scholarly journals How does risk management affect financial performance? Evidence from Chinese listed commercial banks

2019 ◽  
Vol 9 (4) ◽  
pp. 20-29 ◽  
Author(s):  
Guan-Chih Chen ◽  
Shuling Tsao ◽  
Ren-Her Hsieh ◽  
Pan Hu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Risk Index ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Insolvency Risk ◽  
The Impact

An increasing number of commercial banks in China began to pay attention to comprehensive risk management after the global financial crisis. With the accelerated pace at which China’s commercial banks are expanding abroad, establishing a comprehensive risk management system appropriate for the international financial market has become a critical hurdle for these banks’ further development. This paper explores the impact of risk management on the financial performance of listed banks in China, comparing state-owned banks and non-state-owned banks, by establishing multiple linear regression analysis models. The results reveal a significant impact on the financial performance of state-owned commercial banks, such as on insolvency risk index, loan-to-deposit ratio, nonperforming loan ratio, and bank size. Insolvency risk index and bank size are found to positively impact state-owned commercial banks’ financial performance. For non-state-owned banks, capital adequacy ratio, nonperforming loan ratio, and bank size have significantly impact financial performance, with bank size positively influencing financial performance.

scholarly journals Does Credit Risk Management affect the Financial Performance of Commercial Banks in Kosovo?

2018 ◽  
Vol 7 (2) ◽  
pp. 49-57
Author(s):  
Rrustem Asllanaj
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Multiple Regression ◽  
Commercial Banks ◽  
Multiple Regression Model ◽  
Capital Adequacy ◽  
Regression Equations ◽  
Credit Risk Management ◽  
The Impact

This study analyses the impact of credit risk management on financial performance of commercial banks in Kosovo, and comparing the relationship between the determinants of credit risk management and financial performance by using CAMEL indicators. Panel data of 85 observations from 2008 to 2012 of ten commercial banks was analysed using multiple regression model. Findings through multiple regression analysis are presented in forms of tables and regression equations. The study also elaborates whether capital adequacy, asset quality, management efficiency, earnings and liquidity have strong or weak relationship with financial performance of commercial banks. The study concludes that CAMEL model can be used as a system of assessment and rating of credit risk management by commercial banks in Kosovo.

scholarly journals The impact of credit risk management on the financial performance of United Arab Emirates commercial banks

2021 ◽  
Vol 10 (3) ◽  
pp. 303-319
Author(s):  
Jamil Salem Al Zaidanin ◽  
Omar Jamil Al Zaidanin
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
United Arab Emirates ◽  
Commercial Banks ◽  
Positive Impact ◽  
Capital Adequacy ◽  
Credit Risk Management ◽  
Capital Adequacy Ratio ◽  
Income Ratio ◽  
The Impact

The main purpose of this study is to measure up to what extent the independent factors defined by capital adequacy ratio, non-performing loans ratio, cost-income ratio, liquidity ratio, and loans-to-deposits ratio impact the financial performance of sixteen commercial banks operating in the United Arab Emirates using panel data for the period of 2013-2019. The secondary data was collected from banks and examined by applying standard descriptive statistics and the random effect model for hypothesis testing. It is concluded from the regression outcomes that non-performing loans ratio and cost-income ratio have a significant negative impact on commercial banks profitability in the United Arab Emirates, while capital adequacy ratio, liquidity ratio, and loans -to-deposits ratio all have a very weak positive relationship on the return on assets but they are not determinants of bank’s profitability due to the insignificant statistical impact on it. It is therefore suggested that to enhance financial performance and minimize the risk of non-performing loans in the future, banks must watch very carefully the loans’ performance and analyze thoroughly the clients’ credit history and ability to pay back their debts prior to any approval of loan applications. Furthermore, banks should continuously improve their assets utilization, liquidity, and techniques of managing operating costs, improve the impact of capital adequacy, and the use of deposits for lending activities from a weak positive impact to a significant positive impact on their profitability. The researchers recommend that future studies on credit risk management influence on banks’ financial performance should consider more independent variables and longer periods of study such as twenty or thirty years to have more accuracy and generalized results.  

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI KINERJA KEUANGAN BANK UMUM SYARIAH DI INDONESIA

2020 ◽  
Vol 5 (1) ◽  
pp. 50
Author(s):  
Yolandafitri Zulvia
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Linear Regression Analysis ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Operation Efficiency ◽  
Analysis Technique ◽  
Capital Adequacy Ratio

<p><em>This study aims to analyze the factors that influence the financial performance of Islamic commercial banks in Indonesia. In this study financial performance is measured using Return On Assets (ROA). The independent variables in this study are </em><em>Consumer Funds (DPK), Non-Performing Financing(NPF), Capital Adequacy Ratio (CAR), </em><em>Operation Efficiency  (BOPO), Financial Deposit Ratio (FDR). The population in this study is all Islamic commercial banks in Indonesia for the period 2011-2018. The total sample in this study amounted to 7 Islamic commercial banks. The data analysis technique used in this research is multiple linear regression analysis. The results showed the variable </em><em>Consumer Funds (DPK) and </em><em>Operation Efficiency (BOPO) had a positive and not significant effect. Variable Non-Performing Financing (NPF) and Financial Deposit Ratio (FDR) have a negative and significant effect while CAR variable has a negative and not significant effect.</em></p><p><em><br /></em></p><p><em>Penelitian ini bertujuan untuk menganalisis faktor-faktor yang mempengaruhi kinerja keuangan Bank Umum Syariah di Indonesia. Dalam penelitian ini kinerja keuangan diukur menggunakan Return On Asset (ROA). Variabel independen dalam penelitian ini adalah Dana Pihak Ketiga (DPK), Non Performing Financing (NPF), Rasio Kecukupan Modal (CAR), Efisiensi Operasi (BOPO), Rasio Deposito Keuangan (FDR). Populasi dalam penelitian ini adalah semua bank umum syariah di Indonesia untuk periode 2011-2018. Total sampel dalam penelitian ini berjumlah 7 bank umum syariah. Teknik analisis data yang digunakan dalam penelitian ini adalah analisis regresi linier berganda. Hasil penelitian menunjukkan variabel Dana Pihak Ketiga (DPK) dan Efisiensi Operasi (BOPO) memiliki pengaruh positif dan tidak signifikan. Variabel Non Performing Financing (NPF) dan Financial Deposit Ratio (FDR) memiliki pengaruh negatif dan signifikan sedangkan variabel CAR memiliki pengaruh negatif dan tidak signifikan.</em></p>

scholarly journals Risk Management, Working Capital Management and Financial Performance

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Wisnu Panggah Setiyono ◽  
Lia Ernawati
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Internal Audit ◽  
Multiple Linear Regression Analysis ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
The Impact

Research Purposes: Aim of this study was to know the impact of Risk Management and Working Capital Management to The Financial Performance of Companies Listed In Indonesia Stock Exchange (IDX).Variables: This study employed Risk management proxied by Internal Audit. The proxies of working capital management, we used Current Ratio (CR) and Working Capital Turnover (WCTO). The Financial Performance we used Return On Assets (ROA) ratio as a proxy.Research Method: We used multiple linear regression analysis to analyzed whether the Risk management and the working capital management had impact on The Financial Performance. We also performed classical assumption tests including; normality test, multicolinearity, autocorrelation and heteroskesdasticity.Results: The results of this study indicate that simultaneously Internal Audit, CR and WCTO have a significant effect on financial performance. However, the partial effect had various results. The Internal audit and CR have no significant effect on financial performance whereas WCTO has a significant negative effect on financial performance.

scholarly journals Influence of Bank Health Ratio on Financial Performance of Islamic Commercial Bank

2018 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Edi Komara
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Operating Income ◽  
Capital Adequacy Ratio ◽  
Income Ratio ◽  
Health Ratio

This study aims to analyse the influence of bank health ratios on the financial performance of Islamic Commercial Banks using the ratio of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) ratio, Operating Expenses Operating Income ratio (OEOI), against Islamic Commercial Bank’s profitability represented by Return on Asset ratio (ROA). The population used in this study is the financial statements of Islamic Commercial Banks period 2015 until 2017. Types of quantitative data with library data collection techniques, and documentation. Technical analysis of data using multiple linear regression analysis with the help of SPSS 20 program. The results showed that health variables (CAR, LDR, and OEOI) simultaneously affect the Financial Performance of Islamic Commercial Banks. Partially CAR has no significant effect on ROA, LDR has no significant effect on ROA. The effect of OEOI on ROA is partial.

scholarly journals The Influence of Good Corporate Governance and Capital Structure on Firm Value: The Mediation Role of Financial Performance

2020 ◽  
Vol 35 (2) ◽  
pp. 230
Author(s):  
Ridwan Nurazi ◽  
Intan Zoraya ◽  
Akram Harmoni Wiardi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Value ◽  
Good Corporate Governance ◽  
The Impact

<pre>The objective of this study is empirically identify the impacts of Good Corporate Governance and capital structure on firm value with financial performance as intervening variable. We operate quantitative approach within the scope of manufacturing company of metal, chemical, and plastic packaging sector which listed in Indonesia Stock Exchange during the 2017-2018 periods as the population. Samples are chosen by purposive sampling method inwhich the company must report the financial statement in a row, obtained 79 observations. The data analysis technique used is financial ratio analysis to determine the condition of the business financial ratios of the variables studied. Data were analyzed using multiple linear regression analysis. The result shows that corporate governance and capital structure influence the firm value, moreover the use of institutional ownership ratio and capital structure will increase the value of the firm. The result also shows that the impact of Corporate governance and capital structure on the company value are mediated by financial performance. It means that the value of the firm can increase if the company able became an effective monitoring tool.</pre>

scholarly journals The Impact of BASEL Accords on the Management of Vietnamese Commercial Banks

2020 ◽  
Vol 13 (10) ◽  
pp. 228
Author(s):  
Hai Long Pham ◽  
Kevin James Daly
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Value At Risk ◽  
Banking System ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Equation Modeling ◽  
Least Squares Regression ◽  
Basel Accord ◽  
The Impact

This paper is an attempt to empirically examine the impact of Basel Accord regulatory guidelines on the risk-based capital adequacy regulation and bank risk management of Vietnamese commercial banks. Our research aims to assess how Vietnamese commercial banks manage their capital ratio and bank risk under the latest Basel Accord capital adequacy ratio requirements. Building on previous studies, this research uses a simultaneous equation modeling (SiEM) with three-stage least squares regression (3SLS) to analyze the endogenous relationship between risk-based capital adequacy standards and bank risk management. A year dummy variable (dy2013) is included in the model to take account of changes in the regulation of the Vietnamese banking system. Furthermore, we add a value-at-risk variable developed by as an independent variable into equations of the empirical models. The results reveal a significant impact of Basel capital adequacy regulatory pressure on the risk-based capital adequacy standards and bank risk management of Vietnamese commercial banks. Moreover, banks under the latest Basel capital adequacy regulations are induced to reduce risks and increase banks’ financial performance.

scholarly journals The Impact of Corporate Social Responsibility on Firm’s Financial Performance in Malaysia

2018 ◽  
Vol 13 (3) ◽  
pp. 220
Author(s):  
Dilashenyi Devi Selvarajah ◽  
Uma Murthy ◽  
Mathavi Massilamani
Keyword(s):  
Financial Performance ◽  
Employee Engagement ◽  
Quantitative Research ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Research Approach ◽  
Business Risk ◽  
Company Reputation ◽  
The Impact

The present research aims at investigating the impact of CSR on firm’s financial performance in Malaysia. Based on gaps in extant literature, the current study hypothesizes that four (4) independent variables comprising business risk, company reputation, employee engagement and stakeholder concern will exert statistically significant influences on the dependent variable, firm’s financial performance. The research employs a quantitative research approach whereby a sample 153 respondents were collected using a stratified random sampling technique. Employing SPSS software, multiple linear regression analysis was carried out. The results of multiple regression revealed that out of the four (4) hypotheses of the research, three (3) were supported whilst one (1) was not. In particular, it was shown that business risk, company reputation and stakeholder concern exert statistically significant influences on firm’s financial performance. However, there was no enough evidence to support the claim that employee engage can significantly influence firm’s financial performance. Several implications from the research were further discussed and elaborated.

scholarly journals Pengaruh CAR, FDR, Dan BOPO Terhadap ROA Pada Bank Syariah Di Indonesia

2021 ◽  
Vol 9 (2) ◽  
Author(s):  
Intan Rika Yuliana ◽  
Sinta Listari
Keyword(s):  
Commercial Banks ◽  
Quantitative Research ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Predictive Ability ◽  
Multiple Linear Regression Analysis ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Operating Income ◽  
Capital Adequacy Ratio

Banking companies, including Islamic banking, need to avoid problems that can cause financial failure, which can make the bank unable to carry out its business operations and may end up in bankruptcy, so that the level of soundness of the bank based on risk must always be monitored. Therefore, banks must maintain their financial ratios in accordance with Bank Indonesia decisions and maintain their performance. So analyzing the effect of the Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), and the Ratio of Operating Costs to Operating Income (BOPO) on Return On Assets (ROA) in Islamic Banks is considered very important.   This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), and Operational Costs on Operating Income (BOPO) on Return On Assets (ROA) at Islamic Commercial Banks in Indonesia. This research includes quantitative research and the type of data used is secondary data. The data used in this study is the ratio of CAR, FDR, BOPO, and ROA for the period 2014–2019 which was obtained from the annual Financial Statements on the official website of each bank.   The population in this study were 14 Islamic Commercial Banks in Indonesia. After passing the purposive sampling stage, there were 6 samples of Sharia Commercial Banks that were suitable for use, namely BCA Syariah, BNI Syariah, Bank Mega Syariah, Bank Muamalat Indonesia, Bank Panin Dubai Syariah and BRI Syariah. The analytical method used in this research is Multiple Linear Regression Analysis.   The results of the partial study with the t-test showed that the CAR and FDR variables had a positive and significant effect on the ROA of Islamic commercial banks. While the BOPO variable has a negative and significant effect on the ROA of Islamic commercial banks. And the results of the f test show that the CAR, FDR, and BOPO variables together have a significant influence on the ROA of Islamic commercial banks. The predictive ability of these three variables on ROA is 82.7%, the remaining 17.3% is explained by other variables outside of this research.   Keywords: Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Operating Expenses per Operating Income (BOPO), Return On Assets (ROA)

scholarly journals FINANCIAL PERFORMANCE OF ISLAMIC BANKING AFTER THE GLOBAL FINANCIAL CRISIS: A COMPARISON BETWEEN ISLAMIC COMMERCIAL BANKS AND ISLAMIC BUSINESS UNIT BANKS IN INDONESIA

2017 ◽  
Vol 4 (1) ◽  
pp. 149
Author(s):  
Laili Rahmi
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Risk Ratio ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Islamic Banking ◽  
Business Unit ◽  
Significant Difference ◽  
The Global Financial Crisis ◽  
The Impact

<p>The global financial crisis has affected some industries or non-industries around the world. It has also impacted to Islamic banking in Indonesia, especially after 2007-2008. It has been recorded the Islamic banking industry in Indonesia shows a speedy recovery from the impact of the global financial crisis. Thus, this study aims to evaluate and examine the differences of Islamic banking’s financial performance after the global financial crisis in Indonesia. The financial performances in this study are profitability ratio (Return on Asset (ROA) and Return on Equity (ROE)), liquidity ratio (Financing to Deposit Ratio (FDR) and Current Asset Ratio (CAR)) and solvency risk ratio (Equity Multiplier (EM) and Debt to Equity Ratio (DER)). The samples in this study are the six Islamic banks from Islamic Commercial Banks (Bank Usaha Sharia (BUS)) and Islamic Business Unit Banks (Unit Usaha Sharia (UUS)) in Indonesia. Based on the results shows by the descriptive statistic, UUS is more effective in using their assets to generate income compared to BUS, but BUS is greater to manage their financing and more liquid than UUS whose has higher risk than BUS during 2009-2013. Independent sample t-test shows that there is significant difference in terms of profitability, liquidity and solvency risk ratio between BUS and UUS Indonesia during 2009-2013</p>

Sign in / Sign up

Export Citation Format

Share Document