The Determinants of Banking Stability: The Example of Tunisia

2021 ◽  
Vol 8 (1) ◽  
pp. 01-10
Author(s):  
Jamel Eddine Mkadmi ◽  
Najwa Baccari ◽  
Adel Ncib
Keyword(s):  
Gross Domestic Product ◽  
Earnings Management ◽  
Debt Ratio ◽  
Z Score ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Banking Stability ◽  
The Stability ◽  
Corporate Social

This paper try to study the factors of the stability of Tunisian banks from a sample made up of 7 Tunisian banks listed during the period 2005-2014. The important determinants used to explain the stability of the banks are: the z-score and the capitalization ratio. The results revealed, firstly, that the profitability variables such as: return on assets (ROA) has a positive and significant impact on the stability of banks and return on equity (ROE) has a negative and significant effect. Besides, bank-specific variables such as: the net interest margin (NIM), the non-interest income (NII), the age and the size of the bank affect positively and not significantly the banking stability. But the debt ratio (END) has a negative and significant impact on banking stability. Finally, gross domestic product (GDP) affects positively and not significantly on banking stability. This paper investigates the connection between earnings management and corporate social.

scholarly journals Indicators influencing performance and stability in GCC banking sector

2017 ◽  
Vol 15 ◽  
pp. 408-420 ◽  
Author(s):  
Majed Alharthi
Keyword(s):  
Banking Sector ◽  
Foreign Direct Investments ◽  
Z Score ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Vision 2030 ◽  
Generalised Method Of Moments ◽  
Using Data ◽  
Conventional Banks

The main objective of this study is to identify the factors that can impact on the profitability and stability of GCC banks, using data from the period 2005-2014, to achieve GCC Vision 2030. The profitability indicators are: return on assets (ROA), return on equity (ROE), and net interest margin (NIM). In terms of stability, this can be presented through z-score and capital ratio. The statistical regressions in this study are generalised least squares (GLS) and generalised method of moments (GMM). Using both statistical indicators (GLS and GMM) is highly limited in previous studies. The main results for profitability show that stable banks are typically more profitable than instable banks. Moreover, there is a significant and positive correlation between capital ratio and profits – larger banks obtained higher returns. To achieve GCC Vision 2030, GCC banks may benefit from concentrating on lending services. Furthermore, attracting foreign direct investments can enhance banks’ profits. In contrast, outflow remittances badly affect ROA and ROE. As for the findings of stability, z-score and capital ratio impacted each other significantly and positively. Additionally, larger banks were found to be more risky when compared to smaller banks, and lending services support stability with lower insolvency risks. Finally, ROA significantly and strongly affects both stability indicators (z-score and capital ratio). Using the foreign direct investment (FDI) as an independent variable is a contribution to the performance and stability studies in banking. The result indicates that more FDI leads to better profitability in banking sector. In addition, examining the effects of outflow remittances on performance and stability adds to the knowledge. The outflow remittances decreased ROA and ROE but improve NIM significantly. In general, Islamic banks could achieve more profits (with higher insolvency risks) than conventional banks, and are found to be well-capitalised compared to conventional banks

Kinerja Rasio Keuangan Perbankan Islam Dan Konvensional: Studi Komparatif

Liquidity ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 13-20
Author(s):  
Amrizal Amrizal
Keyword(s):  
Annual Report ◽  
Capital Adequacy ◽  
Average Increase ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Interest Margin

The article focuses to analyze finance ratio consist of Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM) Capital Adequacy Ratio (CAR) except Earnings before Interest Tax (EBIT). The research is conducted to three conventional banking (BNI 46, Mandiri and BRI) and three syariah banking (Bank Muamalat Indonesia, Bank Mega Syaria and Bank Syariah Mandiri) for annual report periods 2007 to 2011. The result shows, the average increase EBIT to conventional banking groups during period 2007 to 2011 are 1.91% while the average EBIT to syariah banking groups are 1.53%. The average of ROA to conventional banking groups are 3.01% while the average ROA to syariah banking groups are 1.99%. The average of ROE to conventional banking groups is 24.19% while the average of ROE to syariah banking groups is 33.31%. The average of NIM to conventional banking groups during period 2007 to 2011 are 7.08% while the average of NIM to syariah banking groups during period 2007 to 2011 are 8.14%. The average of CAR to conventional banking groups is 15.63%, while the average of CAR to syariah banking groups during the period are 12.19%.

scholarly journals Corporate Governance, Political Connections, and Bank Performance

2019 ◽  
Vol 7 (4) ◽  
pp. 62 ◽  
Author(s):  
Haris ◽  
Yao ◽  
Tariq ◽  
Javaid ◽  
Ain
Keyword(s):  
Corporate Governance ◽  
Profit Margin ◽  
Political Connections ◽  
Return On Assets ◽  
Board Size ◽  
Bank Profitability ◽  
Return On Equity ◽  
Net Interest Margin ◽  
The Impact ◽  
Interest Margin

This study investigates the impact of corporate governance characteristics and political connections of directors on the profitability of banks in Pakistan. The study uses the data of 26 domestic banks over the latest and large period of 2007–2016. Our findings firstly affirm that bank profitability is negatively affected by the presence of politically connected directors on the board, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin. Secondly, our findings also affirm the negative political influence on the sustainability of the banking industry, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin during the government transition of banks having politically connected directors sitting on their board. Our findings further report an inverted U-shaped relationship between board size and bank profitability, suggesting that a board size beyond 8–9 members decreases the profitability. The study further finds a positive impact of board composition, board independence, and director compensation on bank profitability, while also finding a negative impact of frequent board meetings, presence of foreign directors, and audit committee independence.

scholarly journals Probability Factors Affecting Income Smoothing in Banks in 2010−2016

2018 ◽  
Vol 9 (3) ◽  
pp. 219-225
Author(s):  
Kartika Dewi
Keyword(s):  
Stock Exchange ◽  
Income Smoothing ◽  
Operating Expense ◽  
Return On Assets ◽  
Return On Equity ◽  
Factors Affecting ◽  
Economic Decision ◽  
Expense Ratio ◽  
Probability Ratio ◽  
Net Interest Margin

The purpose of this research was to examine profitability factors in banking that affected income smoothing. Profit is the most important number for readers in making the economic decision. This research used probability factors that affected income smoothing in the bank. Probability ratio testing used Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), and Operating Expense Ratio (OER). The population was all banks listed in Indonesian Stock Exchange in 2010-2016. The sample was 203 data obtained through purposive judgment sampling. Using Logistic Binary Regression from SPSS version 20, Eckel Index was used to determine which companies smooth its income. The result shows that ROA, NIM, and OER are significant to income smoothing. However, ROE does not affect income smoothing significantly.

scholarly journals Fatores determinantes da rentabilidade bancária: Análise dos maiores bancos brasileiros no período de 2007 a 2017

e3 ◽  
2020 ◽  
Vol 5 (2) ◽  
pp. 003-016
Author(s):  
Welber Batista
Keyword(s):  
Least Squares ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Interest Margin

O objetivo deste estudo é analisar os fatores determinantes da rentabilidade do setor bancário brasileiro, medido por três indicadores: Rentabilidade dos Ativos (return on assets - ROA), Rentabilidade do Capital Próprio (return on equity - ROE) e Margem Líquida dos Juros (net interest margin - NIM). A metodologia explicativa das variáveis selecionadas consiste em um modelo econométrico que combina as caraterísticas específicas dos bancos, elementos setoriais e variáveis macroeconômicas, obtendo-se estimativas com recurso aos mínimos quadrados ordinários PLS (panel least squares-painel) com efeitos fixos. A amostra é constituída por dados semestrais de um painel dos dez maiores bancos do Brasil em ativos totais, no período compreendido entre 2007 a 2017. Os resultados indicam que a rentabilidade das instituições bancárias brasileiras depende da evolução das suas variáveis específicas, sendo entretanto grandemente influenciado pelos determinantes macroeconômicos, cuja significância estatística é recorrente. Contudo, a preponderância dos fatores explicativos para as proxies da rentabilidade (ROA, ROE e NIM) não foram uniforme. Os fatores que melhor explicam o indicador ROA são a qualidade dos ativos e a variável exógena do crescimento do produto interno bruto - PIB, enquanto que para o indicador ROE acrescem duas variáveis internas: alavancagem financeira e eficiência. Quando a medida da rentabilidade utilizada é o indicador NIM, as regressões evidenciam um nível explicativo global superior com as seguintes variáveis específicas: alavancagem financeira, qualidade do ativo, liquidez, custo do financiamento e estrutura do ativo, influênciando significativamente na rentabilidade. Destaca-se também a importância da concentração bancária, do crescimento do PIB e em menor grau da taxa de juro e inflação, como determinantes do NIM.

scholarly journals Does CSR Influence Firm Performance Indicators? Evidence from Chinese Pharmaceutical Enterprises

2019 ◽  
Vol 11 (20) ◽  
pp. 5656 ◽  
Author(s):  
Minghui Yang ◽  
Paulo Bento ◽  
Ahsan Akbar
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Financial Indicators ◽  
Social Dimensions ◽  
Return On Assets ◽  
Environmental Aspect ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Corporate Social ◽  
The Impact

This research is carried out in the backdrop of increasing product quality and environmental degradation scandals associated with Chinese Pharmaceuticals in recent years. We examined the data of 125 Chinese Pharmaceuticals between 2010–2016 to investigate the impact of overall corporate social responsibility (CSR) performance as well as the performance on five unique aspects of CSR such as shareholders, employees, customers and suppliers, environmental practices, and the society to gauge the impact of these individual dimensions on the firm’s financial performance. The Hexun rating system is used to gauge a firm’s CSR performance on various stakeholder dimensions as it is one of the widely accepted CSR measurement criteria in China. The firm performance is measured by Tobin’s Q, return on assets (ROA), return on equity (ROE), and earnings per share (EPS) ratios. The outcome of the panel-based regression models reveals that the overall CSR score has a positive and significant influence on a firm’s financial indicators. Moreover, although all the CSR dimensions relate positively to firm performance, the environmental aspect of CSR has the most profound impact on firm performance followed by customers and suppliers, and employees. However, the shareholders and social dimensions have a relatively lesser influence on firm performance. These results imply that Chinese Pharmaceuticals shall further optimize each aspect of CSR performance as it can not only create a favorable brand image for various stakeholders but also results in sustainable financial performance.

scholarly journals Corporate Social Responsibility and Crowdfunding: The Experience of the Colectual Platform in Empowering Economic and Sustainable Projects

2020 ◽  
Vol 12 (13) ◽  
pp. 5251 ◽  
Author(s):  
Jesús Mauricio Flórez-Parra ◽  
Gracia Rubio Martín ◽  
Carmen Rapallo Serrano
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Risk ◽  
Sustainable Business ◽  
Return On Assets ◽  
Financial Barriers ◽  
Return On Equity ◽  
Financial Characteristics ◽  
Corporate Social ◽  
The Cost

In recent years, sustainable crowdfunding has been one of the key elements in the search for new sources of financing. This has involved eliminating financial barriers and intermediaries, bringing entrepreneurs’ projects closer to fund providers, and thus instigating changes in traditional investment and profitability parameters. Among these indicators, the sustainable business return and its relationship with Corporate Social Responsibility (CSR) could be a relevant factor to improve the cost of funding, to explain the return on assets (ROA), and, consequently, impacting on the return on equity (ROE). In this context, this paper takes as a reference 101 projects that are part of Colectual’s lending. We analyze factors such as sustainability—the application of CSR across a social responsibility index; the financial characteristics of the company—liquidity, leverage, and solvency; and the characteristics of the loans related to crowdfunding—amount, maturity, and charge rate of the loan. Our study provides empirical evidence that, besides financial characteristics, the commitment to CSR can improve collective lending and the management of resources, as well as enhance the capital wealth of companies, by improving shareholder profitability or ROE. Investors consider not only financial risk but also sustainability factors.

scholarly journals Leverage, capital and profitability of the banks: Evidence from Saudi Arabia

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1363-1370 ◽  
Author(s):  
Abdul Rahman Shaik ◽  
Raj Bahadur Sharma
Keyword(s):  
Control Variable ◽  
Negative Relationship ◽  
Positive Association ◽  
Debt Ratio ◽  
Return On Assets ◽  
Return On Equity ◽  
Total Debt ◽  
Tier 1 ◽  
Equity Ratio ◽  
Tier 1 Capital

The study examines the effect of leverage and capital on the profitability of selected Saudi Arabian Banks during the period 2014 and 2019. The banks have been selected based upon their size in terms of total assets. The profitability elements, such as Earnings per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) are the dependent variables; Total Debt Ratio (TDR), Tier 1 Capital Ratio (Tier 1 CAP), and Debt to Equity Ratio (DE) are the independent variables, and firm size is the control variable. The study estimates a pooled regression analysis to analyze the effect of these variables. The results of the study show that there is a positive relationship between the different profitability variables and Debt to Equity Ratio. The Total Debt Ratio is having positive association with ROA and ROE, and has an insignificant negative relationship with the EPS, and the Tier 1 capital ratio is having positive association with ROA and ROE, and has an insignificant relationship with the EPS.

scholarly journals Pengungkapan Corporate Social Responsibility dan Kinerja Keuangan Perusahaan Perbankan

2021 ◽  
Vol 31 (7) ◽  
pp. 1655
Author(s):  
Ni Made Widyasari ◽  
Ketut Yadnyana
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Panel Data Regression ◽  
Analysis Technique ◽  
Data Regression ◽  
Csr Disclosure ◽  
Corporate Social

A company Development can made the ekspoitation of natural resources to be higher, so it is important for the companies to carry out CSR activities. This study aims to determine the effect of corporate social responsibility disclosure on financial performance in Bank sector as proxied by eeturn on assets (ROA) and return on equity (ROE). The sample was obtained using purposive sampling method and the number of research samples was 19 companies with a total of 95 observations. The data analysis technique in this study was panel data regression analysis. The results show that corporate social responsibility (CSR) disclosure has a positive and significant effect on financial performance in bank sector as proxied by return on assets (ROA) and return on equity (ROE). The implication of this research can contribute to the empirical study of stakeholder theory and equity theory. The implication of this research is that it can be taken into consideration in decision making by stakeholders and company management. Keywords: CSR Disclosure; ROA; ROE.

scholarly journals Relationship between Company Financial Performance, Characteristic and Environmental Disclosure of ASX Listed Companies

2018 ◽  
Vol 73 ◽  
pp. 10024 ◽  
Author(s):  
Wahyuningrum Indah Fajarini Sri ◽  
Budihardjo Mochamad Arief
Keyword(s):  
Financial Performance ◽  
Listed Companies ◽  
The Other ◽  
Environmental Disclosure ◽  
Return On Assets ◽  
Return On Equity ◽  
Corporate Social Disclosure ◽  
Earnings Per Share ◽  
Sample Data ◽  
Corporate Social

The study expects to find positive relations between company financial performance, company characteristics, auditing firm, and the extent of company environmental disclosure. The sample data used in this study is 200 largest Australian listed companies (ASX) in 2014. In order to explain the corporate social responsibility practices in Australian companies, this study used stakeholder and legitimacy theories. The measurement of company environmental disclosure in this study involves nine indicators of environmental disclosure index based on Environmental Social and Governance (ESG). More specifically, the statistical analysis indicates that earnings per share, return on equity, type of company, size of company, age of company, and auditing firm positively influence the company environmental disclosure. On the other hand, the results showed that return on assets has no relationship with company environmental disclosure. Overall, this study has added some information about corporate social disclosure studies focused on environmental disclosure of largest Australian companies.

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