The Combined Influence of Market Concentration and Shares on Banking Performance: Insights from Jordan

Document Type : Research Paper

Authors

Department of Accounting, Business School, University of Jordan, Amman, Jordan

Abstract

This study investigates how market shares and concentration affect banks' performance on the Amman Stock Exchange. We employed regression analysis on a complete dataset from 2012 to 2022. We look at the Herfindahl-Hirschman Index (HHI) to analyse how market concentration and each bank's share affect their performance. The research findings indicated a positive relationship between market shares and banks’ performance, as well as a positive relationship between market concentration and banks’ performance. These results support the structure-conduct-performance (SCP) and relative market power (RMP) hypotheses. The findings have significant implications for policymakers, regulators, and banking practitioners aiming to enhance the banking sector's efficiency, competitiveness, and resilience in emerging markets.

Keywords

Main Subjects

References

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Interdisciplinary Journal of Management Studies
Volume 18, Issue 4
October 2025
Pages 791-806

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