scholarly journals The Impact of Liquidity Decision on Managerial Performance: Evidence from Private Commercial Banks in Bangladesh

2021 ◽  
Vol 8 (1) ◽  
pp. 17-24
Author(s):  
Sumi Saha
Keyword(s):  
Commercial Banks ◽  
Return On Investment ◽  
Least Square ◽  
Annual Reports ◽  
Return On Assets ◽  
Managerial Performance ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Net Profit ◽  
The Impact

This study has examined the impact of liquidity decisions on the managerial performance of ten listed conventional private commercial banks. The required data have been collected from the five years' annual reports of the sample banks and analyzed through formulating different null hypotheses. Findings from the testing of null hypotheses with the use of the ANOVA technique reveal that there is no significant variation of different indicators of liquidity decision as well as the managerial performance of the sample banks. Findings are taken from conducting the multiple regression analysis with ordinary least square (OLS) model also indicate that the indicators of liquidity decision namely current ratio is positively and insignificantly associated with net profit ratio as well as return on equity but negatively and insignificantly associated with return on assets as well as return on investment. Moreover, the networking capital ratio as another indicator of liquidity decision is negatively and insignificantly associated with net profit ratio, return on assets as well as return on equity but positively and insignificantly associated with return on investment of the sample banks over the study period.  

scholarly journals The Impacts of Liquidity on Profitability in Banking Sectors of Iraq

2017 ◽  
Vol 6 (1) ◽  
pp. 113-121
Author(s):  
Sardar Shaket Ibrahim
Keyword(s):  
Commercial Banks ◽  
Stock Exchange ◽  
Least Square ◽  
Annual Reports ◽  
Return On Assets ◽  
Ordinary Least Square ◽  
Islamic Bank ◽  
Exchange Site ◽  
North Bank ◽  
The Impact

This study examines the influence of liquidity on the profitability of Iraqi commercial banks. Five banks based in Iraq namely: North bank, Iraqi Islamic bank, Sumer bank, Dar Es-Salam bank and Babylon bank randomly selected and analyzed for the current study over the period 2005 to 2013. Moreover,  annual reports of these banks have studied and the main ratios of profitability and liquidity were calculated. These reports are available at Iraqi Stock Exchange site. The variables that were identified as independent for liquidity were, loan deposit ratio, deposit asset ratio and cash deposit ratio, while return on assets as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of liquidity on profitability. The study observes that any increase in liquidity ratios as above mentioned will lead return on asset to increase as well. Depending on this study it could be better for Iraqi banks to keep a balance between liquidity and profitability.

scholarly journals The Impact of Capital Structure on Jordanian Banks Performance

2021 ◽  
Vol 10 (1) ◽  
pp. 35
Author(s):  
Rania Al Omari
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Return On Investment ◽  
Stock Exchange ◽  
Return On Assets ◽  
Return On Equity ◽  
Total Debt ◽  
Amman Stock Exchange ◽  
The Impact

Due to the great importance of the financing structure of banks, the impact of capital structure on the financial performance of banks listed on the Amman Stock Exchange has been examined. To achieve the objectives of this study, we have followed the experimental approach. The study relied on financial variables. The Capital Structure has been measured by the ratios of total debt to total assets and total debt to total equity. Both ratios are independent variables. The dependent variable in this study is the financial performance of banks represented by the ratio of return on assets, the ratio of return on equity, the ratio of return on investment, and the ratio of return on share. The study community and sample consisted of twelve commercial banks listed on Amman Stock Exchange (ASE) during the period (2007-2017). Statistical Package for the Social Sciences (SPSS) software was used in testing of research hypotheses. The most important results are that the capital structure has an impact on return on assets (ROA), while it has no impact on return on equity (ROE), return on investment (ROI) and earnings per share (EPS) in Jordanian commercial banks.

scholarly journals Impacts of Capital Structure on Bank Performance

2019 ◽  
Vol 2 (1) ◽  
pp. 118-123
Author(s):  
Sardar SH. Ibrahim
Keyword(s):  
Capital Structure ◽  
Positive Impact ◽  
Least Square ◽  
Annual Reports ◽  
Bank Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Probability Of Survival ◽  
Total Debt ◽  
The Impact

Purpose: This study studies the effect of capital structure on the performance of some Iraqi private banks. Six banks based in Iraq namely: Babylon Bank, Investment Bank, Credit Bank, Commercial Bank, Sharq Al-Awsat Bank, and Baghdad Bank were selected for the present study over the period 2005 to 2015. Methodology: Annual reports of these banks were studied and relevant ratios were calculated. The variables that were identified as independent for capital structure were total debt to capital, bank size and asset growth, while return on assets and return on equity were considered to be dependent variables for bank performance. The panel Least Square model has been used to examine the impact of capital structure on bank performance. Findings:  Outcomes indicate that none of the independent variables has a significant impact on return on assets (ROA), while total debt to capital (TDC) has a positive impact on return on equity (ROE). Reduction: Depending on this result, Iraqi banks should keep sufficient amount of capital to avoid any financial risks and increase the probability of survival.

The Determinants and Financial Statement Effects of IFRS Adoption in Nigeria

2016 ◽  
pp. 319-341
Author(s):  
J. O. Odia
Keyword(s):  
Stock Exchange ◽  
Earnings Quality ◽  
Least Square ◽  
Financial Statement ◽  
Annual Reports ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Ifrs Adoption ◽  
Operating Cash Flow ◽  
The Impact

The chapter examines the determinants and financial statement effect s of IFRS adoption in Nigeria. It also investigate into the impact of effect of the adoption of IFRS on accounting figures and ratios in the financial statements of 50 companies quoted in the Nigerian Stock Exchange. The determinants considered include firm's characteristics (firm size, operating cash flow, leverage, turnover, growth in turnover, profitability, liquidity and earnings quality) and corporate governance variables (board size, board independence and audit type). The data were obtained from the annual reports of companies listed in the Nigerian Stock Exchange between 2011 and 2013 and was analyzed using the ordinary least square (OLS) and logistic regression which were used to test for determinants of IFRS adoption while the independent t-test was used to examine the financial statement effects. With regard to the determinants, the empirical result indicates only profitability and earnings quality have significant but negative association with IFRS adoption. Moreover, IFRS adoption has significant effect on the return on equity.

scholarly journals THE LIQUIDITY AND PROFITABILITY TRADEOFF OF COMMERCIAL BANKS IN NIGERIA

2021 ◽  
Vol 2 (2) ◽  
pp. 17-26
Author(s):  
O. D. Adegboye
Keyword(s):  
Correlation Coefficient ◽  
Commercial Banks ◽  
Management Strategies ◽  
Secondary Data ◽  
Least Square ◽  
Annual Reports ◽  
Return On Assets ◽  
Coverage Area ◽  
Liquidity Management ◽  
Ordinary Least Square

This study used empirical facts and assessed the trade-off of profitability versus liquidity (and vice versa) for five commercial banks in Nigeria. Multivariate research design, regression analysis, Ordinary Least Square, and correlation coefficient approaches were used to apply quantitative methodologies to data collected. Amongst the population of twenty-two banks, Zenith, First, United Bank for Africa, Guaranteed Trust and Union Banks were chosen as case studies for this study using a purposive sample approach. Secondary data was gathered from their five-year annual reports, which were published between 2015 and 2019. The correlation coefficient was employed to test the hypothesis, which revealed that there was a statistically perfect correlation (positive and negative) between LA (loans), BA (bank advances), and MDI (marketable debt instruments) against PAT (profit after tax) and ROA (return on assets). Furthermore, since banks strive to maintain their current assets, the findings revealed that efficient liquidity management is a key determinant that may boost or impair a bank’s profitability. To avoid future insolvency and bankruptcy, this study recommends that these banks use contemporary and effective liquidity management strategies amid the current post-pandemic environment. In addition, while focusing on the same topic of research, interested scholars should make significant use of a broader data coverage area. 

scholarly journals Impact of working capital management on profitability of Industrial sector in Iraq.

2018 ◽  
Vol 7 (1) ◽  
pp. 27
Author(s):  
Sardar Shaker Ibrahim
Keyword(s):  
Industrial Sector ◽  
Least Square ◽  
Annual Reports ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Working Capital Management ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
The Impact

<p><em>This paper observes the impact of working capital management on profitability of industrial sector in Iraq. Four companies based in Iraq namely: Iraqi Date processing, Iraqi carton manufactories, Baghdad soft drinks and Iraqi for tufted carpets randomly selected and analyzed for the present study over the period 2007 to 2016. Annual reports of these companies have been studied and significant ratios calculated. The variables that were identified as independent for working capital were, current ratio and quick ratio, while return on equity ROE as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of working capital management on profitability. Results indicate that ROE is positively related with working capital variables.</em></p>

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

scholarly journals Impacts of Capital Structure on Performance of Banks in a Developing Economy: Evidence from Bangladesh

2016 ◽  
Author(s):  
Md. Nur Alam Siddik ◽  
Sajal Kabiraj ◽  
Shanmugan Joghee
Keyword(s):  
Capital Structure ◽  
Empirical Studies ◽  
Optimal Level ◽  
Least Square ◽  
Return On Assets ◽  
Policy Makers ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Earnings Per Share ◽  
Relative Deficiency

Capital structure decision plays an imperative role in firm&rsquo;s performance. Recognizing the importance, there has been many studies inspected the rapport of capital structure with performance of firms and findings of those studies are inconclusive. In addition, there is relative deficiency of empirical studies examining the link of capital structure with performance of banks in Bangladesh. This paper attempted to fill this gap. Using panel data of 22 banks for the period of 2005-2014, this study empirically examined the impacts of capital structure on the performance of Bangladeshi banks assessed by return on equity, return on assets and earnings per share. Results from pooled ordinary least square analysis show that there are inverse impacts of capital structure on bank&rsquo;s performance. Empirical findings of this study is of greater significance for the developing countries like Bangladesh because it will call upon concentration of the bank management and policy makers to pursue such policies to reduce reliance on debt and to accomplish optimal level capital structure. This research also contributes to empirical literatures by reconfirming (or otherwise) findings of previous studies.

scholarly journals CAPITAL STRUCTURE AS DETERMINANT OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN ETHIOPIA (A CASE STUDY ON PRIVATE BANKS IN ETHIOPIA)

2021 ◽  
Vol 9 (03) ◽  
pp. 216-231
Author(s):  
Taddesse Shiferaw Deneke ◽  
◽  
Tripti Gujral ◽  
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Empirical Relationship ◽  
Asset Return ◽  
Return On Equity ◽  
Net Profit ◽  
Return On Capital ◽  
The Impact ◽  
The Capital Structure

A lot of studies have actually been done by numerous researchers both in developed and developing countries such as Ethiopia to ascertain the empirical relationship existing between capital structure and firm performance with varying samples and period as well as application of several and divergent statistical estimation. This study is based on the identification of the impact that capital structure have on the financial performance of commercial banks in Ethiopia. In this regard, secondary data is collected from varied sources especially annual reports of the private commercial banks in Ethiopia. The literature review is done in the report, and it is identified operating, and the capital structure heavily affects net profit. Apart from this, return on equity, asset and capitals employed also affected by the capital structure of the banks. Regression analysis and descriptive analysis tools are used to analyse the data that is related to the sixteenprivate commercial banks in Ethiopia. On analysis of data, it is identified that operating and net profit is heavily affected by the capital structure. However, in the case of return on asset, return on equity, and return on capital employed, such kind of relationship is not observed. Thus, it is concluded on the basis of entire work that capital structure have the huge impact on the operating and net profit, but it does not put any large impact on the return on asset, return on equity and return on capital employed. The study recommended that banks follow a specific policy, in order to maintain a balance in the capital structure. It is also recommended that managers must keep a keen eye on the changes that are taking place in the capital structure.

scholarly journals KONTRIBUSI PROFITABILITAS TERHADAP PERTUMBUHAN LABA PT. BANK RAKYAT INDONESIA (PERSERO), TBK

2021 ◽  
Vol 8 (2) ◽  
Author(s):  
Wulan Purnama Rais ◽  
Nur Fiskayani Yustika ◽  
Adhe Alda Rezky Darmawan ◽  
Muhammad Irfai Sohilauw
Keyword(s):  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Profit Margin ◽  
Return On Assets ◽  
Microsoft Excel ◽  
Return On Equity ◽  
Net Profit ◽  
The Impact ◽  
Profit Growth

The purpose of this study is to examine and evaluate the impact of return on assets (ROA), return on equity (ROE), and net profit margin (NPM) on PT. Bank Rakyat Indonesia (Persero), Tbk's profit growth. The method of explanatory analysis with a quantitative approach is used in this study. From 2010 to 2019, secondary data were analyzed quarterly, yielding 40 observations. The data was analyzed with Microsoft Excel 2013 and SPSS Version 21. Using multiple linear regression analysis, Return On Assets (ROA) / X1 had a negative and insignificant effect on Profit Growth (Y) of PT. Bank Rakyat Indonesia (Persero), Tbk from 2010 to 2019. However, Return On Assets (ROE) / X2 and Net Profit Margin (NPM) / X3 have a positive and significant impact on Changes in Profit (Y) PT. Bank Rakyat Indonesia (Persero), Tbk from 2010 to 2019.

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