Planning Budgets And Their Impact On The Relationship Between Balanced Scorecard And Profitability Maximization: An Applied Study On Commercial Banks Listed On Amman Stock Exchange

Abstract

This study aimed to know the impact of planning budgets on the relationship between the application of the Balanced Scorecard and Profitability Maximization on Commercial Banks Listed on Amman Stock Exchange, where the balanced scorecard was measured by the four axes (financial prespective, customer prespective, internal operations prespective, growth and development prespective). In order to achieve the objectives of the study, a questionnaire was designed and distributed to employees, managers and heads of departments working in the financial management department in commercial banks listed on Amman Stock Exchange, and accordingly (108) questionnaires were adopted and entered for statistical analysis.

The results of the study showed that there is an impact of applying the balanced scorecard on maximizing the profitability of commercial banks listed on Amman Stock Exchange, and there is an impact of applying each of (financial prespective, customer prespective, internal operations prespective, growth and development prespective) on on maximizing the profitability of commercial banks listed on Amman Stock Exchange. Also, the results of the study showed that there is an impact of planning budgets on the relationship between the application of the Balanced Scorecard and Profitability Maximization on Commercial Banks Listed on Amman Stock Exchange.

The study recommended a set of recommendations, the most important of which are: Jordanian commercial banks should pay attention to the application of all axes of the balanced scorecard by developing training programs for their employees on applying the balanced scorecard in order to know how to benefit from its data in forming the estimated dimensions of future performance.