What the study found
The study found a significant positive association between FinTech and board characteristics and banks’ cash holdings in Jordanian banks. In the abstract, the authors also say these findings support consumer theory and agency theory.
Why the authors say this matters
The authors conclude that the findings may help stakeholders, executives, bankers, customers, and policymakers understand the relationship between FinTech, board characteristics, and banks’ cash holdings in Jordan. They also suggest that banks in emerging economies should offer green loans for sustainability projects by leveraging FinTech adoption and board directors’ expertise to reallocate excess cash holdings.
What the researchers tested
The researchers examined the association between FinTech, board characteristics, and banks’ cash holdings using data from 14 banks listed on the Amman Stock Exchange from 2009 to 2024. They used panel data econometric analysis with ordinary least squares (OLS) as the main approach, and also applied two-stage least squares (2SLS), generalized method of moments (GMM), a dynamic model, and fixed effects regression to address causality and endogeneity issues.
What worked and what didn't
The analyses indicated that FinTech and board characteristics were significantly and positively connected with banks’ cash holdings. The abstract does not report any null or negative findings.
What to keep in mind
The study is based on 14 Jordanian banks, so its scope is limited to that setting and time period. The abstract does not describe specific limitations beyond noting the need for future work in other Middle Eastern countries.
Key points
- FinTech and board characteristics were positively associated with banks’ cash holdings.
- The study used panel data from 14 banks listed on the Amman Stock Exchange from 2009 to 2024.
- OLS was the main analysis, with 2SLS, GMM, a dynamic model, and fixed effects regression used as additional checks.
- The authors say the findings support consumer theory and agency theory.
- The abstract suggests future research in other Middle Eastern countries, especially Jordan-focused work.
Disclosure
- Research title:
- FinTech and board traits are linked to higher cash holdings in Jordanian banks
- Authors:
- Faraj Salman Alfawareh, Nawwaf Hamid Salman Alfawaerh, Amro Saleem Alamaren, Mahmoud Khaled Al-Kofahi
- Institutions:
- Al al-Bayt University, Applied Science Private University, Imam Mohammad ibn Saud Islamic University, Irbid National University
- Publication date:
- 2026-03-29
- OpenAlex record:
- View
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