Income smoothing in banks and insurance companies and its impact on earnings per share – evidence from Jordan

This study aims to examine the impact of artificial intelligence through robotic process automation systems on internal audit operation efficiency in Jordanian commercial banks. The study uses a descriptive methodology to evaluate how robotic process automation systems enhance the different dimensions of internal audit efficiency: planning, management, execution, and communication. The study designed a structured questionnaire for data collection. The sample consisted of 12 commercial bank employees whose working processes are directly affected by robotic process automation system procedures which puts them in a unique position to comment on the practical applicability of this technology and its implications for internal audit. In this study, 480 electronic questionnaires were distributed via Google Forms, and 390 completed forms were collected for further analysis. The study employs descriptive statistics and advanced statistical techniques, such as linear regression analysis, for data analysis. The findings indicate that robotic process automation systems enhance the internal audit process by reducing the cost of operations, eliminating human errors, and smoothing work processes. The robotic process automation system will allow continuous auditing, real-time risk management, and proper reporting; hence, it will change the role of internal auditors and, in the end, improve organizational compliance and performance. This study asserts that the banking industry must integrate AI-driven automation to maintain its competitiveness in the constantly changing financial landscape.

The facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.

This study seeks to verify the contribution of internal audit (IA), especially its role in improving financial performance in Yemeni commercial banks, with a specific focus on three factors, namely: the independence and objectives of IA, the quality of IA and the size of IA. This study reviews some existing literature on the contribution and role of IA in improving financial performance. It relies on available data from questionnaires. 90 questionnaires were distributed to nine commercial banks in Yemen (23 branches) working under the supervision of the Central Bank of Yemen; 81 questionnaires (90%) were regained and used in the process of analysis. To analyze the data, three analysis approaches were used, including description, correlation, and regression. The results showed that the IA has a significant impact on the overall performance of Yemeni commercial banks. Furthermore, the results showed that the auditors’ efficiencies, as well as their financial and accounting experiences, have a significant and positive impact on financial performance. It was revealed that the independence and objectivity of internal auditors are highly insignificant for financial performance. However, the size of IA and the frequency of the auditors’ meetings have a negative and significant effect on financial performance. This study provides some recommendations for improving the effectiveness of IA, which in turn will contribute to improving financial performance.