The Impact of Unsystematic Risks on Islamic Bank Stock Returns in Jordan

Abstract

The main objective of this paper is to analyze and demonstrate the impact of unsystematic risks on the returns of Islamic banks in Jordan during the period between 2016-2021, where the researchers adapted the descriptive analytical approach through studying and analyzing the information contained in the financial reports issued by Islamic banks, in line with reviewing the studies and research related to the study. Through the study, it was concluded that there are statistical differences between Jordanian Islamic banks in the level of financing risk, the level of liquidity risk, and the level of their returns. On the other hand, the level of operational risk between Islamic banks were the same based on the statistical analysis. In conclusion, the study recommended the need for Islamic banks to pay attention to the human element, use advanced technology, and develop financing tools that keep pace with the times and are compatible with the provisions of Islamic Sharia.