An Empirical Investigation of Commercial Banks’ Impact on Financial Management, Macroeconomic Factors, And Financial Risks

Abstract

An extensive empirical analysis into the complex interplay among financial risks, macroeconomic variables, financial management techniques, and commercial banks is carried out in this research report. This study attempts to shed light on how financial management strategies, macroeconomic variables, and associated risks influence and are influenced by commercial banks using real-world data analysis and sophisticated statistical approaches. For investors, banking professionals, and policymakers looking for a thorough grasp of the complex factors influencing the stability and resilience of the banking industry in the face of economic problems, this research offers insightful information.The value of the banking area is impacted by various macroeconomic variables, financial management, and risk consideration, and academics ought to give specific consideration to this part. This article looks at how economic hazards like credit and finances, economic variables, and methods for managing money like returns on assets (ROA) as well as returns on equity (ROE) impact Jordanian commercial Banking firm value. For the evaluation, Bank of Jordan discretionary data for the years 2012–2021 was obtained. The fixed-effect framework and the robust measurement error were used in the review to investigate the relationships between the variables and elements. The essay assists policymakers in determining ways for increasing bank value by focusing on financial management and limiting financial risk.