The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks
This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measur...
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Format: | Article |
Language: | English |
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University Library System, University of Pittsburgh
2021-09-01
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Series: | Emerging Markets Journal |
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Online Access: | http://emaj.pitt.edu/ojs/index.php/emaj/article/view/221 |
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author | Ishaq Hacini Abir Boulenfad Khadra Dahou |
author_facet | Ishaq Hacini Abir Boulenfad Khadra Dahou |
author_sort | Ishaq Hacini |
collection | DOAJ |
description | This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks. |
first_indexed | 2024-12-13T20:29:59Z |
format | Article |
id | doaj.art-82c647e1cca14116a2234fec066fd101 |
institution | Directory Open Access Journal |
issn | 2158-8708 |
language | English |
last_indexed | 2024-12-13T20:29:59Z |
publishDate | 2021-09-01 |
publisher | University Library System, University of Pittsburgh |
record_format | Article |
series | Emerging Markets Journal |
spelling | doaj.art-82c647e1cca14116a2234fec066fd1012022-12-21T23:32:27ZengUniversity Library System, University of PittsburghEmerging Markets Journal2158-87082021-09-01111677510.5195/emaj.2021.221149The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian BanksIshaq Hacini0Abir Boulenfad1Khadra Dahou2University of MascaraUniversity of MascaraUniversity of MascaraThis paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks.http://emaj.pitt.edu/ojs/index.php/emaj/article/view/221liquidity riskliquidity managementfinancial performancebankssaudi arabia |
spellingShingle | Ishaq Hacini Abir Boulenfad Khadra Dahou The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks Emerging Markets Journal liquidity risk liquidity management financial performance banks saudi arabia |
title | The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks |
title_full | The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks |
title_fullStr | The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks |
title_full_unstemmed | The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks |
title_short | The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks |
title_sort | impact of liquidity risk management on the financial performance of saudi arabian banks |
topic | liquidity risk liquidity management financial performance banks saudi arabia |
url | http://emaj.pitt.edu/ojs/index.php/emaj/article/view/221 |
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