scholarly journals Performance of Banks in Pakistan based on determinants of Profitability

2021 ◽  
Vol 2 (2) ◽  
pp. 139-148
Author(s):  
AQSA SIDDIQ ◽  
KHURSHEED IQBAL ◽  
SHAMS UR REHMAN
Keyword(s):  
Banking Sector ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Strategic Decision ◽  
Return On Assets ◽  
Return On Equity ◽  
Effect Model ◽  
Main Determinants

The study aims to seek the internal factors that affect the profitability of banks in Pakistan from a period of 2009 to 2013 by using two proxies i.e. Return on Assets (ROA) and Return on Equity (ROE). The panel data of fifteen banks have been obtained from the financial statements of the banks. Therefore, Hausman test has verified that random effect model is most appropriate model for Return on Assets (ROA), conversely fixed effect model is prominent for Return on Equity (ROE) for the current study. The empirical results confirm that investment to total assets, leverage, Net Performing Loan (NPL) to gross advances, capital ratio and total deposits to total equity are the main determinants of profitability across both proxies (i.e. ROA and ROE). Leverage and capital ratio have significantly negative, however net performing loan to gross advance and total deposit to total equity have significantly positive influence on profitability of banks across both models. Moreover, NPL to gross advance is insignificant determinant of Return on Equity. The results are worthy for bankers and all stakeholders to make strategic decision for the competitiveness of banking sector in Pakistan.

Effect of Dividend on Stock Price: A Case of Fuel and Power Industries in Bangladesh

2019 ◽  
Vol 9 (2) ◽  
pp. 87
Author(s):  
Mir Md Nazrul Islam
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Return On Equity ◽  
Share Prices ◽  
Earnings Per Share ◽  
Effect Model

Dividend policy is an extensively researched topic in the arena of investments but still it remains an enigmatic that whether Dividend Policy affects the Stock Prices or not. The consequences of researches conducted in different stock markets are different. In Bangladesh, capital market investment is very essential and significant for the growth and market capitalization of domestic industry, trade and commerce. In current years Bangladesh had faced many precarious situations in its stock market. The Stock price reactions to the declaration of dividend of the fuel and power industry of Bangladesh are empirically examined. This study examines stock price reactions of listed dividend paying fuel and power industries in Dhaka stock exchange, Bangladesh for period of 11 years from of 2008-2018. This study will help us to make effective dividend decisions and effective implementation of dividend policies. In this study, Fixed Effect Model along with Random Effect Model have been used to estimate results. Both Models are implemented on panel data for explaining the association between dividend payments and share prices while controlling logarithm value of Profit after Tax, Earnings per Share and Return on Equity. The research is accompanied with a view to find whether the dividend announcement convey any evidence to the market that results a stock price volatility for adjusting the dividend announcement information while controlling the variables like Profit After Tax Earnings, Per Share and Return on Equity. The study also tested both the Models and found Random Effect Model is more significant than Fixed Effect Model. The result documented on the Random Effect Model shows that there are significant relationship with Retention Ratio, dividend per share and Return on Equity. In addition, Profit after tax shows the negative significant association and Earning per Shares insignificant with the share prices in Bangladesh Fuel and Power sector. 

scholarly journals Effects of Capital Structure on Financial Performance of Insurance Companies in Nepal

2020 ◽  
Vol 10 (3) ◽  
pp. 35
Author(s):  
Bishnu Prasad Bhattarai
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Annual Report ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Insurance Companies ◽  
Return On Assets ◽  
Total Debt ◽  
Effect Model

The study has examined the effects of capital structure on financial performance of insurance companies in Nepal. Data were collected from the annual report of the respective insurance companies' web site. The panel data of 14 Nepalese insurance companies from 2007/08 to 2015/16, leading to a total of 126 observations. The data were analyzed using pooled OLS model, random effect model and fixed effect model. The study has been return on assets as dependent variable whereas total debt ratio, equity to total assets, leverage, firm size, liquidity ratio and assets tangibility are independent variables. The result concluded that equity to total assets, leverage, and assets tangibility have effects the financial performance in Nepalese insurance companies' cases.

Does Financing Structure Relates to Liquidity Risk? A Comparative Study of Islamic and Conventional Banks of Pakistan

2021 ◽  
Vol 1 (1) ◽  
pp. 72-85
Author(s):  
Hussain Mohi-ud-Din Qadri ◽  
Atta UI Mustafa ◽  
Hassnian Ali
Keyword(s):  
Banking Sector ◽  
Random Effect ◽  
Random Effect Model ◽  
Liquidity Risk ◽  
Strong Relationship ◽  
Fixed Effect Model ◽  
Long Run ◽  
Effect Model ◽  
Short Run ◽  
Conventional Banks

The purpose of this paper is to find out whether financing in specific sectors increase bank liquidity risk and how this goes on with both Islamic and conventional banks. The paper used pooled regression, fixed effect model and random effect model decided on the basis of dummy joint significant test. The result shows that only financing concentration (SPEC) proved to have significant association with Islamic and overall banking sector for short run. And all other banks specific variables are unable to show a significant result. While the macroeconomic variable GDP and Inflation have a strong relationship in both long run and short run time period. This paper add value to the existing literature on liquidity risk under the new indicators issued by Basel III.

scholarly journals Determinants of capital adequacy ratio in Kuwaiti banks

2015 ◽  
Vol 4 (4) ◽  
pp. 315-322 ◽  
Author(s):  
Moeidh Alajmi ◽  
Khalid Alqasem
Keyword(s):  
Random Effect ◽  
Random Effect Model ◽  
Negative Relationship ◽  
Fixed Effect Model ◽  
Capital Adequacy ◽  
Dividend Payout ◽  
Return On Equity ◽  
Five Factors ◽  
Effect Model ◽  
Capital Adequacy Ratio

The aim of this study is to identify the effects of seven internal factors of five conventional Kuwaiti banks on capital adequacy ratio (CAR). The five factors are: Loans to Assets, Loans to Deposits, Non-Performing Loans to Total Loans, Return on Assets, Return on Equity, Dividend Payout and Total Liability to Total Assets. The study covers the period from 2005 to 2013. The study shows that under fixed effect model, variables DIVIEDEND, LAR, LDR, NPLLR, and ROE do not have any impact on capital adequacy ratio. However, SIZE has a significant and negative relationship with capital adequacy ratio. Also, ROA shows a significant and negative relationship with capital adequacy ratio. Under random effect model, results indicate that CAR is adversely affected by bank’s SIZE (total liability to assets), and ROA has a significant and negative relationship with capital adequacy ratio, However, Loan to Deposit Ratio (LDR) showed a significant and positive relationship with capital adequacy ratio. On the other hand, dividend payout, loans to assets, Non-Performing Loans to Total Loans and Return on equity do not have significant effect on CAR under random effect model.

scholarly journals Financial Determinants of Qardhul Hasan Financing Growth: Evidence from Islamic Banks in Indonesia

2016 ◽  
Vol 3 (1) ◽  
pp. 038
Author(s):  
Agus Saur Utomo ◽  
Novita Kusuma Maharani ◽  
Danes Quirira Octavio
Keyword(s):  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Effect Model ◽  
Capital Adequacy Ratio ◽  
Interest Margin

The purpose of this paper is to investigate the financial factors that determine the growth of qardhul hasan financing in the sharia banks in Indonesia. We employ financial ratios such as Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Net Interest Margin (NIM), Operational Cost to Operational Income (BOPO), Return on Asset (ROA) and Return on Equity (ROE) to explain the growth of qardhul hasan during 2011 to 2014.  This paper utilizes the fixed effect model and the random effect model to provide empirical evidences. The empirical result demonstrates that Non-Performing Financing (NPF), Net Interest Margin (NIM), Return on Asset (ROA) and BOPO have significance relationship to the qardhul hasan financing. The finding shows that the growth of qardhul hasan financing in sharia banks is influenced by financial ratios of NIM, NPF, BOPO and ROA. This finding adds important evidence to the existing research on qardhul hasan financing in sharia banks.

An Analysis of Factors Affecting Student Dropout: The Case of Tunisian Universities

2021 ◽  
pp. 105678792110231
Author(s):  
Samir Srairi
Keyword(s):  
Random Effect ◽  
Random Effect Model ◽  
Dropout Rate ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Least Square ◽  
University Education ◽  
Positive Interaction ◽  
Student Dropout ◽  
Effect Model

The purpose of this paper is to analyze the determinants of university dropout in the first year of bachelor programs at Tunisian universities. We consider 160 higher education institutions with an average of 671 bachelor study programs per year from 2013 to 2018. Using several econometric models (pooled ordinary least square, fixed effect model, and random effect model), we regress student dropout rate on four categories of indicators: student characteristics, and institutional, contextual, and external factors. The estimation results suggest that the institutional characteristics have a significant impact on dropouts. The findings show that student–staff ratio has a positive influence on student dropout. We also find a negative association between staff quality and dropout rate. In addition, the analysis reveals the importance of contextual factors such as university accommodation in helping students to complete university education. Finally, regression also indicates a significant and positive interaction between unemployment rate and the dropout rate.

scholarly journals PENGARUH STRUKTUR DAN KONSENTRASI KEPEMILIKAN, MODEL BANK PADA KINERJA PERBANKAN

2020 ◽  
Vol 5 (2) ◽  
pp. 162
Author(s):  
Nadya Dianitasari ◽  
Hersugondo Hersugondo
Keyword(s):  
Financial Performance ◽  
Random Effect ◽  
Random Effect Model ◽  
State Ownership ◽  
Ownership Concentration ◽  
Return On Assets ◽  
Purposive Sampling ◽  
Effect Model ◽  
Analysis Technique ◽  
Model Bank

<p><em>This study aims to analyze the effect of banks model, the different types of ownership, and ownership concentration on bank financial performance. State ownership, domestic ownership and foreign ownersip were used as the ownership indicators and Return On Asset (ROA) ratio were used as the proxied of financial performance. The Population that was used in this research consisted of all conventional and islamic commercial banks which is listed in Directory of Indonesian Banking 2018 and published the financial statements during 2014-2019. After passed the purposive sampling method there were 94 banks obtained as samples. The data analysis technique used is descriptive statistic, classical assumption test and panel regression test with random effect model. The result of this research showed that banks model and state ownership have positively significant impact on ROA and foreign ownership has negatively significant impact while domestic ownership and ownership concentration have insignificantly impact on bank financial performance</em></p><p><em><br /></em></p><p><em>Penelitian ini memiliki tujuan yaitu untuk menganalisis pengaruh struktur kepemilikan bank yang terdiri dari kepemilikan pemerintah, domestik dan asing, lalu model bank dan konsentrasi kepemilikan terhadap kinerja keuangan perbankan. Kinerja keuangan tersebut diukur dengan rasio profitabilitas yang diproksikan dengan Return On Assets (ROA). Populasi penelitian yang digunakan adalah bank umum syariah dan konvensional di Indonesia yang terdapat pada daftar Direktori Perbankan tahun 2018. Penelitian ini menggunakan sejumlah 94 sampel dengan metode purposive sampling. Metode analisis yang digunakan pada penelitian ini adalah statistik deskriptif, uji asumsi klasik dan regresi data panel dengan model efek random. Hasil yang didapat pada penelitian ini menunjukkan bahwa model bank dan kepemilikan pemerintah berpengaruh positif signifikan terhadap ROA dan kepemilikan asing berpengaruh negatif signifikan, sedangkan kepemilikan domestik dan konsentrasi kepemilikan tidak berpengaruh signifikan terhadap kinerja bank.</em></p>

scholarly journals The Correlation of Glycemic Index, Glycemic Load, and Carbohydrates with the Risk of Hepatocellular Carcinoma: A Systematic Review and Meta-Analysis

2021 ◽  
Author(s):  
Long-Shan Yang ◽  
Guang-Xiao Meng ◽  
Zi-Niu Ding ◽  
Lun-Jie Yan ◽  
Sheng-Yu Yao ◽  
...  
Keyword(s):  
Hepatocellular Carcinoma ◽  
Glycemic Index ◽  
Hepatitis Virus ◽  
Meta Analysis ◽  
Glycemic Load ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Case Control Studies ◽  
Effect Model

Abstract Background Glycemic index (GI), glycemic load (GL), and carbohydrates have been shown to be associated with a variety of cancers, but their correlation with hepatocellular carcinoma (HCC) remains controversial. The purpose of our study was to investigate the correlation of GI, GL and carbohydrate with risk of HCC.Methods Systematic searches were conducted in PubMed, Embase and Web of Science until November 2020. According to the size of heterogeneity, the random effect model or the fixed effect model was performed to calculate the pooled relative risks (RRs) and 95% confidence intervals (CIs) for the correlation of GI, GL, and carbohydrates with the risk of HCC.Results Seven cohort studies involving 1,193,523 participants and 1,004 cases, and 3 case-control studies involving 827 cases and 5,502 controls were eventually included. The pooled results showed no significant correlation of GI (RR=1.11, 95%CI 0.80-1.53, I2= 62.2%), GL (RR=1.09, 95%CI 0.76-1.55, I2 = 66%), and carbohydrate (RR=1.09, 95%CI 0.84-1.32, I2=0%) with the risk of HCC in general population. Subgroup analysis revealed that in hepatitis B virus (HBV) or/and hepatitis C virus (HCV)-positive group, GI was not correlated with the risk of HCC (RR=0.65, 95%CI 0.32-1.32, p=0.475, I2=0.0%), while GL was significantly correlated with the risk of HCC (RR=1.52, 95%CI 1.04-2.23, p=0.016, I2=70.9%). In contrast, in HBV and HCV-negative group, both GI (RR=1.23, 95%CI 0.88-1.70, p=0.222, I2=33.6%) and GL (RR=1.17, 95% CI 0.83-1.64, p=0.648, I2=0%) were not correlated with the risk of HCC. Conclusion A high GL diet is correlated with a higher risk of HCC in people with hepatitis virus. A low GL diet may be recommended for patients with viral hepatitis to reduce the risk of HCC.

Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach

2016 ◽  
Vol 9 (2) ◽  
pp. 148-172 ◽  
Author(s):  
Anjala Kalsie ◽  
Shikha Mittal Shrivastav
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Least Square ◽  
Empirical Literature ◽  
Board Size ◽  
Effect Model

This article seeks to examine the relationship between the board size and firm performance. Existing literature on board size is based on different theories of corporate governance. While agency theory and resource dependency theory suggest that the board size positively affects performance, stewardship theory favours smaller board size and argues that larger board size negatively impacts the firm performance. The present article adds to the empirical literature by employing panel data analysis of 145 non-financial companies listed in the NSE CNX 200 Index of India corresponding to 16 industries. The study is carried out for a period of five years from 2008 to 2012. The firm performance has been measured using Tobin’s Q and the market-to-book value ratio (MBVR) as market-based measures and return on assets (ROA) and return on capital employed (ROCE) as accounting-based measures. The fixed effect model, random effect model and feasible generalised least square (FGLS) regression models are applied to achieve the above-mentioned objectives. The results conclude that the board size has a positive and significant impact on the firm performance.

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