The Moderating Role of Profitability: a Conceptual Study

Authors: , ,

Abstract: This study investigates the moderating impact of profitability on relationships of the owner’s behavior and implementation of regulations, risk-taking. Many of the previous studies mentioned the owner’s attitude towards risk-taking and implementation capital regulations but ignored the role of profitability on these relationships. Especially, in developing countries where financial performance is below standard, the owner’s behavior toward risk-taking and policy implementation affected by the profitability. This study concluded that profitability/financial performance moderate the relationships of the owner’s behavior and risk-taking, implementation of regulations. Profits associated with investment have the characteristics to change the owner’s behavior regarding regulations implementation and risk-taking activities of financial institutions.

Financial Engineering, E-ISSN: 2945-1140, Volume 3, 2025, Art. #6

PDF
DOI
XML
Cite
×
Citation Tools
WSEAS AMA
Muhammad Sajjad Hussain, Abdelnaser Omran, Abdulkarim Omran Gebril, "The Moderating Role of Profitability: a Conceptual Study," WSEAS Transactions on Financial Engineering, vol. 3, pp. 51-57, 2025, DOI:10.37394/232032.2025.3.6
Muhammad Sajjad Hussain, Abdelnaser Omran, Abdulkarim Omran Gebril. The Moderating Role of Profitability: a Conceptual Study. Financial Engineering. 2025;3:51-57. 10.37394/232032.2025.3.6
Copy to Clipboard
Citation copied to Clipboard

Certification

---