A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin

The aim of this study is to determine the pattern of bank characteristic (internal) and macroeconomic (external) determinants on the profitability of Malaysian banks. Internal determinants include bank size, capital adequacy ratio, liquidity, asset quality, and expenses management; while the externa...

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Main Author: Syed Mohsin, Sharifah Mastura
Format: Student Project
Language:English
Published: 2015
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/30774/
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author Syed Mohsin, Sharifah Mastura
author_facet Syed Mohsin, Sharifah Mastura
author_sort Syed Mohsin, Sharifah Mastura
building UiTM Institutional Repository
collection Online Access
description The aim of this study is to determine the pattern of bank characteristic (internal) and macroeconomic (external) determinants on the profitability of Malaysian banks. Internal determinants include bank size, capital adequacy ratio, liquidity, asset quality, and expenses management; while the external determinants comprise of gross domestic product (GDP), inflation, money supply, and competition. Secondary data was collected mostly from Bank Negara Malaysia (BNM) Catalogue which consists of both conventional and Islamic banks together in a single data set from year 2007 to 2013. The financial ratios technique was applied to calculate on these variables and Ordinary Least Square (OLS) method was used to run the regression model. The estimation result shows that liquidity is the only variable that is significant but negatively influences the banks’ profitability. For future studies, it is recommended that more sample size and determinant factors can be included in determining the factor on bank profitability.
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spelling uitm-307742020-07-15T05:03:09Z https://ir.uitm.edu.my/id/eprint/30774/ A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin Syed Mohsin, Sharifah Mastura Macroeconomics Banking Financial management. Business finance. Corporation finance The aim of this study is to determine the pattern of bank characteristic (internal) and macroeconomic (external) determinants on the profitability of Malaysian banks. Internal determinants include bank size, capital adequacy ratio, liquidity, asset quality, and expenses management; while the external determinants comprise of gross domestic product (GDP), inflation, money supply, and competition. Secondary data was collected mostly from Bank Negara Malaysia (BNM) Catalogue which consists of both conventional and Islamic banks together in a single data set from year 2007 to 2013. The financial ratios technique was applied to calculate on these variables and Ordinary Least Square (OLS) method was used to run the regression model. The estimation result shows that liquidity is the only variable that is significant but negatively influences the banks’ profitability. For future studies, it is recommended that more sample size and determinant factors can be included in determining the factor on bank profitability. 2015 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/30774/1/30774.pdf Syed Mohsin, Sharifah Mastura (2015) A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin. (2015) [Student Project] <http://terminalib.uitm.edu.my/30774.pdf> (Unpublished)
spellingShingle Macroeconomics
Banking
Financial management. Business finance. Corporation finance
Syed Mohsin, Sharifah Mastura
A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin
title A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin
title_full A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin
title_fullStr A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin
title_full_unstemmed A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin
title_short A study on the determinants of Malaysian banks’ profitability / Sharifah Mastura Syed Mohsin
title_sort study on the determinants of malaysian banks’ profitability / sharifah mastura syed mohsin
topic Macroeconomics
Banking
Financial management. Business finance. Corporation finance
url https://ir.uitm.edu.my/id/eprint/30774/