scholarly journals Factors affecting on bank’s profitability: the case of 19 Euro-Area countries

2021 ◽  
Vol 9 (1) ◽  
pp. 1-8
Author(s):  
Nexhat Kryeziu ◽  
Egzon Hoxha

The paper has addressed as the main objective the assessment of productivity performance in euro-area nations, observing a combination of factors both in terms of the internal environment and external factors, or known as macroeconomic factors. The analysis includes 19 euro-area countries with 323 observations, including the period 2003-2019. The dynamic approach, the fixed-effect model, and the Arellano / Bond estimator were applied using the panel data to evaluate the study's factors. The analysis shows that the factors under the competence of their internal supervision impact the degree of profitability on the one hand. Macroeconomic factors also show an impact on the degree of profitability for euro-area countries. Five of the seven factors applied in the analysis turned out to significantly impact, while two turned out to be non-significant. For further studies, it would be beneficial to apply other dynamic models by using other specific factors, which will be considered a useful input to the financial industry and financial policy-making.

2019 ◽  
Vol 239 (4) ◽  
pp. 661-701 ◽  
Author(s):  
Sandra Dummert ◽  
Ute Leber ◽  
Barbara Schwengler

AbstractThe current situation in the German apprenticeship market is characterized by two contradictory developments. On the one hand, establishments are experiencing increasing problems filling the training positions they offer, and the number of vacant training positions is climbing. On the other hand, the transition into training is still difficult for many young people, and the number of unsuccessful vocational training applicants is rising. Hence, matching supply with demand is becoming increasingly difficult in the German job market for training positions. Using the Linked Employer-Employee dataset (LIAB) from the Institute for Employment Research (IAB), our paper provides a closer examination of the phenomenon of unfilled training positions. It presents an overview of the evolution of vacant training positions in eastern and western Germany and attempts to explain the number of vacancies by investigating the factors responsible for the establishments’ inability to fill their training positions. We assume that training position vacancies are due not only to internal company reasons such as firm size or the wage offer for apprentices but also to external conditions such as general regional factors. Therefore, our analysis also considers the situation on the demand side of the labor market within a region. The results of our multilevel mixed-effects estimations show that in addition to characteristics on the enterprise level, regional determinants also affect the share of vacant apprenticeships. With respect to establishment-related factors, mainly characteristics that describe the attractiveness of the firm prove to be important. With regard to regional-specific factors, we find that the availability of school leavers in a region in addition to the level of regional-sectoral competition impacts the recruiting success of establishments. Our analysis also shows that there are remarkable differences between eastern and western Germany concerning both the quantitative importance of unfilled training positions and the factors affecting them.


2020 ◽  
Vol 11 (8) ◽  
pp. 1619-1632
Author(s):  
Ahmad Al-Harbi

Purpose The purpose of this paper is to investigate the determinants of Islam banks (IBs) liquidity. Design/methodology/approach In this paper, the author uses a generalized least square fixed effect model on an unbalanced panel data set of all IBs operating in the Organization of Islamic Cooperation countries over the period 1989-2008. Findings The estimation results show that all the determinants have statistically significant relationships with IBs’ liquidity but with different signs. On the one hand, foreign ownership, credit risk, profitability, inflation rate, monetary policy and deposit insurance negatively affected IBs liquidity. On the other hand, capital ratio, size gross domestic product growth and concentration have a positive nexus with IBs’ liquidity. Originality/value According to the best of the author’s knowledge, this is the first empirical study to investigate the determinants of IBs liquidity using cross-country data with a large sample of IBs (110 banks) and over a long period (19 years). Also, the paper included variables that had not been discussed on the previous studies, which used cross-country data, such as efficiency, deposit insurance, monetary policy, concentration and market capitalization.


2021 ◽  
Vol 19 (2) ◽  
pp. 354-362
Author(s):  
Ichsan Ichsan ◽  
◽  
Ira Silvia ◽  
Mahdawi Mahdawi ◽  
Ghazali Syamni ◽  
...  

This study aims to examine some factors affecting the financial performance of manufacturing companies in the Indonesia Stock Exchange (IDX). This research uses data on the financial statements of 20 manufacturing companies listed on IDX in the period 20132017 and carried out share distribution facilities for their employees. This research model is a panel regression model done by testing the common effect model, fixed-effect model, and random effect model. Based on the Chow test and Hausman test, it is found that the best model in this study is the fixed effect model. The study results find that dividend policy, a share giving program to employees, and debt to equity ratio are significant factors affecting the financial performance of manufacturing companies in Indonesia. From these three factors, the debt to equity ratio is the dominant factor determining the financial performance of manufacturing companies, while investment decision does not significantly affect it. Future research studies can be carried out by focusing on other industrial sectors such as the Jakarta Islamic Index 70 and adding other macroeconomic variables.


2019 ◽  
Vol 8 (3) ◽  
pp. 3995-3999 ◽  

The purpose of this research is to analyzes the effects of managerial ownership, audit committees, investment opportunities, profitability, and corporate social responsibility (CSR) on the value of manufacturing companies. Analysis of the factors affecting the value of manufacturing companies using the aplication of panel data regression model with the e-views 9 and Microsoft excel. This research uses data obtained from a manufacturing account of the manufacturing company registered in the Indonesia Sharia Stocks Index (ISSI) period of 2011-2017. Studies show that the most appropriate selection of models for the data panel's regression is a fixed effect model with the result of research that managerial ownership, profitability, and CSR have no significant effect on the value of manufacturing companies, while the variable committee's variables and investment opportunities have significant to the value of the company listed on ISSI period of 2011-2017.


2020 ◽  
Vol 32 (2) ◽  
pp. 45-59
Author(s):  
Purna Man Shrestha

The impact of bank specific factors on the financial performance of Nepalese commercial banks is analyzed in this paper. The financial performance is measured by using return on assets (ROA). Similarly, managerial efficiency (ME), liquidity (LIQ), credit risk (CR), assets quality (AQ) and operational efficiency (OE) is used as proxy of bank specific factors. This study used panel data of 17 commercial banks for the period of 2010/11 to 2017/18. Breusch and Pagan Lagrangian multiplier test showed that Pooled Regression model is not appropriate and Hausman test concluded that Fixed Effect model is appropriate rather than Random Effect model. Using the Fixed Effect model; this study concludes that bank specific factors have significant impact on financial performance of Nepalese commercial banks. Finally, this study reveals that ME, AQ and OE have significant positive impact, and CR has negative impact on the financial performance of Nepalese commercial banks.  


2020 ◽  
Vol 5 (2) ◽  
pp. 29
Author(s):  
Novida Henidar ◽  
Firmansyah Firmansyah

<p align="justify">The study was examined of Indonesian export of seaweed commodity (HS 121221) in 13 main export destination country (China, Korea, Vietnam, Chilli, Hong Kong, France, Spain, the Philippines, Denmark, Japan, Malaysia, Tunisia, and the United States) by using method of RCA (Revealed Comparative Advantage) index and EPD (Export Product Dynamics) index, and factors affecting the export of Indonesian seaweed to the main export destinations for 2012-2018. The Panel data regression method with a fixed-effect model is used to analyze the export model from the demand and supply side. The results showed that within 7 years period (2012-2018), RCA (Revealed Comparative Advantage), trade openness, and GDP had a positive and significant effect while LCU (Local Currency Unit), Consumer Price Index (CPI), and seaweed prices international influence negatively and significantly.</p>


2015 ◽  
Vol 3 (3) ◽  
pp. 9
Author(s):  
Anita Hasli ◽  
Catherine S F Ho ◽  
Nurhani Aba Ibrahim

The research analyses the determinants of FDI inflow in Asia for the period 1993-2013 and is based on the fixed effect model. The macroeconomic factors included are lending rate, GDP per capita, trade openness, debt, exchange rate, money supply and unemployment rate. The country specific factors included are adult literacy rate, gross fixed capital formation, domestic credit provided by the financial sector, environmental pollution and natural resources rents. The study applies panel unit root tests, panel cointegration analysis and panel regression analysis based on the fixed effect model to ascertain the significance of macroeconomic and country specific factors on FDI inflow in Asia. The study found that lending rate, trade openness and money supply have a positive significance to FDI per capita whereas debt, unemployment rate and environmental pollution have a negative significance to FDI per capita.   


Author(s):  
Sajida Gul ◽  
Irfan Ullah ◽  
Hina Gul ◽  
Shahid Rasheed

The existing study intends to measure those factors that affect dividend policy by considering pharmasuitacal’s companies registered on PSX from 2013 to 2017. Population based on all sectors of Pakistan Stock Exchange (PSX) in which pharmaceutical’s companies taken as a sample by using census sampling technique because all companies of pharmaceutical sector were considered. Panel VAR model, fixed effect model (FAM) and also used a regression model to define the influence of IV on DV. The results revealed that has a significant effect of managerial ownership, debt policy, ROA, firm size and free cash flow on dividend policy. The findings of this study demonstrated that the company’s future performance has more concern for the betterment investors than current revenue. There should be active focus on the future aspects in order to improve firm performance.


2017 ◽  
Vol 10 (1) ◽  
Author(s):  
Bang Jessica Santiyano ◽  
Kim Sung Suk

<p>This study aims to examine the effect of bank-specific factors, market structure and macroeconomic to intermediation efficiency of bank as measured by the spread. The data used as many as 99 conventional commercial banks in Indonesia from 2004 to 2013. Panel data estimation method uses the fixed effect model. Results showed that risk averse has positive effects on spread. Income diversification has negative effect on the spread. Other results show that bad loans and liquidity have negative effect on spread. While the operating costs, the market concentration, economic growth, and inflation has negativve effect on spread.<br />Keywords: bank efficiency, risk averse, income diversification</p>


TEME ◽  
2019 ◽  
pp. 1237 ◽  
Author(s):  
Jelena Andrašić ◽  
Vera Mirović ◽  
Branimir Kalaš

Foreign direct investment has a significant role in Southeastern European countries. The aim of the paper is reflected in assessing the character and nature of the relationship between macroeconomic factors and foreign direct investment in Southeastern European countries. Further, the subject of paper includes the examination of the impact of selected macroeconomic variables on foreign direct investment in six countries for the period from 2000 to 2012. The selected countries are Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Romania and Serbia. The research includes an examination impact of market size, national competitiveness and employment on foreign direct investment. By using the Hausman test, it was confirmed that the fixed effect model is an appropriate model in panel analysis. Based on the result, it determined the positive impact of market size, while the industry's share of GDP and employment have a negative impact on this variable. Also, the results confirmed that only the market size of the countries significantly affected on the flow of foreign direct investment in Southeastern European countries.


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