Hadeel Yaseen

The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since

In late 1980’s National Association of Accountants had introduced Activity-based costing – a cost accounting technique which charges organization’s indirect costs to the activities that cause the costs to be incurred and then distributes costs of activities to the products that cause the activities to be performed. Activity-based costing as a management tool has proved its relevance and found its proponents among academics and managers. Introduction of the time aspect into Activity-based costing proved that it is still attracting attention and undergoing development in order to become more accurate. The paramount goal of the implementation is to prove the increased effectiveness and superiority of cost management when using Activity-based costing. It will be achieved by allocation of overhead costs to products with the intention to determine unit costs. This process of allocation will increase the reliability of cost information and improve the information base for product decisions. Moreover, we expect that this approach will more or less alter the profit margin of individual products. This kind of information is very useful when evaluating price-related or keep/drop decisions.

The Determinant of Firm Investment: The Case of Listed Jordanian Industrial Companies

Relative to the recent performance of the Jordanian economy, it can be argued that the private sector must be encouraged to increase investment levels. Indeed, the central idea behind the establishment of the Jordanian capital market in 1978 was to promote savings by activating and encouraging investment in bonds and shares and to direct such savings to serve the development of the national economy. The fact that firm investment is an important indicator of the health of economies, this study investigates the investment behavior of listed Jordanian industrial firms during the period 2000-2013. Based on the financial statement of 52 listed industrial firms and panel data analysis, the empirical results indicate that firm investment does respond to stock market valuation (Tobin’s Q). On the other hand, firm’s leverage does not have a significant effects on firm investment. Based on these outcomes, one can argue that the pricing efficiency of the listed firms’ stock is extremely important.

Market Discipline in Banking: The Jordanian Experience

This paper applies the issue of bank discipline to the Jordanian banking sector. Based on a total of 13 banks, the time period 2001-2012, and the Seemingly-Unrelated Regression (SUR), the results, on average, show that Jordanian depositors demand higher interest rate from banks with higher levels of risk. In addition, depositors seem to withdraw their depositors from banks with increasing levels of risk. These results are encouraging. Indeed, they indicate that depositors’ disciplining behavior complements the efforts of the Central Bank of Jordan (CBJ).