (2010), “Macroeconomic Determinants of Bank Spread in Latin America: A Recent
  • Analysis with Special Focus of Brazil”, International Review of Applied Economics, 24, p. 573-590. Perera, S., M. Skully and J. Wickramanayake (2010), “Bank Market Concentration and Interest Spreads: South
  • Asia Evidence”, International Journal of Emerging Markets, 5, p. 23-37. Shaw, E. 1973, Financial deepening in economic development, Oxford University Press: New York.
  • Souza-Sobrinho, N. (2010), “Macroeconomics of Bank Interest Spreads: Evidence from Brazil”, Annals of Finance, 6, p. 1-32.
  • Trujillo-Ponce, A. (2013), “What Determines the Profitability of Banks? Evidence from Spain”, Accounting and Finance, 53, p. 561-586.
  • World Economic Forum (2012), The Financial Development Report, Geneva, Switzerland.
  • Yaseen, H., G. Omet and F. Kahmash (2015), “On the Entry of Foreign Banks: The Jordanian Experience”,
  • International Journal of Economics and Finance, 7, p. 278-282.
There are 33 citations in total.

Details

Journal Section Articles
Authors

Majed Shami This is me

Ghassan Omet This is me

Adel Bino This is me

Bashar Abu Khalaf This is me

Publication Date September 29, 2015
Published in Issue Year 2015 Volume: 2 Issue: 3

Cite

APA Shami, M., Omet, G., Bino, A., Khalaf, B. A. (2015). BANKS OFFER LOTTERY PRIZES: WHAT ARE THE IMPLICATIONS?. Journal of Management Marketing and Logistics, 2(3). https://doi.org/10.17261/Pressacademia.2015312951

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