Factors affecting the profitability of Malaysian commercial banks
This study intends to investigate the impact of bank-specific characteristics and macroeconomic conditions on Malaysian commercial banks financial performance, during the period of 2003 to 2009. This study employs regression models that relate bank profitability ratios to various explanatory variabl...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Academic Journals
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/30836/1/article1380811107_Ong%20and%20Teh.pdf |
| _version_ | 1796971821000556544 |
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| author | Ong, Tze San Teh, Boon Heng |
| author_facet | Ong, Tze San Teh, Boon Heng |
| author_sort | Ong, Tze San |
| collection | UPM |
| description | This study intends to investigate the impact of bank-specific characteristics and macroeconomic conditions on Malaysian commercial banks financial performance, during the period of 2003 to 2009. This study employs regression models that relate bank profitability ratios to various explanatory variables. There are three ratios which represent profitability measures are return on assets (ROA), return on equity (ROE) and net non-interest margin (NIM). Seven variables are drawn from the conventional banking literature as proxies for bank-specific and macroeconomic factors. Results of this study indicated that ROA is the best profitability measures. All bank-specific determinants affect bank profitability significantly in the anticipated way. However, no evidence is found in support of the macroeconomic variables have an impact on profitability. |
| first_indexed | 2024-03-06T08:18:46Z |
| format | Article |
| id | upm.eprints-30836 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:18:46Z |
| publishDate | 2013 |
| publisher | Academic Journals |
| record_format | dspace |
| spelling | upm.eprints-308362017-11-16T03:54:53Z http://psasir.upm.edu.my/id/eprint/30836/ Factors affecting the profitability of Malaysian commercial banks Ong, Tze San Teh, Boon Heng This study intends to investigate the impact of bank-specific characteristics and macroeconomic conditions on Malaysian commercial banks financial performance, during the period of 2003 to 2009. This study employs regression models that relate bank profitability ratios to various explanatory variables. There are three ratios which represent profitability measures are return on assets (ROA), return on equity (ROE) and net non-interest margin (NIM). Seven variables are drawn from the conventional banking literature as proxies for bank-specific and macroeconomic factors. Results of this study indicated that ROA is the best profitability measures. All bank-specific determinants affect bank profitability significantly in the anticipated way. However, no evidence is found in support of the macroeconomic variables have an impact on profitability. Academic Journals 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30836/1/article1380811107_Ong%20and%20Teh.pdf Ong, Tze San and Teh, Boon Heng (2013) Factors affecting the profitability of Malaysian commercial banks. African Journal of Business Management, 7 (8). pp. 649-660. ISSN 1993-8233 http://www.academicjournals.org/article/article1380811107_Ong%20and%20Teh.pdf |
| spellingShingle | Ong, Tze San Teh, Boon Heng Factors affecting the profitability of Malaysian commercial banks |
| title | Factors affecting the profitability of Malaysian commercial banks |
| title_full | Factors affecting the profitability of Malaysian commercial banks |
| title_fullStr | Factors affecting the profitability of Malaysian commercial banks |
| title_full_unstemmed | Factors affecting the profitability of Malaysian commercial banks |
| title_short | Factors affecting the profitability of Malaysian commercial banks |
| title_sort | factors affecting the profitability of malaysian commercial banks |
| url | http://psasir.upm.edu.my/id/eprint/30836/1/article1380811107_Ong%20and%20Teh.pdf |
| work_keys_str_mv | AT ongtzesan factorsaffectingtheprofitabilityofmalaysiancommercialbanks AT tehboonheng factorsaffectingtheprofitabilityofmalaysiancommercialbanks |