scholarly journals Effect of the Asset Quality on the Bank Profitability

2017 ◽  
Vol 9 (7) ◽  
pp. 60 ◽  
Author(s):  
Eyup Kadioglu ◽  
Niyazi Telceken ◽  
Nurcan Ocal
Keyword(s):  
Negative Relationship ◽  
Regression Method ◽  
Panel Regression ◽  
Data Set ◽  
Bank Profitability ◽  
Return On Equity ◽  
Quarterly Data ◽  
Significant Negative Relationship ◽  
Asset Quality

This study investigates whether non-performing loans effect the bank’s profitability in Turkey. The study applies a panel regression method to the quarterly data set including 1809 observation belongs to 55 Banks in Turkey during the period from 1st quarter of 2005 to 3rd quarter of 2016. It is found that there is a significant, negative relationship between non-performing loans and bank profitability which is measured by return on equity and return on asset. The higher non-performing loans, the lower asset quality, leads to the lower return on equity and return on asset, and the lower non-performing loans, the higher asset quality, leads to the higher return on equity and return on asset.

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.

A Multi-Country Analysis of Bank Capital and Earnings

1998 ◽  
Vol 01 (02) ◽  
pp. 123-155 ◽  
Author(s):  
James R. Barth ◽  
Daniel M. Gropper ◽  
John S. Jahera
Keyword(s):  
Negative Relationship ◽  
The United States ◽  
Service Firms ◽  
Bank Capital ◽  
Global Marketplace ◽  
Return On Equity ◽  
Significant Negative Relationship ◽  
Country Analysis ◽  
Financial Service Firms ◽  
The Relationship

The purpose of this paper is to analyze the relationship between bank capital and earnings. However, because banks and other financial service firms are increasingly operating in a global marketplace, it is important to examine bank relationships beyond the borders of a single country. This paper, therefore, analyzes the relationship between bank capital and earnings employing a sample of 231 banks in ten Pacific basin countries and the United States. More specifically, following the lead of earlier research, the study examines the relationship between the capital-to-asset ratio and return-on-equity. The empirical results indicate that, contrary to the case of U.S. banks during the 1980s, a significant negative relationship exists between these two variables for the sample banks in the eleven countries in 1994. This relationship generally holds when various control variables, including both firm- and country-specific variables, are included.

Testing the Green Bond Premium in COVID-19 Pandemia

2022 ◽  
pp. 173-193
Author(s):  
Neslihan Turguttopbaş
Keyword(s):  
Random Effects ◽  
Regression Method ◽  
Secondary Market ◽  
Panel Regression ◽  
Data Set ◽  
External Review ◽  
Fixed And Random Effects ◽  
Matching Procedure

The purpose of this chapter is testing the existence of the green bond premium in the secondary market by using a most update data set involving the market developments in the pandemia times. The variables such as rating, sector, amount of the issue, maturity, and external review are balanced by using a matching procedure of a green bond with conventional bond issued by the same issuer. The ask-bid spread differential is regressed by using a panel regression method under fixed and random effects. The results of the analysis revealed that there exists negative premium of 39 basis points, and the green bond premium is more profound for USD denominated twins than for Euro ones as there exist a negative premium of 59 basis points for USD-denominated green bonds whereas it is -26 basis points for Euro-denominated bonds.

CAMEL RATIO ON PROFITABILITY BANKING PERFORMANCE (MALAYSIA VERSUS INDONESIA)

2017 ◽  
Vol 3 (1) ◽  
pp. 30-39
Author(s):  
Maryam binti Badrul Munir ◽  
Ummi Salwa Ahmad Bustamam
Keyword(s):  
Capital Adequacy ◽  
Return On Assets ◽  
Comparative Performance ◽  
Bank Profitability ◽  
Return On Equity ◽  
Short Period ◽  
Equity Ratio ◽  
Asset Quality ◽  
Descriptive Method ◽  
Interest Expense

Purpose: This research analyzed about profitability banks performance based on the CAMEL (Capital Adequacy, Asset Quality, Management, Earnings and Liquidity) on the Bank's profitability. Capital adequacy measured by debt equity ratio (DER) and non-performing loans (NPL), asset quality measured by return on assets (ROA), management will be measured by cost per income, earnings measured by return on equity (ROE) and liquidity measured by interest expense and deposit.Methodology: The samples were 114 samples (from 10 bank in Malaysia and 9 bank in Indonesia) since 2010-2015. This analysis used descriptive method and multiple regression analysis, the result of this research indicated that banking profitability have a good performance based on CAMEL analysis.Findings: From the results of regression, the CAMEL analysis has a significant relationship to the bank profitabilityPractical Implications: The study demonstrated the use of CAMEL analysis to measure bank profitability. If bank performance declining through the CAMEL analysis so the Bank should make a decision to make a better performance changes of banking.Social Implications: This study was about the importance of camel analysis measuring the performance banking. CAMEL analysis detected the decrease in performance in any business sector.Originality/Value: This analysis adapted and adopted the study conducted by Sahut and Mili(2011), but this study focusedonly on the comparative performance between conventional and Islamic banking between Malaysia and Indonesia.Research Limitations/Implications: Comparison of CAMEL analysis focused on two countries between Malaysia and Indonesia (it also involves the comparative analysis of conventional and Islamic bank) to gain the profitabilityof banking, ROI with short period since 2010 until 2015

scholarly journals Determinants of Commercial Banks’ Profitability. Evidence from Hungary

2018 ◽  
Vol 66 (5) ◽  
pp. 1325-1335
Author(s):  
Isah Serwadda
Keyword(s):  
Commercial Banks ◽  
Regression Models ◽  
Capital Adequacy ◽  
Panel Regression ◽  
Internal Factors ◽  
Bank Profitability ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Asset Quality ◽  
Panel Regression Models

This paper aims to find out whether bank‑specific (internal) factors impact on the profitability of commercial banks in Hungary for 16 a year period ranging from 2000–2015. The study employs a sample of twenty‑six commercial banks with four hundred sixteen observations. The study employs return on average assets (ROAA) as a proxy for bank profitability, and it also considers bank‑specific (internal) factors as independent variables. These include asset quality (non‑performing loans), overhead costs, bank size, net interest margin, and liquidity risk plus capital adequacy ratio. The study uses panel regressions, descriptive statistics and correlation analysis for the investigations. The panel regression models are to estimate the impact of bank‑specific (internal) factors on bank profitability. The Hausman specification test was conducted on the panel regression models in order to identify the best and appropriate model for the study. The empirical findings reveal that non‑performing loans, overhead costs and liquidity had a significant negative impact on bank profitability as bank size had a significant positive impact on profitability. However, net interest margin and capital adequacy ratio had no impact on bank profitability. The study concludes that bank size and asset quality are bank‑specific factors that have the biggest impact on commercial banks’ profitability in Hungary for the period under investigation. The study recommends that commercial banks should endeavor to manage and reduce overhead costs to be able to earn more profits since overhead costs adversely affect bank profitability. More so, commercial banks’ managers should regularly monitor credit and liquidity risk indicators as well as pursuing diversification policies of income sources while upholding optimisation of operational costs.

scholarly journals Mass-mediated sex differences in climbing patterns support the gravity hypothesis of sexual size dimorphism

Web Ecology ◽  
2007 ◽  
Vol 7 (1) ◽  
pp. 106-112 ◽  
Author(s):  
J. Moya-Laraño ◽  
D. Vinković ◽  
C. M. Allard ◽  
M. W. Foellmer
Keyword(s):  
Sex Differences ◽  
Body Size ◽  
Sexual Size Dimorphism ◽  
Negative Relationship ◽  
Simulated Data ◽  
Statistical Efficiency ◽  
Data Set ◽  
Size Dimorphism ◽  
Significant Negative Relationship ◽  
Gravity Hypothesis

Abstract. The gravity hypothesis of sexual size dimorphism can explain the patterns of extreme sexual size dimorphism in spiders (males smaller than females) because small males climb faster and therefore may be better at reaching females that live in high habitats. Recently, the main prediction of a negative relationship between climbing speed and body size in spiders has been called into question. Here we induced males and females of the spider Leucauge venusta (Tetragnathidae) to run on vertical surfaces and found partial support for the gravity hypothesis. As predicted, males climb faster than females and we demonstrated that this effect is an indirect effect mediated by the negative relationship between body mass and climbing speed. We validate our results using simulated data showing that there is enough statistical efficiency in our data set to support our conclusions. We distinguished between direct and indirect effects (through mass) on sex differences in climbing speed by means of path analysis. Thus, we provide empirical evidence that by being smaller, males are able to climb faster than females. However, we found only a barely significant negative relationship between climbing speed and body size when only males were considered. Reasons for such results are discussed within the text.

scholarly journals Testing the Relationship between Free Cash Flow and Company Performance in Borsa Istanbul

2017 ◽  
Vol 10 (5) ◽  
pp. 148
Author(s):  
Eyup Kadioglu ◽  
Saim Kilic ◽  
Ender Aykut Yilmaz
Keyword(s):  
Cash Flow ◽  
Negative Relationship ◽  
Free Cash Flow ◽  
Company Performance ◽  
Data Set ◽  
Dividend Payments ◽  
Significant Negative Relationship ◽  
Free Cash Flow Hypothesis ◽  
The Relationship ◽  
Positive Effect

This study tests whether free cash flow affects the performance of firms in the context of the free cash flow hypothesis. The study applies a panel regression method to a data set consisting of 2,175 observations belonging to 370 companies listed in Borsa Istanbul during the period 2009-2015. A significant, negative relationship is found between free cash flow and firm performance measured by Tobin’s Q ratio. Greater free cash flow in the hands of managers leads to the lower performance and, conversely, less free cash flow in the hands of managers leads to higher performance. The results also confirm that leverage and dividend payments have a positive effect on performance. Thus, the results support the free cash flow hypothesis for Turkey.

scholarly journals The Determinants of Dividend Payout: Evidence from the Malaysian Property Market

2018 ◽  
Vol 11 (1) ◽  
pp. 27
Author(s):  
Ong Chun Lin ◽  
Hassanudin Mohd Thas Thaker ◽  
Ahmad Khaliq ◽  
Mohamed Asmy Mohd Thas Thaker
Keyword(s):  
Ownership Structure ◽  
Positive Relationship ◽  
Annual Report ◽  
Negative Relationship ◽  
Property Market ◽  
Dividend Payout ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Significant Negative Relationship ◽  
Property Companies

The paper aims to investigate the determinants of dividend payout among the Malaysian property companies. The sample size consists of 30 property listed companies on Bursa Malaysia. The data are generally obtained from the company’s annual report for the period of 2012 to 2016. The study employs multiple regression analysis to examine the influence of firms specific and macroeconomic variables on dividend payout. Result of the test shows that the dividend payout has a significant negative relationship with ownership structure and positive relationship on return on equity, quick ratio and GDP. The study instigates to enrich the literature on dividend determinants especially in the context of Malaysia.

scholarly journals Banks’ Profitability Under Democratic & Dictatorship Regime: Evidence from Pakistan

2019 ◽  
Vol 2 (1) ◽  
pp. 1-9
Author(s):  
Muhammad AsadUllah
Keyword(s):  
Interest Rate ◽  
Significant Relationship ◽  
Banking Sector ◽  
Negative Relationship ◽  
Banking System ◽  
Capital Adequacy ◽  
Panel Regression ◽  
Macroeconomic Variables ◽  
Independent Variables ◽  
Significant Negative Relationship

The aim of the study is to find out the determinants of profitability of Pakistan Banking System under democratic and dictatorship regime, i.e. 2006-2008 and 2009-2011 respectively. The authors were taken macroeconomic variables, i.e. GDP, Inflation and Interest Rate and bank-specific variables, i.e. Liquidity, size and capital adequacy as independent variables whereas Return on Asset as the dependent variable. By employing panel regression, the authors found that size has a significant negative relationship with profitability under both regimes. Interest and Liquidity had a positive significant relationship during democratic tenure. However, liquidity had significantly negative relationship between dictatorship duration. The findings will be helpful for the banking sector to make their policies accordingly.

Twitter and Olympics

2018 ◽  
Vol 19 (4) ◽  
pp. 370-383 ◽  
Author(s):  
Bo Li ◽  
Olan K.M. Scott ◽  
Stephen W. Dittmore
Keyword(s):  
Social Media ◽  
Olympic Games ◽  
Negative Relationship ◽  
Data Set ◽  
Content Type ◽  
Media Usage ◽  
Media Messages ◽  
Demand Theory ◽  
Significant Negative Relationship ◽  
Tv Broadcasting

PurposeThe purpose of this paper is to examine how Olympic audiences utilized Twitter to follow American National Governing Bodies (NGBs) during the 2016 Rio Olympic Games.Design/methodology/approachGuided by economic demand theory, the researchers sought to explore whether factors such as the content of social media messages, athlete’s performance, event presentation, scheduling, and TV broadcasting contribute to enhancing fans’ interests in following NGBs on Twitter during the Olympic Games. In total, 33 American NGB Twitter accounts formed the data set for this study. Each of NGBs’ Twitter data was collected every night at midnight from August 7 to 23, 2016. Data collected from each NGB account included number of followers, number of accounts followed, number of tweets, and number of “likes.”FindingsResults of this study revealed that team’s performance and the number of tweets had direct and positive relationships with increasing the number of NGB’s Twitter followers on each competition day. The number of “likes,” however, had a significant negative relationship with fans’ interests in following NGBs’ Twitter.Originality/valueThe results of the study are expected to help Governing Bodies in the Olympic sports have a better understanding of fans’ social media usage.

Sign in / Sign up

Export Citation Format

Share Document