scholarly journals Linking Non-Performing Loans with Organizational Performance: Evidence from Banking Sector of Pakistan

2019 ◽  
Vol IV (IV) ◽  
pp. 35-44
Author(s):  
Amna Sana ◽  
Mohammad Fayaz ◽  
Rahman Ullah
Keyword(s):  
Organizational Performance ◽  
Banking Sector ◽  
Least Square ◽  
Bank Profitability ◽  
Asset Return ◽  
Return On Equity ◽  
Share Prices ◽  
Ordinary Least Square Regression ◽  
Econometric Tests ◽  
Contemporary Study

The contemporary study explored the impacts of nonperforming loans on banks profitability. In order to find the effects of non-performing loans on bank profitability, the study included controlled variables as deposit to total assets, liability to total assets and size of the bank. The study population comprises of Pakistani commercial banks. The study sample is made up of 10 years of data from 2006 to 2015. By testing the hypotheses, diverse econometric tests corresponding correlation, ordinary least square regression and autoregressive model were applied. The study originated a negative and significant association of non-performing loans on bank profitability. Deposit to total assets have positive, however insignificant association with bank profitability (return on asset, return on equity). Liability to total assets has negative significant relation with bank profitability. In the same way, the study also established a positive and significant relationship of the size of the bank and banks profitability. The study also found that NPLs is negatively associated with share prices.

scholarly journals Antecedents of Financial Performance of Banking Sector: Panel Analysis of Islamic, Conventional and Mix Banks in Pakistan

2015 ◽  
Vol 1 (1) ◽  
pp. 9-30 ◽  
Author(s):  
Irum Saba ◽  
Rabia Kibriya ◽  
Rehana Kouser
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Fixed Effect Model ◽  
Least Square ◽  
Panel Regression ◽  
Internal Factors ◽  
Bank Profitability ◽  
Return On Equity ◽  
Asset Quality ◽  
Macroeconomic Determinants

Objective: This paper analyzes bank-specific, industry-specific and macroeconomic determinants of bank profitability on the sample of 25 banks, 161 observations on the Pakistani banking system in the period between 2006 and 2012. Our dependent variables include Return on Equity, Return on Assets and Earning per Share and independent variables consist of 'bank-specific determinants', industry-specific determinants', and 'macroeconomic determinants'. State Bank of Pakistan provides the data for internal factors on a yearly basis. Methodology: Different statistical techniques are used step by step to empirically test the relationship between the variables and to draw conclusions from the results of the study. Firstly, to analyze the features of the profitability determinants descriptive statistics are used. Secondly, we examine the causal relationship between bank-specific, industry specific, macroeconomic variables and profitability variables, Pearson's coefficient of correlation is used.  Panel data are used in this study so the technique used for regression is a panel regression technique which includes the pooled Ordinary Least Square, Random Effects Model and Fixed Effect Model. Hausman test is used to analyze that which technique for panel regression is more suitable for study. Results: According to the obtained results, among internal factors of bank profitability, firm size are the most important factor. Profitability is influenced by liquidity, asset quality and leverage condition of the banks. Regarding the external variables, inflation and interest rate show significant effect on bank profitability. Islamic banks show significant positive relationship with commercial banks.

Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial Firms in Pakistan

GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Return On Equity ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Ordinary Least Square Regression

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.

scholarly journals The performance of Shariah-compliant companies during and after the recession period – evidence from companies listed on the FTSE All World Index

2020 ◽  
Vol 11 (3) ◽  
pp. 573-587 ◽  
Author(s):  
Muhammad Tahir ◽  
Salma Ibrahim
Keyword(s):  
Least Square ◽  
Market Returns ◽  
Content Type ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Price Earnings Ratio ◽  
Negative Effect ◽  
Ordinary Least Square Regression ◽  
Positive Effect ◽  
Recession Period

Purpose The purpose of this study is to investigate the relative performance of Shariah-compliant companies (SCCs) compared to conventional companies. This study focuses on two periods, the first being the recession period of 2007-2010 and the second, the non-recession period of 2011-2014. Design/methodology/approach A quantitative approach is adopted using an ordinary least square regression model. The chosen variables are those used by previous researchers in conventional studies of corporate performance. Data are selected from individual companies listed on the FTSE All World Index. This study examines two periods of time: the recession of 2007-2010 and the post-recession years of 2011-2014 to analyse performance measured by accounting returns (return on equity, return on asset and earnings per share) and market returns (stock return and price/earnings ratio). Findings The study found that SCCs outperformed non-Shariah compliant companies, in terms of both accounting and market returns during both periods. It was also found that size has a negative effect on performance during both periods. The degree of risk, leverage and growth has no significance in either period, but cash flow from operations has a positive effect on performance in both. Research limitations/implications The study could beneficially be extended by the inclusion of corporate governance variables to assess how these affect performance in SCCs. Originality/value In contrast to previous research carried out on indices, this study uses data from individual companies listed on the FTSE All World Index. It provides insight into the way Shariah ethics can influence performance and suggests that some of the features could be useful if adopted by conventional companies.

scholarly journals Effect of Information and Communication Technology (ICT) on Corporate Performance: A Study of Selected Quoted Banks

2021 ◽  
Vol 04 (12) ◽  
Author(s):  
Akujor Jane Chinyere ◽  
Keyword(s):  
Information And Communication Technology ◽  
Communication Technology ◽  
Corporate Performance ◽  
Study Data ◽  
Least Square ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Information And Communication ◽  
Ordinary Least Square Regression ◽  
The Cost

The study investigates the effect of Information and Communication Technology (ICT) on corporate performance using Zenith Bank Nigeria Plc. and United Bank for Africa Plc. asa study. Data were obtained from annual financial statement published by the bank from 2010 -2016.Corporate performance was proxied by Return on Equity, Return on Asset and Earnings per Share. The ordinary least square regression technique with the aid of the statistical package for social sciences (SPSS) version 21were employed in the analysis. Findings revealed that ICT has a very weak (low) effect on corporate performance measured with return on equity, almost no effect at all on corporate performance measured with return on assets, and positive effect on corporate performance measured with earnings per share. Therefore the study recommends that; there is need for the bank management team to prioritize the ICT need of the bank to avoid unnecessary investment on ICT gadgets in order to reduce the cost associated to ICT operations of the bank. Also, staff training and development are paramount to enable the effective and efficient utilization of the ICT resources. Furthermore, government should rise up to her duty to provide enabling environment for the thriving of businesses.

scholarly journals Impact of Entrepreneurial Orientation of Bank Performance in Pakistan

2018 ◽  
Vol 9 (1) ◽  
pp. 290
Author(s):  
Nida Nazar ◽  
Sara Ravan Ramzani ◽  
Temoor Anjum ◽  
Imran Ahmed Shahzad
Keyword(s):  
Organizational Performance ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Association ◽  
Partial Least Square ◽  
Theory And Practice ◽  
Least Square ◽  
Three Dimensions ◽  
The Relationship

The purpose of this study is to empirically test the relationship between entrepreneurial orientation dimensions and organizational performance in banking sector of Pakistan. A deductive approach of logic was adopted to formulate the hypotheses. A structured questionnaire was administered to the banking staff to elicit responses regarding the study variables. In order to test the hypothesized relationship, Partial Least Square Structural equation modelling technique was used. Results of PLS indicated a positive association three dimensions of EO and organizational performance. This study contributes to theory and practice in terms of Pakistani context.

Non-performing Assets and Profitability: Case of Indian Banking Sector

2020 ◽  
pp. 097226292091410 ◽  
Author(s):  
Dolly Gaur ◽  
Dipti Ranjan Mohapatra
Keyword(s):  
Banking Sector ◽  
Random Effect ◽  
Time Frame ◽  
Return On Assets ◽  
Data Set ◽  
Bank Profitability ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Robust Standard Error ◽  
The Impact

At present, the Indian banking sector is facing an arduous time in the form of an increasing trend in non-performing assets (NPAs), which is testing its strength and resilience. The present study aims to explore the NPA–profitability relationship for the Indian banking sector, so as to determine the gravity of the impact that NPAs have on bank profitability. Further, other bank-specific, industry-specific and macroeconomic factors impacting banking profits have been taken under consideration. A balanced panel data set comprising 37 scheduled commercial banks of India over a time frame of 14 years (2005–2018) has been used for the purpose of required analysis. Conclusions have been drawn employing fixed effect and random effect panel regression models. Due to the presence of heteroskedasticity, results for robust standard error have been reported. A highly negative correlation exists between NPA and the two profitability measures return on assets (ROA) and return on equity (ROE). The results of this study have established NPA as the major detractor of banking industry’s profits because NPA carries the most negative regression coefficient which is highly significant. It implies that declining credit quality hampers banks’ performance and leads to their collapse.

scholarly journals An Exploration of the Effect of Customer Relationship Management on Organizational Performance in the Banking Sector

2022 ◽  
Vol 13 (1) ◽  
pp. 0-0
Keyword(s):  
Organizational Performance ◽  
Customer Relationship Management ◽  
Banking Sector ◽  
Relationship Management ◽  
Business Environment ◽  
Partial Least Square ◽  
Customer Relationships ◽  
Least Square ◽  
Customer Relationship ◽  
Positive Effects

The main objective of this paper is to test the linkages among customer relationship management (CRM) practices and organizational performance in Palestinian banking sector. This research relies on an online survey which was designed for gathering the data from several employees who serve in banking sector. A total of 223 responses were considered valid for data analysis using SPSS and partial least square approach (PLS-SEM). Overall, the findings verified that customer orientation and CRM organization have significant positive effects on organizational performance. The outcomes also confirmed that CRM technology and knowledge management play important roles in affecting organizational performance. These findings reveal that the current business environment requires organizations to continuously monitor and manage customer relationships effectively for achieving their long range objectives and responding to emerging challenges.

scholarly journals Factors Affecting Bank Risks in Vietnam

2021 ◽  
Vol 13 (10) ◽  
pp. 42
Author(s):  
Phuong Anh Nguyen ◽  
Thi Thuy Trang Dinh
Keyword(s):  
Banking Sector ◽  
Capital Adequacy ◽  
Internal Variables ◽  
Loan Loss ◽  
Asset Return ◽  
Return On Equity ◽  
Factors Affecting ◽  
Loan Loss Provision ◽  
Gdp Growth Rate ◽  
Bank Risks

The research identifies the determinants of credit risk and insolvency risk in the Vietnamese banking sector. Using the data sample of 25 commercial banks over ten years (2008-2017), we examine the relationship between internal variables, external variables, and bank risks. In this study, the independent variables are bank size, bank capitalization, return on asset, return on equity, loan loss provision, capital adequacy ratio, inflation rate, and GDP growth rate. In contrast, non-performing loans and Z-score are the dependent variables. The empirical results show that all factors have an effect on bank risks except liquidity ratio.

scholarly journals Pengaruh Net Profit Margin, Return On Asset, Return On Equity, dan Earning Per Share Terhadap Harga Saham di Masa Pandemi Covid-19 (Studi Empiris Pada Perusahaan Publik Sektor Pertambangan di Bursa Efek Indonesia)

2021 ◽  
Vol 7 (2) ◽  
pp. 58-68
Author(s):  
Nafis Dwi Kartiko ◽  
Ismi Fathia Rachmi
Keyword(s):  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Profit Margin ◽  
Share Price ◽  
Mining Sector ◽  
Asset Return ◽  
Return On Equity ◽  
Share Prices ◽  
Net Profit

The COVID-19 pandemic has caused disruptions in demand and sales of mining materials. The aftermath of the event affected world mining production. This will certainly affect the Share Price of mining sector companies on the Indonesia Stock Exchange (IDX). This study aims to determine the influence of Net Profit Margin (NPM), Return On Asset (ROA), Return On Equity (ROE), and Earning Per Share (EPS) on Share Prices. The population in this study is mining sector companies registered in IDX period 2020 as many as 49 companies. The data collected comes from the interim financial report data published by IDX every month from March 2020 to December 2020. The analysis method used is multiple linear regression analysis with the help of SPSS 23 software. The results showed that NPM, ROA, ROE, and EPS had a significant impact on the share price.

scholarly journals Corporate Governance Dimensions and Organizational Performance: A Pragmatic Investigation from Nigerian Banks

2019 ◽  
pp. 1-7
Author(s):  
Ogunlade Olabamiji
Keyword(s):  
Corporate Governance ◽  
Organizational Performance ◽  
Banking Sector ◽  
Chief Executive ◽  
Specific Reference ◽  
Monitoring And Control ◽  
Board Size ◽  
Return On Equity ◽  
Earnings Per Share ◽  
The Impact

This study seeks to examine the impact of corporate governance dimensions on organization Performance with specific reference to the Nigerian Banking Industry. Data were sourced via the audited financial statements of the selected bank for a period of five years between 2013 and 2018. Data analysis was performed with the aid of multiple regression analysis and Pearson Product Moment Correlation Coefficient. The result establishes that positive relationship exists between Board independence and organizational performance measured by earnings per share and return on equity. The result further affirms that Board size and Chief executive duality have an inverse effect on organizational performance measured by earnings per share and return on equity. The implication of this that the abolition of Chief executive duality and small Board size would save guide the shareholder interest and enhances effective monitoring and control. Thus, it will attract both foreign and local investors to invest in the banking sector in Nigeria.

Sign in / Sign up

Export Citation Format

Share Document