This study aims at testing the effect of the components of the PRAT model and the basic model developed by Robert Higgins on the rate of sustainable growth by applying them to a sample of Saudi banks during the period of 2010–2019. Regarding the PRAT model, as Higgins explained, it is that detailed model measuring the sustainable growth rate by profit margin (P), retention rate (R), asset turnover (A), and leverage (T). To test the relation between the study variables, multiple regression analyses were conducted using the Pooled Model (PEM), the Fixed Effect Model (FEM), and the Random Effect Model (REM). The results showed that all the variables of the PRAT model affect sustainable growth (profitability margin, retained earnings, asset turnover, and financial leverage). Moreover, the application of the basic model of Higgins shows that the rate of return on equity and retained earnings affect sustainable growth. When drawing a comparison among statistical measurement models and checking the validity of these models, the validity of the fixed effect model for measuring the relation between the variables of the PRAT model and Higgins basic model is seen.
This study aimed to find the best model to predict the market value of the Jordanian banks for the period from 2004 to 2013. Based on previous studies we have used investment, financing and dividend decisions in addition to profitability, size and growth to predict the market value which has been measured at market value of the shares to the book value, which is called by Tobin's Q.By using the simple regression analysis it was reached to a statistical significance effect for each investment decision, profitability, size and expected growth on market value, and it was found out the absence of an effect for each of financing and dividends decisions on market value. And by Using multiple linear regression test and stepwise regression method in order to find out the best models to predict market value, the profitability, investment decision and expected growth are considered the best variables to predict market value whereas it explain 45% of changes in market value.
This study aims to test the causal relationship between Saudi stock market index (TASI) and sectoral indices throughout the period from 2016–2020. The study data were extracted through the main index of the Saudi market and the indices of the available data of 19 sectors out of 21 sectors. The unit root test was used along with the Granger causality test, in addition to multiple regression tests in order to analyze the study hypotheses. The study shows that all index series were stationary at the zero level I (0), and the results also show that there were bidirectional and unidirectional causal relationships between TASI and sectoral indices, and that TASI effectively mirrors all the changes that occur in the Saudi stock market.
The purpose of this study is to determine whether the market index returns and sectoral indices returns in the Saudi stock market (TADAWUL) follow a random walk process as stated by the efficient market hypothesis for the years 2011-2020. The normal distribution test, runs test, variance ratio test, and Augmented Dickey-Fuller (ADF) were used to check the study hypotheses. At the weak-form level, the empirical findings reject the random walk hypothesis, indicating proving that not all historical data is completely reflected in stock prices. The study's conclusions are significant for Saudi stock market investors who are forming investment portfolios resemble to the market's portfolio.
Purpose: This current study investigates the impact of this new liquidity regulation on banks' profitability in Saudi Arabia. A sample of 12 Saudi banks covering the period 2015-2018 was used in the study. Design/Methodology/Approach: This study adopted several models of panel data, such as the pooled ordinary least square, the fixed effects model and the random effects model. Findings: The empirical results indicated that the new liquidity ratio had no impact on Saudi banks' profitability, as it was plausibly illustrated that, when the banks maintained their liquidity levels following application of the Liquidity Coverage Ratio, they would have lower funding costs and risk, hence increasing the banks' profitability. Originality/Value: This study contributes by investigating the effect of the implementation of the new liquidity standards on the profitability of Saudi Banks.
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