Determinants of bank profitability before, during, and after the financial crisis
PurposeThe purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before (1999-2006), during (2007-2009), and after (2010-2013) the financial crisis.Design/methodology/approachUsing the Economic Com...
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| Veröffentlicht in: | International Journal of Managerial Finance 2018-07, Vol.14 (4), p.378-398 |
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| container_title | International Journal of Managerial Finance |
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| creator | Adelopo, Ismail Lloydking, Robert Tauringana, Venancio |
| description | PurposeThe purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before (1999-2006), during (2007-2009), and after (2010-2013) the financial crisis.Design/methodology/approachUsing the Economic Community of West African States’ bank panel data from 1999 to 2013, the paper used fixed effect models. The panel model includes bank-specific determinants (size, cost management, and liquidity), industry level, and macroeconomic variables.FindingsPanel data analyses results show that there is a significant relationship between bank-specific determinants (size, cost management, and liquidity) and bank profitability (ROA) before, during, and after the financial crisis. However, the relationships between other bank-specific (capital strength, credit risk, and market power), macroeconomic (gross domestic product and inflation) determinants are sensitive to both periods of analysis (before, during, and after financial crisis) and bank profitability measure used (ROA or NIM).Originality/valueOverall, these results suggest that the financial crisis did not affect the relationships between some bank-specific determinants and bank profitability. |
| doi_str_mv | 10.1108/IJMF-07-2017-0148 |
| format | Article |
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The panel model includes bank-specific determinants (size, cost management, and liquidity), industry level, and macroeconomic variables.FindingsPanel data analyses results show that there is a significant relationship between bank-specific determinants (size, cost management, and liquidity) and bank profitability (ROA) before, during, and after the financial crisis. However, the relationships between other bank-specific (capital strength, credit risk, and market power), macroeconomic (gross domestic product and inflation) determinants are sensitive to both periods of analysis (before, during, and after financial crisis) and bank profitability measure used (ROA or NIM).Originality/valueOverall, these results suggest that the financial crisis did not affect the relationships between some bank-specific determinants and bank profitability.</description><identifier>ISSN: 1743-9132</identifier><identifier>EISSN: 1758-6569</identifier><identifier>DOI: 10.1108/IJMF-07-2017-0148</identifier><language>eng</language><publisher>Bradford: Emerald Group Publishing Limited</publisher><subject>Banking industry ; Banks ; Branch banking ; Commercial banks ; Consumer Price Index ; Economic crisis ; Economic development ; Equity ; Funding ; GDP ; Gross Domestic Product ; Hypotheses ; Liquid assets ; Loans ; Macroeconomics ; Operating costs ; Population ; Profitability ; Profits ; Return on assets ; Securities markets ; Short term ; Studies</subject><ispartof>International Journal of Managerial Finance, 2018-07, Vol.14 (4), p.378-398</ispartof><rights>Emerald Publishing Limited 2018</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c405t-aff5aaaf0078f94545deb3cdc13770d72957a3c997f7f58b0552321daacd32353</citedby><cites>FETCH-LOGICAL-c405t-aff5aaaf0078f94545deb3cdc13770d72957a3c997f7f58b0552321daacd32353</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>315,782,786,969,21702,27931,27932</link.rule.ids></links><search><creatorcontrib>Adelopo, Ismail</creatorcontrib><creatorcontrib>Lloydking, Robert</creatorcontrib><creatorcontrib>Tauringana, Venancio</creatorcontrib><title>Determinants of bank profitability before, during, and after the financial crisis</title><title>International Journal of Managerial Finance</title><description>PurposeThe purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before (1999-2006), during (2007-2009), and after (2010-2013) the financial crisis.Design/methodology/approachUsing the Economic Community of West African States’ bank panel data from 1999 to 2013, the paper used fixed effect models. The panel model includes bank-specific determinants (size, cost management, and liquidity), industry level, and macroeconomic variables.FindingsPanel data analyses results show that there is a significant relationship between bank-specific determinants (size, cost management, and liquidity) and bank profitability (ROA) before, during, and after the financial crisis. However, the relationships between other bank-specific (capital strength, credit risk, and market power), macroeconomic (gross domestic product and inflation) determinants are sensitive to both periods of analysis (before, during, and after financial crisis) and bank profitability measure used (ROA or NIM).Originality/valueOverall, these results suggest that the financial crisis did not affect the relationships between some bank-specific determinants and bank profitability.</description><subject>Banking industry</subject><subject>Banks</subject><subject>Branch banking</subject><subject>Commercial banks</subject><subject>Consumer Price Index</subject><subject>Economic crisis</subject><subject>Economic development</subject><subject>Equity</subject><subject>Funding</subject><subject>GDP</subject><subject>Gross Domestic Product</subject><subject>Hypotheses</subject><subject>Liquid assets</subject><subject>Loans</subject><subject>Macroeconomics</subject><subject>Operating costs</subject><subject>Population</subject><subject>Profitability</subject><subject>Profits</subject><subject>Return on assets</subject><subject>Securities markets</subject><subject>Short term</subject><subject>Studies</subject><issn>1743-9132</issn><issn>1758-6569</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2018</creationdate><recordtype>article</recordtype><sourceid>AFKRA</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><recordid>eNotkMtOwzAQRS0EEqXwAewssa1h_IqTJSoUiooQEqytiWODS5sUO13070lUVjOLOXOvDiHXHG45h_Ju-fK6YGCYAG4YcFWekAk3umSFLqrTcVeSVVyKc3KR8xpAyULBhLw_-N6nbWyx7TPtAq2x_aG71IXYYx03sT_Q2ocu-Rlt9im2XzOKbUMxDBjtvz0NI-sibqhLMcd8Sc4CbrK_-p9T8rl4_Jg_s9Xb03J-v2JOge4ZhqARMQCYMlRKK934WrrGcWkMNEZU2qB0VWWCCbqsQWshBW8QXSOF1HJKbo5_h7K_e597u-72qR0irYCikCCKgZgSfrxyqcs5-WB3KW4xHSwHO5qzozkLxo7m7GhO_gHOfGEz</recordid><startdate>20180709</startdate><enddate>20180709</enddate><creator>Adelopo, Ismail</creator><creator>Lloydking, Robert</creator><creator>Tauringana, Venancio</creator><general>Emerald Group Publishing Limited</general><scope>AAYXX</scope><scope>CITATION</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>AFKRA</scope><scope>ANIOZ</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>F~G</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>M1F</scope><scope>PQBIZ</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>Q9U</scope></search><sort><creationdate>20180709</creationdate><title>Determinants of bank profitability before, during, and after the financial crisis</title><author>Adelopo, Ismail ; Lloydking, Robert ; Tauringana, Venancio</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c405t-aff5aaaf0078f94545deb3cdc13770d72957a3c997f7f58b0552321daacd32353</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2018</creationdate><topic>Banking industry</topic><topic>Banks</topic><topic>Branch banking</topic><topic>Commercial banks</topic><topic>Consumer Price Index</topic><topic>Economic crisis</topic><topic>Economic development</topic><topic>Equity</topic><topic>Funding</topic><topic>GDP</topic><topic>Gross Domestic Product</topic><topic>Hypotheses</topic><topic>Liquid assets</topic><topic>Loans</topic><topic>Macroeconomics</topic><topic>Operating costs</topic><topic>Population</topic><topic>Profitability</topic><topic>Profits</topic><topic>Return on assets</topic><topic>Securities markets</topic><topic>Short term</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Adelopo, Ismail</creatorcontrib><creatorcontrib>Lloydking, Robert</creatorcontrib><creatorcontrib>Tauringana, Venancio</creatorcontrib><collection>CrossRef</collection><collection>Access via ABI/INFORM (ProQuest)</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ProQuest Central UK/Ireland</collection><collection>Accounting, Tax & Banking Collection</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>Banking Information Database</collection><collection>ProQuest One Business</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>ProQuest Central Basic</collection><jtitle>International Journal of Managerial Finance</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Adelopo, Ismail</au><au>Lloydking, Robert</au><au>Tauringana, Venancio</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Determinants of bank profitability before, during, and after the financial crisis</atitle><jtitle>International Journal of Managerial Finance</jtitle><date>2018-07-09</date><risdate>2018</risdate><volume>14</volume><issue>4</issue><spage>378</spage><epage>398</epage><pages>378-398</pages><issn>1743-9132</issn><eissn>1758-6569</eissn><abstract>PurposeThe purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before (1999-2006), during (2007-2009), and after (2010-2013) the financial crisis.Design/methodology/approachUsing the Economic Community of West African States’ bank panel data from 1999 to 2013, the paper used fixed effect models. The panel model includes bank-specific determinants (size, cost management, and liquidity), industry level, and macroeconomic variables.FindingsPanel data analyses results show that there is a significant relationship between bank-specific determinants (size, cost management, and liquidity) and bank profitability (ROA) before, during, and after the financial crisis. However, the relationships between other bank-specific (capital strength, credit risk, and market power), macroeconomic (gross domestic product and inflation) determinants are sensitive to both periods of analysis (before, during, and after financial crisis) and bank profitability measure used (ROA or NIM).Originality/valueOverall, these results suggest that the financial crisis did not affect the relationships between some bank-specific determinants and bank profitability.</abstract><cop>Bradford</cop><pub>Emerald Group Publishing Limited</pub><doi>10.1108/IJMF-07-2017-0148</doi><tpages>21</tpages><oa>free_for_read</oa></addata></record> |
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| subjects | Banking industry Banks Branch banking Commercial banks Consumer Price Index Economic crisis Economic development Equity Funding GDP Gross Domestic Product Hypotheses Liquid assets Loans Macroeconomics Operating costs Population Profitability Profits Return on assets Securities markets Short term Studies |
| title | Determinants of bank profitability before, during, and after the financial crisis |
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