WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 16, 2019
The Performance of Commercial Banking Industry: How it is Determined? An Evidence of the Listed Commercial Banks at ADX
Authors: ,
Abstract: The study objects for determining whether some selected accounting and marketing-based factors affecting the performance of listed commercial banks at Abu Dhabi Securities Exchange. The performance of commercial banks is measured through Return on Equity (ROE), while five independent variables were examined to determine whether each of them has a significant effect on the performance of commercial banks, including, capital adequacy, bank size, loan ratio, liquidity ratio, and Tobin’s Q. To achieve the objectives of the study, the required data, covering the period 2008-2016, was collected from eight out of 12 listed commercial banks at ADX. Four banks were excluded because no complete information along the period of the study regarding these banks four banks is available. Descriptive statistics are used in data analysis, whereas, simple and multiple linear regression were used in hypotheses testing underline 0.05 predetermined coefficient of significance. The study demonstrates that capital adequacy, bank size, and bank liquidity, each of which, has a significant effect on the performance of commercial banks, whereas, no significant effect had been found for loan ratio and Tobin’s Q.
Search Articles
Pages: 532-544
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #60