Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.20, 2014 108 The Impact of Global Financial Crisis on Presented and Returned Checks in Jordan Dr. Mahmoud Ibrahim Nour 1 , Dr. Abdel-Aziz Ahmad Sharabati 2 , and Dr. Mohand Fayiz Al-Dweikat 3 1,3 Business Faculty, Israa University, Amman - Jordan 2 Business Faculty, Middle East University, Amman – Jordan E-Mail: APhharmaArts@Gmail.Com Abstract: The purpose of this study is to investigates the effect of global financial crisis (GFC) on the presented and returned checks in Jordan i.e. cause-affect perspective research. The imperial data were collected from the Jordanian Department of Statistics, Central Bank of Jordan, and New York Stock Exchange (NYSE) market data base; the data covered 15 years from 1999 to 2013 to run the analysis. A Bivariate Pearson Correlation and Multiple Regressions were used to test the relationships between GFC and presented and returned checks and the effect GFC on presented and returned checks. A Bivariate Pearson correlation analysis shows that there is a strong significant correlation between presented checks and returned checks. Also, it shows that there is a significant relationship between Dow Jones market drop and increased presented checks. However, it shows that there is no significant correlation between Dow Jones drop and the returned checks. The multiple regressions show that there is a positive effect for GFC on presented checks for clearance in Jordan, and there is a negative effect for GFC on returned checks in Jordan. Generalizing Jordanian results to other countries may be questionable. Therefore, this study recommends extending the analysis to other Arab countries to mitigate the issue of generalizing conclusions on other countries. This study also may be considered as an initiative study which considered the effect of GFC on presented and return checks in Jordan. Introduction: The global financial crisis (GFC) which began in the United States (US) in the sub-prime mortgage market in 2007 spread quickly to Europe and other countries and has become a global crisis. It has affected financial systems, as well as, economic activity of all countries; also it almost has affected all sectors of economies worldwide. IMF (2009a) reported that the global economy went through a period of unprecedented financial instability in 2008–2009, accompanied by the worst global economic downturn and collapse in trade in many decades. No country escaped the reach of this economic storm. Malik, et. al., (2009) stated that the GFC which set off by the sub-prime credit crisis in the US has destabilized the financial markets of the developed world causing the fall down of prominent names in the banking business. Tinio (2009) said the GFC which started from US and spread over other highly industrialized countries like Japan and European countries has affected the economy of many countries. Yeremeyeva (2009) pronounced that the GFC has affected the whole world, not only the developed countries, but also emerging economies and least developed countries. IOSCO (2009) said the GFC showed that emerging markets are integrated with the global financial system; therefore emerging markets are now more interlinked and exposed to more risks. Didier, et. al., (2011) claimed that emerging market economies suffered growth collapses comparable, or even larger, to those experienced by advanced economies during the crisis. Chowdhury (2011) concluded that the financial crisis has send shock waves cutting across boundaries and economies. Ali and Afzal (2012) proclaimed that the GFC started from US, spread all over the world and adversely affected real and financial sectors of developed, as well as, developing countries Li and Li (2012) revealed that the subprime crisis of the U.S. led to a GFC, the economy of many counties was hurt in different extents. Singhal (2014) stated due to globalization the economic crises and their spread are increasing. The origin may be different but the tremors are being felt in different parts of the world. Kazi, et. al., (2014) said the GFC that originated from U.S immediately spread over the 16 Organization for Economic Co-operation and Development (OECD) members. Finally, Iyortsuun and Akpusuugh (2014) mentioned that the GFC has negatively impacted the business and economic development of many nations, both advanced and emerging countries. The GFC was having different effect on different countries, and even more, within the same country different effect on different sectors. The degree of how it affected the various economies throughout the world was depending on how well and how skillfully each country has managed its available resources in terms of manpower, finance, equipment, facilities and supplies (Tinio, 2009). The impact of the GFC on emerging markets has manifested itself in different ways, depending on a number of factors relating to the depth and