scholarly journals Efficiency, productivity and stock performance: Evidence from the Turkish banking sector

2011 ◽  
Vol 58 (3) ◽  
pp. 355-372 ◽  
Author(s):  
Saadet Kasman ◽  
Adnan Kasman
Keyword(s):  
Stock Returns ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
Scale Efficiency ◽  
Bank Performance ◽  
Stock Performance ◽  
The Relationship ◽  
Efficiency And Productivity ◽  
Measures Of Performance

This paper investigates the link between stock performance of the listed commercial banks in the Turkish stock exchange and three measures of bank performance, such as technical efficiency, scale efficiency and productivity for the period 1998-2008. The relationship between efficiency and stock returns is investigated by running a regression of stock returns on measures of performance and some bank specific variables. The results indicate that the changes in three measures of performance have positive and significant effect on stock returns, suggesting that stocks of technical efficient, scale efficient and productive banks tend to outperform their inefficient and unproductive rivals.

scholarly journals Do Investors Value Environmental Corporate Policies? Evidence from the Australian Market

2021 ◽  
Vol 14 (3) ◽  
pp. 124
Author(s):  
Mohinesh Chandra ◽  
Alireza Tourani-Rad
Keyword(s):  
Stock Returns ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Market Value ◽  
Environmental Policies ◽  
Social Policies ◽  
Corporate Policies ◽  
Stock Performance ◽  
Reduce Emissions ◽  
The Relationship

In this paper, we explore the relationship between a firm’s environmental policies and their risk-adjusted stock returns, using a sample of stock exchange-listed Australian firms over the period of 2010–2018. We observed a positive and statistically significant relationship suggesting that a firm’s environmental policies partially explain their stock performance. Moreover, we found that investors in the Australian market significantly value a companies’ efforts to reduce emissions, and that this primarily drives the investors’ observed reaction to a firm’s social corporate policies. Next, we formed portfolios and observed that portfolios formed on high environmental, social, and governance (ESG) Environmental Pillar scores consistently outperformed those formed on low-ESG Environmental Pillar scores. Overall, our results lend support to the notion that investors in the Australian market value information about a firm’s social policies.

scholarly journals Relationship Between Capital Structure and Stock Returns of Jordanian Commercial Banks

2020 ◽  
Vol 13 (2) ◽  
pp. 100
Author(s):  
Sufian Radwan Al-Manaseer
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Firm Size ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
The Impact ◽  
The Relationship

This study aims to analyze the relationship between capital structure and stock returns of Jordanian banks listed on the Amman Stock Exchange from 2009 to 2018. The study sample is composed of 13 commercial banks in Jordan. The e-views program is used to conduct the statistical analysis of study variables. Initially, a simple linear regression analysis is conducted to determine the impact of capital structure as measured by financial leverage on stock returns and vice versa. Then, several control variables are added: growth in assets, liquidity, firm size, and profitability. This study has found that growth, capital structure, and profitability have a positive impact on stock returns. By contrast, liquidity and firm size have a negative impact on stock returns. Stock returns and firm size have a positive impact on capital structure, whereas liquidity, growth, and profitability have a negative impact on capital structure.

scholarly journals Nexus of Market Risk, Dividend Policy and Commercial Banks’ Performance in Sub-Saharan Africa

2020 ◽  
Vol 20 (2) ◽  
pp. 279-297
Author(s):  
Odunayo M. Olarewaju
Keyword(s):  
Commercial Banks ◽  
Dividend Policy ◽  
Banking Sector ◽  
Market Risk ◽  
Agency Cost ◽  
Sub Saharan Africa ◽  
Bank Performance ◽  
Long Run ◽  
Sub Saharan ◽  
The Relationship

Abstract Research Background: The concept of risk is of great importance in any financial system, due to unstable economic situations and fluctuating environmental factors. Like other variables, risk has a significant effect on firms’ returns and profit. Purpose: This study aims at examining the relationship between dividend policy and performance taking cognisance of the uncontrollable risk (market risk). Research methodology: This study was modelled using 250 commercial banks from 30 selected Sub-Saharan African countries in the period 2008 to 2017. The Panel-Vector Error Correction Model was used to estimate the model. Result: From the long run analysis, a long run relationship between dividend policy, agency cost, and bank performance is evident. The disequilibrium will take about 39.5% yearly speed of adjustment to return to a steady state. There is an inverse relationship between Lending interest rate (market risk proxy) with bank performance while there is a positive relationship of foreign exchange rate (market risk proxy) and bank performance in SSA. Novelty: Market risk’s influence on the relationship between dividend policy and bank performance was firstly established. Therefore, it is recommended that the banking sector in SSA should focus more on endogenous factors and review some of their policies as these contribute more significantly to variations in their performance than exogenous factors.

scholarly journals Pengaruh Internet Banking, Risiko Kredit dan Ukuran Perusahaan Terhadap Kinerja Keuangan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2017 - 2019

2020 ◽  
Vol 4 (1) ◽  
pp. 166-177
Author(s):  
Siska Wulandari ◽  
Nunuk Novitasari
Keyword(s):  
Linear Regression ◽  
Credit Risk ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Internet Banking ◽  
Bank Performance ◽  
Company Size ◽  
Use Of Internet ◽  
The Relationship ◽  
Positive Effect

The purpose of this study is to view, analyze, and test the relationship between internet banking and bank performance. The banks used are those listed on the Indonesia Stock Exchange (IDX) in 2019. The method is Multiple Linear Regression by adding two control variables, namely credit risk measured by the NPL ratio and company size measured by the log of total assets with ROA as a measure of the Bank's performance. The findings of this study indicate that internet banking has a positive effect on ROA. The use of internet banking can increase ROA. Commercial banks play a big role in changing (growing) the economy of each country. NPL has a negative and significant effect on ROA. This means that it illustrates an inverse comparison between credit risk and bank performance. If credit risk increases, it will reduce ROA. Company size has a negative and insignificant effect on ROA, it is suspected that the cause is that large assets are not necessarily supported by good management. Company size cannot be used as a guarantee that large companies have good performance, large companies, of course, the costs incurred are also large. resulting in lowering ROA.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

Do Financially Constrained Firms Earn Higher Returns than the Unconstrained Firms? A Comprehensive Evidence from Pakistan Stock Exchange

2020 ◽  
Keyword(s):  
Time Series ◽  
Asset Pricing ◽  
Capital Structure ◽  
Stock Returns ◽  
Financial Constraints ◽  
Stock Exchange ◽  
Cash Flows ◽  
Total Asset ◽  
Cash Holding ◽  
The Relationship

This paper examines the relationship between financial constraints and the stock returns explaining the pricing of stock through financially constrained and unconstrained firms in Pakistan. Three proxies; total assets, tangible to total assets and cash holding to total assets ratios) have been used for financial constraints and the study tried to investigate that either the investors are compensated for taking the extra risk or not in Pakistan Stock Exchange (PSX). We find that the financially constrained firms don’t earn higher returns when their capital structure is heavy with liquid assets and their cash flows are more than the unconstrained firms in PSX. Moreover, the time series results showed that the risk-adjusted returns of the most constrained firms give the mix and somewhat negative and significant and insignificant results for the Pakistani firms listed in PSX sorted based on tangible to total assets and Cash holding to total asset ratios. Keywords: Asset Pricing, Financial constraints, risk-adjusted performance of portfolios

scholarly journals Examining banking productivity drivers in MENA banks after financial liberalisation in 1990s

2019 ◽  
Vol 8 (1) ◽  
pp. 59-74
Author(s):  
Hatem Elfeituri
Keyword(s):  
Commercial Banks ◽  
Technological Progress ◽  
Banking Sector ◽  
State Ownership ◽  
Scale Efficiency ◽  
Efficiency Change ◽  
Mena Countries ◽  
Financial Liberalisation ◽  
The Impact ◽  
Banking Productivity

The paper investigates whether deregulation and economic reforms have transformed the MENA banking sector into a more productive and efficient sector. This is the first study to cover a large sample of 11 MENA countries for an extended and recent period (1999-2012). Initially, this paper estimates the productivity and efficiency of MENA commercial banks using Malmquist DEA to estimate productivity (TFP), technological and technical efficiency, and scale efficiency change in order to investigate to what extent banking productivity in MENA economies has improved during the study period. Then, Tobit model is employed to examine the impact of bank and macroeconomic variables on the total factor productivity of MENA commercial banks. The obtained MPI results suggest that commercial banks operating in the Gulf countries have exhibited productivity progress mostly due to the technological progress rather than efficiency change. Results also suggest that expenses preference behaviour would help banks to enhance their productivity in the examined period and MENA countries. Whilst banking productivity is improved by financial reforms and technological progress, such findings overall do not indicate that foreign participation or state ownership lead to enhance productivity of banks, whilst suggesting that a number of sound policies should be implemented taking into account the characteristics of banking sector in MENA countries.

scholarly journals PENGARUH PENERBITAN SUKUK TERHADAP REAKSI PASAR (SURVEY TERHADAP PERUSAHAAN-PERUSAHAAN YANG MENERBITKAN OBLIGASI SYARIAH YANG TERDAFTAR DIBURSA EFEK INDONESIA SELAMA TAHUN 2015)

2019 ◽  
Vol 4 (3) ◽  
pp. 496-503
Author(s):  
Mulya Iskandar ◽  
Ridwan Ridwan
Keyword(s):  
Stock Returns ◽  
Abnormal Return ◽  
Research Method ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Cumulative Abnormal Return ◽  
Market Reactions ◽  
Independent Variables ◽  
The Relationship

This study aims to determine how the influence of a sukuk instrument issuance on market reactions listed on the Indonesia Stock Exchange (IDX) during 2015. The research method used in this study is quantitative research. Quantitative research contains a relationship between cause and effect. The type of data used is secondary data, data collection used by the author is to know the relationship between two or more variables. The object to be examined in this study is the total value and rating of the issuance of Islamic bonds (sukuk) companies as independent variables and cumulative abnormal return shares of companies that issue Islamic bonds (sukuk) listed on the Indonesia Stock Exchange in 2015. The results of this study indicate the value of sukuk bond issuance and sukuk bond issuance ratings jointly affect stock returns. The value of issuing sukuk bonds partially affects stock returns and the rating of bond issuance has an effect on return.

scholarly journals Effect of Emotional Intelligence and trust on Bank performance (Evidence SME’s in Indonesia)

2019 ◽  
Vol 12 (3) ◽  
pp. 1848-1855
Author(s):  
Titok Waskito Adi ◽  
Budi Prasetyo ◽  
Erlyna Hidyantari
Keyword(s):  
Factor Analysis ◽  
Emotional Intelligence ◽  
Confirmatory Factor Analysis ◽  
Correlation Analysis ◽  
Financial Performance ◽  
Banking Sector ◽  
Bank Performance ◽  
Confirmatory Factor ◽  
The Relationship ◽  
Practical Implications

This study aims to analyze trust in the relationship between staff and customers in the banking sector, its influence on financial performance in the level of emotional intelligence (EI) and their trust. Respondents were asked to complete EI tests and questions related to trust behavior. Exploratory factor analysis and confirmatory factor analysis and correlation analysis are used to identify relationships. Trust's findings are known to consist of three components: trustworthy; knowledge; and expectations. Furthermore, there is a significant correlation between trust and EI, when compared to the financial performance of relationship managers. Research weaknesses/ implications The method used by banks in collecting performance data limits the analysis that can be held. Practical implications increasing relationship manager awareness of their own emotions, and how they perceive and act on the emotions of others, will positively influence financial performance.

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