Bank profitability during and before the financial crisis: Domestic versus foreign banks

Bouzgarrou, Houssam; Jouida, Sameh; Louhichi, Waël

doi:10.1016/j.ribaf.2017.05.011

Cited by 60 publications

(49 citation statements)

References 27 publications

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“…The results of testing Hypothesis 2 (H2) indicate that bank size has a positive but not significant effect on bank profitability. The results of this study are in line with (Petria et al, 2015), (Martins et al, 2019), (Bouzgarrou et al, 2017), (Vernanda & Widyarti, 2016) found that size did not significantly influence bank profitability. However, different research results obtained by Kosmidou & Zopounidis (2008) and Menicucci & Paolucci (2016) found that bank size is one of the determinants of bank profitability.…”

Section: Bank Size Direct Effects On Bank Profitabilitysupporting

confidence: 89%

“…This is in line with research (Adelopo, Lloydking, & Tauringana, 2018), which found that bank size had a positive effect on ROA. Other studies from (Petria et al, 2015), (Martins et al, 2019), (Bouzgarrou et al, 2017), (Vernanda & Widyarti, 2016) found that size did not significantly influence bank profitability.…”

Section: Effect Of Bank Size On Return On Assets (Roa)mentioning

confidence: 88%

“…Further research (Bouzgarrou, Jouida, & Louhichi, 2017) examined 170 commercial banks in France for the period 2000-2012, finding that the dummy variables of foreign banks had a significant effect on bank profitability, variable liquidity, bank capital and macroeconomic variables such as economic growth and Fiscal freedom has a significant effect on bank profitability. The variable size of the bank does not have a significant effect on bank profitability.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Role of Efficiency Mediation in the Effect of Banks Size on Bank Profitability in Indonesia

Ruslan

Pahlevi

Alam

et al. 2019

Hasanuddin Econ. Bus. Rev.

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The purpose of this study was to analyze the mediating role of bank efficiency in the effect of bank size on bank profitability. The research sample is 25 banks that have a minimum core capital of Rp. 5,000,000,000,000 and publish financial statements in full during 2010-2017. The data analysis technique in this study is path analysis (path analysis) with the help of AMOS software (Analysis of Moment Structure). The results of the study found that; 1) bank size has a positive and significant effect on bank efficiency; 2) bank size has a positive and not significant effect on bank profitability; 3) bank efficiency has a positive and significant effect on bank profitability. 4) bank efficiency is able to mediate the effect of bank size on bank profitability.

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Section: Bank Size Direct Effects On Bank Profitabilitysupporting

confidence: 89%

Section: Effect Of Bank Size On Return On Assets (Roa)mentioning

confidence: 88%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Role of Efficiency Mediation in the Effect of Banks Size on Bank Profitability in Indonesia

Ruslan

Pahlevi

Alam

et al. 2019

Hasanuddin Econ. Bus. Rev.

View full text Add to dashboard Cite

show abstract

“…The results of his analysis showed that Islamic banks' profitability is determined positively by assets size, equity to total assets, liquidity risk, and negatively by capital adequacy ratio, innovation and global financial crisis. Bouzgarrou et al (2018) examined the profitability of both domestic and foreign banks before and during the financial crisis of 2007-2008. Their sample includes 170 commercial banks in the French market over the period spanning 2000 to 2012.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of the Global Financial Crisis on the Profitability of Islamic Banks in UAE

Ibrahim

2019

IJFR

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This paper empirically analyzes the profitability of the four Islamic banks operating in the UAE during the financial period between 2004 and 2009 using three profitability indicators, return on total income, return on assets and return on equity. The researcher uses a variety of techniques, equality of means, coefficient of variation and Anova analysis to assess the effect of the financial crisis on the performance of the four specified banks. The findings show that although the financial crisis began in the 3rd quarter of 2007, its impact on the profitability of Islamic banks was most profound in 2008 and 2009 where there was a notable decline in all analyzed financial indicators. Moreover, the three indicators held a higher variability rate during the crisis years spanning 2008 to 2009 in stark contrast with the pre-crisis rates of the period spanning 2004 to 2007. Anova analysis across the four banks show significant differences between the mean of most indicators, suggesting varying performance under the adverse conditions present during the recession.

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“…High liquidity ratios show a business financial power (Chandra, 2001), but the very high liquidity ratio also indicates the problems of bank mismanagement (Matarazzo, 2003). Therefore, the appropriate balance which avoids short-term liquidity pressures requires the removal of excessive or inadequate liquidity appropriate to the desired operating level of the bank (Bourzgarru et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

High Liquidity or Low Liquidity Is Better to Achieve High Profitability? Evidence from Banks in Central and Southern Europa

Nure

2019

IFB

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This work investigated the impact of the bank's liquidity management in the profitability of the bank, considering the fact that different research has found that their relationship is negative in some other positive research. The relationship between these two components depends on the variables used to measure them. In this study are included commercial banks operating in southern and central Europe for the period 2009-2017. Following the study, it was possible to determine which is the optimal level of liquidity that gives us the highest level of profitability, and the results showed that not necessarily the high-level liquidity banks can achieve high-level profitability. The data had non-normal distribution, so as a technique of analysis non-parametric tests were used.

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Bank profitability during and before the financial crisis: Domestic versus foreign banks

Cited by 60 publications

References 27 publications

The Role of Efficiency Mediation in the Effect of Banks Size on Bank Profitability in Indonesia

The Role of Efficiency Mediation in the Effect of Banks Size on Bank Profitability in Indonesia

The Effect of the Global Financial Crisis on the Profitability of Islamic Banks in UAE

High Liquidity or Low Liquidity Is Better to Achieve High Profitability? Evidence from Banks in Central and Southern Europa

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