The Impact of Innovation on Banking Performance: Evidence from Lebanese Banking Sector

This study examines the impact of innovation on performance of the Lebanese banks during 7 years period from 2009 to 2015. Based on a sample of seventeen Lebanese owned commercial banks, a Weighted Least Squares model was employed to investigate the relationship between two banking innovations, namely mobile banking and investment in computer software and banks’ performance as measured by Return-On-Assets and Return-On-Equity. Four control variables were included in the study specifically bank’s capitalization, cost efficiency, asset quality and bank’s size. The findings of the study showed that the two innovations studied have both significant but opposite impact on banks’ performance.

The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

Quantitative Economics and Management Studies ◽

10.35877/454ri.qems194 ◽

2020 ◽

Vol 1 (4) ◽

pp. 260-267

Author(s):

Hafiz Muhammad Naveed ◽

Shoaib Ali ◽

Yao Hongxing ◽

Saqib Altaf ◽

Jan Muhammad Sohu

Keyword(s):

Corporate Governance ◽

Commercial Banks ◽

Banking Sector ◽

Board Independence ◽

Return On Assets ◽

Board Size ◽

Return On Equity ◽

Board Directors ◽

Conventional Banks ◽

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks. We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

Impact of Research and Development on Firm Performance

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v4i1.6087 ◽

2014 ◽

Vol 4 (1) ◽

pp. 357 ◽

Cited By ~ 9

Author(s):

Aimen Ghaffar ◽

Waseem Ahmed Khan

Keyword(s):

Firm Performance ◽

Research And Development ◽

Return On Assets ◽

Return On Equity ◽

Positive Correlation ◽

Important Concept ◽

Independent Variables ◽

Earnings Per Share ◽

The Impact ◽

This study has been conducted to see the impact of research and development budget on the performance of the firms. Research and development is an increasingly important concept in order to have success in this era. The paper finds out the relationship between research and development and firm performance. Firm performance is measured through the ratios of return on assets, return on equity and the earnings per share of the firms. The data analyzed by using SPSS. Results confirmed the positive correlation between the dependent and the independent variables. Limitations of the study were shortage of time and studying of a single sector. In future, different other sectors can be studied to see the impact of research and development on their performance.

Capital Structure, Growth and Profitability: Evidence from Domestic Commercial Banks in Cambodia

THE INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND BUSINESS ADMINISTRATION ◽

10.18775/ijmsba.1849-5664-5419.2014.51.1004 ◽

2018 ◽

Vol 5 (1) ◽

pp. 31-38

Author(s):

Khun Sokang ◽

Nop Ratanak

Keyword(s):

Capital Structure ◽

Commercial Banks ◽

Positive Relationship ◽

Negative Impact ◽

Return On Assets ◽

Significance Level ◽

Return On Equity ◽

The Impact ◽

The Relationship ◽

Pls Method

This paper aims to examine the impact of capital structure and growth on the profitability of domestic commercial banks in Cambodia. The study uses a panel least squares (PLS) method using a sample of 10 domestic commercial banks in Cambodia over the period of 2005-2013 to examine the relationship between capital structure, growth, and profitability of commercial banks. The finding reveals that capital structure variables including debt to equity (DE), equity to loan (EL), and equity to deposit (ED) have a significantly negative impact on return on assets (ROA) and return on equity (ROE) with 1% significance level. Moreover, the growth variables including growth in assets (GA) and growth in equity (GE) have shown a positive relationship with ROA and ROE. A significant relationship exists only between GE and ROE at 1% significance level.

The impact of corporate governance on Turkish banking sector during economic crisis: The test of instrumental stakeholder theory

Corporate Ownership and Control ◽

10.22495/cocv8i3p3 ◽

2011 ◽

Vol 8 (3) ◽

pp. 28-41

Author(s):

Suleyman Gokhan Gunay ◽

Mustafa Heves

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Economic Crisis ◽

Stakeholder Theory ◽

Banking Sector ◽

Return On Equity ◽

Average Return ◽

Governance Model ◽

The Impact ◽

The aim of this paper is to show the relationship between corporate governance and bank financial performance during economic crisis. In other words, a stakeholder governance model is developed in order to test the instrumental stakeholder theory during economic crisis. It is found that the average return on equity for the group of banks that use stakeholder governance model is approximately 70% higher than the group of banks that use stockholder governance model in Turkey during the economic crisis period (2007-2009). These findings show the importance of stakeholder governance model during the economic crisis. In other words, it is found that banks immunized themselves against the effects of economic crisis in terms of their financial performance

CAPITAL STRUCTURE AND BANK PERFORMANCE OF ISLAMIC AND COMMERCIAL IN YEMEN

International Journal of Research -GRANTHAALAYAH ◽

10.29121/granthaalayah.v9.i12.2021.4411 ◽

2021 ◽

Vol 9 (12) ◽

pp. 39-49

Author(s):

Samer Ahmed Ali Assirri ◽

C.K. Hebbar

Keyword(s):

Capital Structure ◽

Banking Sector ◽

Positive Impact ◽

Bank Performance ◽

Short Term ◽

Return On Assets ◽

Return On Equity ◽

Independent Variables ◽

Total Debt ◽

This study aims to examine the impact of capital structure on bank performance. This research verified the existence of several relationships between capital structure as measured by LAR, EAR, and Total Debt ratio on bank’s performance as measured by ROA and ROE, EPS, and NPM. Using the panel data of bank from 2010 to 2019, In Islamic banks , the results of the present study revealed that the contributions of the capital structure to ROA were significant. This result was in line with the findings of the past studies. For instance, El-Chaarani and El-Abiad (2019) found that positive and significant impacts of short-term debt and total debt on the return on equity of the banking sector in Middle East region, a negative and significant impacts of short-term debt and total debt on the return on assets, and a positive impact of long-term debt on the return on assets ratio. In commercial banks sector the regression analysis revealed that the contributions of the three independent variables to the EPS were non-significant. Also, the contributions of the total debt and LAR to the independent variables ROE were significant. In contrast, the contribution of the EAR to the independent variable ROE was non-significant. Moreover, the contribution of the LAR to NPM was significant. Also, the contributions of the EAR and the total debt to NPM were non-significant. Furthermore, the contributions of the LAR and EAR to ROA were significant. In contrast, the contribution of the total debt to ROA was non-significant. In general, the contributions of the LAR and EAR to ROA were significant.

Sustainability reporting and firm’s performance

International Journal of Productivity and Performance Management ◽

10.1108/ijppm-10-2018-0371 ◽

2019 ◽

Vol 69 (3) ◽

pp. 431-445

Author(s):

Amina Buallay

Keyword(s):

Banking Sector ◽

Manufacturing Sector ◽

Market Performance ◽

Sustainability Reporting ◽

Return On Assets ◽

Content Type ◽

Return On Equity ◽

Pooled Data ◽

Independent Variable ◽

Purpose The purpose of this paper is to provide a comparison between manufacturing and banking sectors with regards to the level of sustainability reporting (environmental, social and governance (ESG)) and its impact on operational, financial and market performance. Design/methodology/approach The research is quantitative, based on pooled data analysis of 932 manufactures and 530 banks listed on 80 countries for ten years from 2008 to 2017 ending up with 11,705 observations. A multivariate model is used to investigate the impact of sustainability reporting (ESG) on a firm’s performance. The theoretical model is built on agency, legitimacy, resources and stakeholders’ theories. The practical model is built on independent variable (ESG) and the dependent variables (return on assets, return on equity and Tobin’s Q). Findings The findings deduced from the empirical results on one hand demonstrated that ESG positively affect the operational, financial and market performance in the manufacturing sector. However, on the other hand, the ESG negatively affect the operational, financial and market performance in the banking sector. Originality/value This research makes a contribution to the scarce literature and compares the level of sustainability reporting and its impact on performance in both the manufacturing and banking sector which are two of the major and important sectors in the global financial markets.

The Impact of Capital Adequacy Ratio (CAR) on Islamic Banks’ Performance in Selected MENA Countries

International Journal of Business Ethics and Governance ◽

10.51325/ijbeg.v4i2.70 ◽

2021 ◽

pp. 116-133

Author(s):

ADEL Z. A. ALNAJJAR ◽

Anwar Hasan Abdullah Othman

Keyword(s):

United Arab Emirates ◽

Commercial Banks ◽

Banking Sector ◽

Capital Adequacy ◽

Islamic Banks ◽

Return On Assets ◽

Return On Equity ◽

Mena Countries ◽

Capital Adequacy Ratio ◽

A strong capital adequacy ratio is crucial to a financial institution's success and helps it to survive any potential financial crisis. From Q1 2017 to Q4 2019, the influence of the Capital Adequacy Ratio (CAR) on the performance of Commercial Islamic Banks in MENA nations (Qatar, Oman, Bahrain, Kuwait, United Arab Emirates, Saudi Arabia, and Jordan) is examined. The performance measures utilized in this study are Return on Assets (ROA) and Return on Equity (ROE). The study's sample frame comprises all Islamic commercial banks in the designated MENA nations, with a sample size of 18 Islamic commercial banks. Panel data, fixed and random models, are applied in this study since there are multiple entities and time series. The findings of the study showed that the selected Islamic banks are committed to Capital Adequacy Ratio (CAR) which is defined under Basel III. This is considered the largest percentage regulated by the Basel Committee. The study also found that there is a statistically negative significant influence of CAR on both performance indicators ROE and ROA in the commercial Islamic banks in the selected MENA countries. The results of the study can be useful to a policymaker or decision-makers in the Islamic Banks industry. First, the research could be a reference to financial regulators such as central banks which may use the findings to provide regulation on optimal capital levels for local banks in terms of regulations, deregulations, and financial disruption. Next, the practice implications in the Islamic banking sector will provide them with insight as to how a bank’s capital influences its earnings. Hence, management can work towards attaining an optimal structure that maximizes their performance as well as identifying “best” and “worst” practices associated with capitalization levels.

The Impact of Capital on Bank Profitability: Case of Tunisia

Journal of Economics Management and Trade ◽

10.9734/jemt/2021/v27i130316 ◽

2021 ◽

pp. 7-20

Author(s):

Mohamed Aymen Ben Moussa ◽

Hédi Trabelsi ◽

Adel Boubaker

Keyword(s):

Capital Adequacy ◽

Bank Capital ◽

Return On Assets ◽

Bank Profitability ◽

Return On Equity ◽

Net Interest Margin ◽

Capital Adequacy Ratio ◽

The Impact ◽

The Relationship ◽

Interest Margin

The capital adequacy ratio measures the ability of a financial institutions to meet its liabilities by comparing its capital with assets. This article studied the relationship between bank capital and bank profitability measured by (Return on assets; return on equity; net interest margin). We used a method of static panel for a sample of 11 banks in Tunisia between (2000…2018). We found that bank capital has a significant impact on ROA. But capital has a non significant effect on bank return on equity and not significant impact on bank net interest margin.

Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector

Management of Environmental Quality An International Journal ◽

10.1108/meq-12-2017-0149 ◽

2019 ◽

Vol 30 (1) ◽

pp. 98-115 ◽

Cited By ~ 25

Author(s):

Amina Buallay

Keyword(s):

Banking Sector ◽

Positive Impact ◽

Sustainability Reporting ◽

Tobin’S Q ◽

Return On Assets ◽

Tobin's Q ◽

Financial Return ◽

Content Type ◽

Return On Equity ◽

Purpose Sustainability reporting has been widely adopted by firms worldwide given the need of stakeholders for more transparency on environmental, social and governance (ESG) issues. The purpose of this paper is to investigate the relationship between ESG and bank’s operational (Return on Assets), financial (Return on Equity) and market performance (Tobin’s Q). Design/methodology/approach This study examined 235 banks for ten years (2007-2016) to ends up with 2,350 observations. The independent variable is the ESG disclosure; the dependent variables are performance indicators (return on assets, return on equity and Tobin’s Q). Two type of control variables are utilized in this study: bank specific and macroeconomic. Findings The findings deduced from the empirical results demonstrate that there is significant positive impact of ESG on the performance. However, the relationship between ESG disclosures is vary if measured individually; the environmental disclosure found positively affect the ROA and TQ. Whereas, the corporate social responsibility disclosure is negatively affect the three models. However, the corporate governance disclosure found negatively affects the ROA, ROE and positively affects the Tobin’s Q. Originality/value The results of this study can be used to present a successful model for worldwide banks to concentrate on the role of ESG disclosure in performance.

The impact of internal control requirements on profitability of Saudi shareholding companies

International Journal of Commerce and Management ◽

10.1108/ijcoma-04-2013-0033 ◽

2015 ◽

Vol 25 (2) ◽

pp. 196-217 ◽

Cited By ~ 3

Author(s):

Ali A. Al-Thuneibat ◽

Awad S. Al-Rehaily ◽

Yousef A. Basodan

Keyword(s):

Internal Control ◽

Well Being ◽

Return On Assets ◽

Content Type ◽

Return On Equity ◽

Information And Communication ◽

And Performance ◽

Using Data ◽

The Impact ◽

Purpose – This paper aims to investigate the compliance of Saudi shareholding companies with the requirements of internal control as set by the Saudi standard on internal control and its impact on the profitability of these companies. Design/methodology/approach – A questionnaire was used to collect data about the compliance with internal control requirements, and four measures of profitability including earnings per share (EPS), return on assets (ROA), return on equity (ROE) and profit margin (PM) for profitability were calculated using data from the financial statements of these companies. Then, Multiple Regression and t-test were used to analyze the data and test the hypotheses. Findings – The results of the study revealed that the degree of compliance with all components of internal control is very high. It also appears from the analysis that the effect of internal control and its components on ROA and ROE is significant and positive, while the effect on EPS and PM is positive but statistically insignificant. Practical implications – Corporate managements should review the effectiveness of the implementation of internal control requirements, especially those related to control environment, information and communication and monitoring. Social implications – The findings of the study shed light on the relevance of internal control systems of the Saudi shareholding companies in improving the financial performance of the these companies, which is expected to help in safeguarding the interests of all interest groups and improve the society’s well-being. Originality/value – The paper provides new evidence about the relationship between internal control and profitability in the Saudi Arabian environment. The findings of the study add good contribution to the literature because they direct our attention to the expected effect of the environment on the relationship between internal control and performance. The results may suggest that there is a need to expand this study using other methodologies to delve into the depths and understand this phenomenon within its context.