scholarly journals Effect of E-customization Capability on Financial Performance of Commercial Banks in Kenya

2019 ◽  
Vol 8 (1) ◽  
pp. 10-20
Author(s):  
Morrisson Mutuku ◽  
Stephen Muathe ◽  
Rosemary James
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
External Environment ◽  
Inferential Statistics ◽  
Return On Assets ◽  
Resource Based View ◽  
Online Registration ◽  
The Impact

Financial performance of a commercial banks driven by a number of capabilities drawn from either the internal or the external environment. The Kenyan Government and commercial banks in particular have invested in e-commerce solution. Despite these invetments over the years, the impact is yet to be felt. The empirical literure reveals that there is a link between commercial banks e-commerce custiomization capability and financial peroformance.The study empirically analyzed the effect of e- commerce customization capability on financial performance of commercial banks in Kenya. E-commerce customization capability measured using online registration,online recommendation and realtime support while financial performance was measured using Return on Assets (ROA). The study was anchored on the Resource-Based View Theory. The study used explanatory design. A census of 43 commercial banks was taken; data for performance was extracted from audited banks statements for financial year 2016/2017. Data for e-commerce customization capability was collected from commercial banks websites. Data for financial performance was extracted from audited financial ststements of commercial banks. Data analysis was done using descriptive and inferential statistics. The study findings indicated that e-commerce customization capability had a significant effect on financial performance of commercial banks in Kenya. The study concluded that e-commerce customization capability significantly affected financial performance of commercial banks in Kneya. The study recommends that the management of commercial banks in Kenya should invest more in customization capability to improve their performance.

scholarly journals The impact of discretionary loan loss provision of sharia financing on financial performance

2019 ◽  
Vol 14 (4) ◽  
pp. 34-41
Author(s):  
Z Zulfikar ◽  
Wahyuni Sri
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Structural Equation ◽  
Equation Modeling ◽  
Loan Loss ◽  
Return On Assets ◽  
Operating Income ◽  
Loan Loss Provision ◽  
Loan Loss Provisions ◽  
The Impact

This study aims to investigate the role of discretionary loan loss provision of sharia financing on the Islamic commercial banks’ financial performance in Indonesia. Partial Least Squares-Structural Equation modeling (PLS-SEM) is used to examine the relationship between loan loss provisions and financial performance in 13 Islamic commercial banks for 4.5 years. The analysis of the outer model shows that the probability of default and loss given default are determinants of loan loss provision, while financial performance is determined by return on assets, non-performing financing, net operating margin, and operating costs on operating income. The results of this study indicate that loan loss provisions have a direct effect on financial performance. Further investigation shows that the return on sharia financing contributes to increasing the impact of loan loss provisions on financial performance (indirect influence). The findings contribute to the literature by showing that discretionary loan loss provision can occur in sharia financing. The study is very important in terms of awareness of management behavior related to financial performance. The study has implications for management policies related to the prerequisites of potential clients.

scholarly journals Can Ratios Predict the Financial Performance in Banks: A Case of National Banks in United Arab Emirates (U.A.E)

2018 ◽  
Vol 8 (4) ◽  
pp. 227 ◽  
Author(s):  
Arindam Banerjee
Keyword(s):  
Financial Performance ◽  
United Arab Emirates ◽  
Asset Management ◽  
Commercial Banks ◽  
Banking Sector ◽  
Gap Analysis ◽  
Future Trend ◽  
Return On Assets ◽  
The Future ◽  
The Impact

A country’s banking sector plays a dominant and important role in its financial growth and economic progress. The prime objective of this research paper is aimed towards evaluating the performance of 12 selected banks in United Arab Emirates (UAE) through various financial ratios. The paper highlights the various financial parameters such as adequacy of risk based capital, credit growth, concentration of credit, non performing position of loans, liquidity gap analysis, liquidity ratios, return on assets, return on equity, net interest margin in analysing the financial performance of the selected banks. The analysis of ratio helps to develop an insight to the extent the various financial variable impact the profitability and the productivity of the selected National Commercial Banks in U.A.E. The purpose of this paper is to examine the future financial performance of selected U.A.E National commercial banks using three indicators; Internal–based performance measured by Return on Assets, Market-based performance measured by Tobin’s Q model (Price / Book value of Equity) and Economic–based performance measured by Economic Value add. The financial data has been adopted from the audited financial statements of the sampled banks for the period of 2014 till 2017. Statistical tools used in the study include multiple regression analysis that captures the impact of the individual size of the bank, the credit risk, efficiency in operations and the asset management on the financial performance followed by forecasting the Future Trend.

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 Board Size, Board Composition and Performance: An Investigation on Turkish Banks

2016 ◽  
Vol 9 (2) ◽  
pp. 74 ◽  
Author(s):  
Ozcan ISIK ◽  
Ali Riza INCE
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Fixed Effects ◽  
Board Composition ◽  
Outside Directors ◽  
Return On Assets ◽  
Board Size ◽  
Net Interest Margin ◽  
Fixed Effects Regression ◽  
The Impact

<p>We investigate the impact of board size and board composition on performance for a sample of 30 commercial banks from 2008 to 2012 in Turkey. We measure bank performance by two alternative measures widely used in the banking literature, i.e. operating return on assets (OROA) and return on assets (ROA). Controlling for bank size, credit risk, liquidity risk, net interest margin and non-interest income, the results of panel fixed effects regression suggest that board size has a significantly positive effect on bank’s financial performance. This means that Turkish commercial banks may improve their financial performance by increasing their board size. Our findings, however, show clearly that there is no significant relationship between board composition (ratio of outside directors on the board) and banks’ financial performance.</p>

scholarly journals Modelling the Impact of Liquidity Trend on the Financial Performance of Commercial Banks and Economic Growth in Cameroon

2017 ◽  
Vol 8 (3) ◽  
pp. 121
Author(s):  
Godfrey Forgha Njimanted ◽  
Akume Daniel Akume ◽  
Nkwetta Ajong Aquilas
Keyword(s):  
Economic Growth ◽  
Financial Performance ◽  
Commercial Banks ◽  
Secondary Data ◽  
Regulatory Control ◽  
Return On Assets ◽  
Positive Effects ◽  
Maturity Mismatch ◽  
Excess Liquidity ◽  
The Impact

Recent year statistics have revealed the build-up of excess liquidity in Cameroonian commercial banks for more than two decades now. This has led to renewed interest in liquidity management, as it has implications on the financial performance of commercial banks. This paper is therefore designed to examine the impact of excess liquidity on the financial performance of commercial banks in Cameroon. Using Return on Assets (ROA) as proxy for the measurement of financial performance, secondary data from 1990 to 2016, with the application of the VAR technique, the findings reveals that excess liquidity and total liquid outflows affect ROA negatively. Gross domestic product, interest rate gap, total liquid inflows and previous year ROA had positive effects on ROA. Also from the empirical findings, there is an existing significant negative chain between excess liquidity, commercial bank performance and economic growth in Cameroon based on the Koyck Geometric lag reasoning. To address the negative vicious cycle chain, we therefore recommend guided minimum and maximum liquidity regulatory control and government effort geared towards encouraging moral suasions and special directive of investment by commercial banks in the agricultural, industrial and the educational sectors in Cameroon. Also, commercial banks should set maturity mismatch limits appropriate to the size of excess liquidity observed in each bank. Attempt to reverse the chain is part of the assurance to Cameroon emergence by 2035.

scholarly journals The Impact of Other Comprehensive Income Items on Financial Performance: Case of Jordanian Commercial Banks

2019 ◽  
pp. 1216-1228
Author(s):  
Adul Aziz Saymeh ◽  
Ayman Mansour Khalaf ALkhazaleh ◽  
Eman Marwan Musallam
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Net Income ◽  
Return On Assets ◽  
Return On Equity ◽  
Comprehensive Income ◽  
Dependent Variables ◽  
Other Comprehensive Income ◽  
Independent Variable ◽  
The Impact

This study aims to determine the effect of the independent variable other comprehensive income on the dependent variables represented by the financial performance of commercial banks. Researcher has studied the case of Jordanian Commercial Banks during the period 2012 to 2017. The study sample consists of 13 Jordanian commercial banks. The study independent variable was given by the quotient of other comprehensive income on net income. The ratios: financial performance by return on assets, and return on equity were the two dependent variables. Study hypotheses were tested by the simple regression equation and T- test. It was found that there was a statistically significant effect of other comprehensive income on the financial performance as measured by the return on assets and return on equity. This significance can be attributed to the increasing weight of other comprehensive income items which makes the value of other comprehensive income an indicator of profitability and efficiency of banks and means of maximizing their wealth. It is recommended that Amman Stock Exchange, Securities Commission and the Companies Control Department, to urge the companies listed on ASE to increase the awareness of companies’ management about the importance of other comprehensive income concept.

scholarly journals Liquidity Management and Financial Performance: Evidence From Commercial Banks in Botswana

2020 ◽  
Vol 11 (5) ◽  
pp. 399
Author(s):  
C.R. Sathyamoorthi ◽  
Mogotsinyana Mapharing ◽  
Mashoko Dzimiri
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Relationship ◽  
Secondary Data ◽  
Return On Assets ◽  
Liquidity Management ◽  
Policy Makers ◽  
Return On Equity ◽  
Research Population ◽  
The Impact

The study examined the impact of liquidity management on the financial performance of commercial banks in Botswana. The study used Return on Assets and Return on Equity to measure financial performance. Cash and cash equivalents to total assets ratio, Cash to deposits ratio, Loans to deposits ratio, Loans to total assets ratio, Liquid assets to total assets ratio, and Liquid assets to deposits ratio were used as proxies for liquidity management. The research population was all the 9 commercial banks in Botswana and the study covered a period of 9 years from 2011 to 2019. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyse the data. The results from regression analysis show statistically significant positive relationships for Loans to total assets ratio and Liquid assets to total assets ratio with return on assets and return on equity. Loans to deposits ratio and Liquid assets to deposits ratio had statistically significant negative relationships with return on assets and return on equity. Cash and cash equivalents to total assets ratio had statistically insignificant positive relationship with return on assets and return on equity whilst cash to deposits ratio had statistically insignificant negative relationship with return on assets and return on equity. Findings suggest that the commercial banks should try to optimize liquidity variables to boost bank performance. The policy makers also, through the Central Bank, should come up with initiatives such as prescribing minimum liquidity requirements that will help banks to stay profitable.

scholarly journals The impact of income diversification on liquidity creation and financial performance of Vietnamese Commercial Banks

Accounting ◽  
2020 ◽  
pp. 553-568
Author(s):  
Cuong Van Hoang ◽  
Loan Quynh Thi Nguyen ◽  
Manh Dung Tran ◽  
Tuan Dung Hoang
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Income Diversification ◽  
The Impact

THE EFFECT OF THE SHARIA SUPERVISORY BOARD AND THE BOARD OF COMMISSIONERS ON THE FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 60-73
Author(s):  
Ahmad Fauzul Hakim Hasibuan ◽  
Fuadi Fuadi ◽  
Angga Syahputra
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Supervisory Board ◽  
Secondary Data ◽  
Sampling Technique ◽  
Islamic Banks ◽  
Purposive Sampling ◽  
Islamic Bank

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank

scholarly journals How Does Debt Financing Affect Financial Performance? A Study of Transport Companies Listed in Pakistan

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Ulfat Abbas ◽  
Sohail Aziz ◽  
Samina Khan
Keyword(s):  
Financial Performance ◽  
Debt Financing ◽  
Annual Reports ◽  
Transport Sector ◽  
Return On Assets ◽  
Secondary Sources ◽  
Earnings Per Share ◽  
The Impact ◽  
Retained Earnings

  Purpose: The purpose of this paper investigates the impact of debt financing on airline’s (transport) sector performance of Pakistan. Design/Methodology/Approach: We gathered the data from secondary sources. In this study, we used a data sample of 11 years from 2008-2018 by using companies annual reports. Due to unavailability of data, only 3 transport companies have been taken for analysis. The software which we used in analysis is SPSS (Statistical Package for Social Science). Findings: The findings of the study suggests that there is opposite relationship between debt financing and financial performance of airlines. Debt is measured from three ratios, short term debt to total assets, long term debt to total assets and total debt to total assets ratio. For the measurement of performance, we used return on assets and earnings per share. We concluded on the basis of findings that the companies should focus on retained earnings which is cheaper source of finance and use less level of debt. As the more level of debt use by the companies, the performance of companies’ decrease. Implications/Originality/Value: There is only one study is available in Pakistan which used transport sector in Pakistan in debt financing context                                                          

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