scholarly journals Impact of Capital Adequacy on Banks’ Performance: Considering the Basel International Regulatory Framework for Banks

ETIKONOMI ◽  
2021 ◽  
Vol 20 (1) ◽  
pp. 45-54
Author(s):  
Sampson Agyapong Atuahene ◽  
Kong Yusheng ◽  
Geoffrey Benturn-Micah ◽  
Abigail Konadu Aboagye
Keyword(s):  
Time Series Data ◽  
Performance Indicator ◽  
Fixed Effect Model ◽  
Regulatory Framework ◽  
Capital Adequacy ◽  
Series Data ◽  
Effect Model ◽  
Net Profit ◽  
The Impact ◽  
Negative Link

This study examines the impact of banks' capital on the performance of banks. The studies adopted a fixed-effect model estimation. Time-series data covering the period 2008-2017 for Ghanaian listed universal banks was considered. We found out that the bank’s capital and banks’ net profit after tax has a positive and significant relationship with banks’ total asset base as a performance indicator. We further discovered through correlational analysis that there is a strong negative link between banks' outstanding loans (credit advancement) and banks' performance. The fundamental implications of this study are to encourage the monitoring of capital adequacy of banks since it creates opportunities for banks to perform effectively.JEL Classification: E5, E44, G21, G30How to Cite:Atuahene, S. A., Yusheng, K., Bentum-Micah, G., & Aboagye, A. K. (2021). Impact of Capital Adequacy on Banks’ Performance: Considering the Basel International Regulatory Framework for Banks. Etikonomi: Jurnal Ekonomi, 20(1), 45 – 54. https://doi.org/10.15408/etk.v20i1.15590.

scholarly journals Testing The Warrants Mispricing and Their Determinants: The Panel Data Models

2017 ◽  
Vol 5 (2) ◽  
pp. 118
Author(s):  
Muhammad Rizky Prima Sakti ◽  
Abdul Qoyum
Keyword(s):  
Panel Data ◽  
Stock Return ◽  
Time Series Data ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Daily Basis ◽  
Series Data ◽  
Effect Model ◽  
The Impact

This paper empirically studied the impact of several variables such as moneyness, stock return, maturity, and volatility on the warrant mispricing. We selected 4 companies listed in Bursa Malaysia such as MHC Plantations Bhd, MKH Bhd, YFG Bhd, and UNISEM to investigate the mispricing of warrants. Subsequently, panel time series data employed with daily basis from 30 June 2010 until 30 June 2013. The Black-Scholes Option Pricing Model (BSOPM) used to determine the mispricing of warrant. Several panel data techniques employed in this study such as pooled-OLS, fixed effect model (FEM), and random effect model (REM). In turn, we found that FEM is well explained the determinants of warrant mispricing. Thus, empirical results suggest that moneyness, maturity, and volatility are positively and significantly explained the mispricing of warrant, while stock return does not give an impact toward the warrant mispricing. The BSOPM is consistently mispricing the warrant either in-the-money (ITM) or out-the money (OTM) warrants. The market is not efficient on the warrants traded for four companies observed

scholarly journals The Threats of Unsystematic Risks in Jordanian Commercial Banking Sector

2017 ◽  
Vol 9 (9) ◽  
pp. 175
Author(s):  
Ghaith N. Al-Eitan ◽  
Ismail Y. Yamin
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Banking Sector ◽  
Fixed Effect Model ◽  
Commercial Banking ◽  
Capital Adequacy ◽  
Credit Risk Management ◽  
Effect Model ◽  
The Impact ◽  
The Empirical Analysis

The objective of this study is to empirically examine the effect of unsystematic risks on the performance of commercial banks in Jordan, using panel data for the period of 10 years (2005-2015). The study uses earning per share and dividends as dependent variables to represent Banks’ performance. The empirical analysis based on the fixed effect model selected on the basis of Hausman test. The results indicate that the impact of Non-performing loans on commercial banks’ dividends is positive and significant while the impact of capital adequacy is negative and statistically significant on dividends. The results indicate that the credit risk, liquidity risk, non-performing loan and capital adequacy have significant effect on earnings per share and the effects are negative as expected. Based on the study it is recommended that the Jordanian commercial banks needs enhance the process of credit risk management to determine loan defaulter and impose the appropriate legal action against them.

Moderasi NPF terhadap Intervensi BOPO dan CAR pada Kinerja Keuangan Bank Syariah di Indnesia 2019-2021

2021 ◽  
Vol 4 (2) ◽  
pp. 328-344
Author(s):  
Toha Barizi ◽  
Rifky Fatoni ◽  
Zuni Fitrowati ◽  
Umrotul Khasanah
Keyword(s):  
Financial Services ◽  
Time Series Data ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Series Data ◽  
Return On Assets ◽  
Operating Income ◽  
Capital Adequacy Ratio ◽  
Considerable Impact ◽  
The Impact

The goal of this research is to look into the impact of Operating Costs on Operating Income (BOPO) and Capital Adequacy Ratio (CAR) on the Financial Performance of Islamic Commercial Banks, which is measured using one of the profitability ratio indicators, Return on Assets (ROA). This study employs a quantitative approach by employing explanatory research, which tries to examine the theories and hypotheses that exist in this study in order to determine whether they strengthen or weaken earlier theories and hypotheses. The study relied on secondary data, specifically information gathered from the ojk.ac.id website. This research uses monthly time series data from the Financial Services Authority from 2019 to 2021, with a sample size of 26 months. Multiple linear regression and moderated regression analysis were employed in this study's regression model (MRA). The findings of this study revealed that BOPO had a considerable impact on ROA, although CAR had no such impact, and that NPF, as a moderating variable, was able to moderate the impact of BOPO and CAR on ROA.

GREEN GROWTH: IMPORTANT DETERMINANTS

2015 ◽  
Vol 60 (02) ◽  
pp. 1550014 ◽  
Author(s):  
GHULAM SAMAD ◽  
RABIA MANZOOR
Keyword(s):  
Time Series Data ◽  
Random Effect ◽  
Random Effect Model ◽  
Developed Countries ◽  
Fixed Effect Model ◽  
Least Square ◽  
Series Data ◽  
Market Size ◽  
Green Growth ◽  
Effect Model

We discuss the important determinants requires to develop green patents, which eventually reinforce green growth. The theoretical framework examined four elements, the enforcement of intellectual property rights (IPRs), research and development (R&D) expenditures, market size and environmental taxations. We empirically test the green patent data to test the interrelationship of green patents representing the green innovations and IPR, R&D expenditures, market size and environmental taxations. Keeping in view the availability of the data we studied 11 developed countries, which are Austria, Australia, Canada, France, Japan, Finland, Germany, Sweden, U.K and U.S. The panel data can better handled the technological change rather than the pure cross section or pure time series data. Therefore, this study used the Pooled Least Square estimation techniques like Fixed Effect Model (FEM) and random effect model (REM) for both balance period of 1995–2010 and unbalanced period from 1995–2010. We only interpreted the balance period results depicting the enforcement of IPRs has negative and significant impact on green patents while the R&D expenditures, market size and environmental taxations has positive and significant impact on the green patents e.g. development of green innovations. We believe that the enforcement of explanatory variables will eventually acquire green growth.

scholarly journals The Gap in Economic Growth from Foreign Investment and Domestic Investment across Provinces in Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 34-38
Author(s):  
Asnawi Asnawi ◽  
Irfan Irfan ◽  
M. Fathul Chairi Ramadhani
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Time Series Data ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Series Data ◽  
Domestic Investment ◽  
Effect Model ◽  
Negative Effect

The study aims to determine the effect of Foreign Investment (FDI) and Domestic Investment (PMDN) on Cross-Province Economic Growth in Indonesia in 2014-2018. This study uses secondary data with Panel and Poled data consisting of 34 provinces in Indonesia, and use the 5 years time-series data during 2014-2018. The analytical method used is the panel regression analysis method with the Fixed Effect model and poled model. The results showed that foreign investment and domestic investment had a positive and significant effect on economic growth across provinces in Indonesia. Furthermore, the results of the study show that foreign investment and domestic investment have a significant and positive effect on economic growth in 8 provinces in Indonesia, and the foreign investment has a significant and positive influence on economic growth in 9 Provinces in Indonesia. However, only North Maluku, where foreign investment has a significant and negative effect on economic growth, and domestic investment significantly and positively affects economic growth in 6 provinces in Indonesia.

scholarly journals The Impact of Companies' Internal Factors On The Performance of Their Stock Returns

2019 ◽  
Vol 2 (1) ◽  
pp. 120-149
Author(s):  
Erifa Aldiena ◽  
Muhammad Hanif al Hakim
Keyword(s):  
Stock Returns ◽  
Time Series Data ◽  
Series Data ◽  
Return On Assets ◽  
Internal Factors ◽  
Book Value ◽  
Depth Analysis ◽  
Net Profit ◽  
Equity Ratio ◽  
The Impact

It is commonly known that in the capital market, not all stocks of companies that have a good profile will provide good returns to investors. Therefore, an in-depth analysis of the companies’ overall health is needed. This study aims to discuss the impact of companies’ internal factors on the performance of their stock returns. The companies meant here are those listed in the Jakarta Islamic Index (JII). The tool by which the data is analysed is panel data which is a combination of time series data and cross section. By employing companies’data of year 2014-2016, the study shows that Return On Assets (ROA), Net Profit Margin (NPM), Debt to Equity Ratio (DER) and Price to Book Value (PBV) simultaneously had a significant effect on the formation of stock returns of companies listed in the JII. Likewise, those four variables namely; ROA, NPM, DER and PBV partially have a significant effect on the formation of stock returns of companies listed in the JII.

scholarly journals Company Internal Factors and Their Influences on Financial Performance

2021 ◽  
Vol 3 (2) ◽  
pp. 177
Author(s):  
Lilis Renfiana ◽  
Yudhisthira Ardana
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Time Series Data ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Series Data ◽  
Fixed Costs ◽  
Effect Model

This research aims to systematically, actual, and accurately explain the facts and characteristics of the company and their effect on financial performance. Data in the form of time-series data from 2015-2019 and cross-section data collected from the financial statements of automotive companies listed on the Indonesia Stock Exchange then obtained nine companies that meet the criteria. The independent variables are Firm Size, Leverage, Liquidity, and the dependent variable is financial performance as proxied by Return On Equity (ROA). The research used panel data techniques; Common Effect Model, Fixed Effect Model, and Random Effect Model. The results show that Firm Size partially has a negative and significant effect, meaning that the greater the assets owned by the company, the more complex the agency problems faced. The partial leverage variable has a negative and significant effect, means that the use of relatively high debt will cause fixed costs in the form of interest expenses and loan principal installments to be paid, the greater the fixed costs. The liquidity variable partially has a positive and insignificant effect. This means that changes that occur in both the number of current assets or current liabilities affect increasing profits so that the increase in Liquidity (CR) or the level of liquidity affects changes in increasing company performance (ROA).

scholarly journals Analisis pengaruh produktivitas tenaga kerja, ketimpangan pendapatan, dan investasi terhadap pertumbuhan ekonomi di Indonesia periode 2009-2018

2021 ◽  
Vol 5 (2) ◽  
pp. 93-110
Author(s):  
Dwi Desnasari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Income Inequality ◽  
Labor Productivity ◽  
Cross Section ◽  
Time Series Data ◽  
Fixed Effect Model ◽  
Series Data ◽  
Analysis Tool ◽  
Effect Model

This study aims to analyze the effect of labor productivity, income inequality, and investment oneconomic growth in Indonesia. The data used is panel data consisting of time series data for 2009 -2018 and a cross section of 34 provinces in Indonesia. The variables used are economic growth,labor productivity, income inequality, and investment. The analysis tool used is panel dataregression, namely the Fixed Effect Model (FEM). The results showed that labor productivity had apositive and significant effect on economic growth, income inequality had a negative andsignificant effect, while investment had no effect on economic growth in 34 provinces in 2009-2018.

scholarly journals Analisis Regresi Data Panel Profitabilitas Bank Pembangunan Daerah (BPD) di Indonesia

2018 ◽  
Vol 8 (1) ◽  
pp. 1
Author(s):  
Saiful Ghozi ◽  
Hadi Hermansyah
Keyword(s):  
Panel Data ◽  
Time Series Data ◽  
Empirical Test ◽  
Fixed Effect Model ◽  
Model Specification ◽  
Series Data ◽  
Return On Assets ◽  
Effect Model ◽  
Panel Data Regression ◽  
Financial Research

The data obtained in banking and financial research is often in the form of panel data, while panel data is a combination of cross section and time series data. The aim of this paper is to apply panel data regression analysis to obtain an appropriate model. The case taken is the analysis of the influence of the ratio of Loan to Deposit Ratio (LDR) and Non Performing Loan (NPL) to the Return On Assets (ROA) of Bank for Regional Development (BPD) in Indonesia in the period 2012 to 2016. From the model specification test results obtained that the fit model is the Fixed Effect Model (FEM). The empirical test result between individual and time effect showed that fit model is is individual effect model, i.e.   slope coefficients constant but the intercept varies across 20 bank of BPD samples. The main LDR and NPL variables have no significant effect on ROA. While individual Bank BPD which has significant effect on ROA is BPD of DIY, BPD of Central Sulawesi, BPD of Southeast Sulawesi BPD of West Java BPD, BPD of East Java, and BPD of South Kalimantan.

scholarly journals The effect of inflation, profit-loss sharing loan, and capital adequacy towards performance of Indonesian Islamic banks

2019 ◽  
Vol 2 (2) ◽  
pp. 57
Author(s):  
Luksi Visita
Keyword(s):  
Time Series Data ◽  
Capital Adequacy ◽  
Series Data ◽  
Islamic Banks ◽  
Return On Assets ◽  
Business Units ◽  
Capital Adequacy Ratio ◽  
New Perspective ◽  
Variable Influence ◽  
The Impact

The purpose of this study is to observe the impact of inflation, profit-loss sharing loan, and capital adequacy towards performance of Islamic banks in Indonesia. This study utilizes longitudinal study from 2010 to 2018 towards Islamic Commercial Banks and Sharia Business Units that are listed in Indonesia. Using pool-time series data, the variables studied are inflation, capital adequacy ratio (CAR), profit-loss sharing loan, and return on assets (ROA). The result shows that only inflation has no significant effect on performance. Capital adequacy affects positively significant, while profit-loss sharing loan affects negatively significant. This study add new perspective on how macroeconomic variable influence Islamic banks’ performance in Indonesia. Additionally, this study is also distinctive because of lengthier observation period (eight years) compared to other studies in recent five years

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