The Impact of Systematic Risk on Stock Return of Jordanian Commercial Banks Listed on the Amman Stock Exchange during the Period (2000-2020)

Abstract

This study aimed to measure the impact of systemic risks (beta coefficient and inflation) on the stock returns of Jordanian commercial banks during the period (2000-2020). The study sample consisted of all Jordanian commercial banks listed on the Amman Stock Exchange. The study used several statistical methods to reveal the association of the independent variables with the dependent variable, where the descriptive analytical approach was adopted to analyze the data in addition to the multiple regression analysis. The results of the study showed that regarding the systemic risks, there is a negative impact of the beta coefficient on stock returns, while it was found that there is a positive effect of inflation on the stock returns of Jordanian commercial banks. The study recommended the development of better policies to face risks, which in turn reduces the profits of commercial banks.