Determinants of bank profitability in Tunisia: does corruption matter?

Bougatef, Khemaies

doi:10.1108/jmlc-10-2015-0044

Cited by 77 publications

(93 citation statements)

References 13 publications

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“…This is in agreement with AL-Omar and AL-Mutairi (2008) who concluded a significant relationship between AQ and ROA. Differently, Bougatef (2017) and Salike and Ao (2017) reported a significant positive impact whereas Yahya et al (2017) declared a negative impact on the bank's profitability. Naeem et al (2017) found a negative relationship between AQ and ROA.…”

Section: Bank-specific Determinants Of Indian Banks' Profitabilitymentioning

confidence: 83%

“…Garcia and Guerreiro (2016) and Saona (2016) have focused their research on internal and external factors affecting bank's profitability. Similarly, AL-Omar and AL-Mutairi (2008), Bougatef (2017), Dietrich and Wanzenried (2014), Francis (2013), Marijana, Poposki, and Pepur (2012), Menicucci and Paolucci (2016), Naeem, Baloch, and Khan (2017), Ongore and Kusa (2013), Pasiouras and Kosmidou (2007), and Petria, Capraru, and Ihnatov (2015) have investigated the determinants and factors affecting bank's profitability in different countries and from different regions. Singh and Sharma (2016), and Zampara, Giannopoulos, and Koufopoulos (2017) have examined bank-specific and macroeconomic factors affecting bank's profitability.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Singh & Sharma, 2016) that are specific to each bank and that, in many cases, are the direct result of managerial decisions. In majority of prior studies, variables such as capital adequacy, liquidity, deposits, asset quality, operating efficiency, and bank size are used as a function of internal determinants and micro or bankspecific factors of banking profitability (e.g., Bougatef, 2017;Chowdhury & Rasid, 2017;Garcia & Guerreiro, 2016;Menicucci & Paolucci, 2016;Naeem et al, 2017;Pathneja, 2016;Petria et al, 2015;Rani & Zergaw, 2017;Rashid & Jabeen, 2016;Rjoub et al, 2017;Salike & Ao, 2017;A. In majority of prior studies, variables such as capital adequacy, liquidity, deposits, asset quality, operating efficiency, and bank size are used as a function of internal determinants and micro or bankspecific factors of banking profitability (e.g., Bougatef, 2017;Chowdhury & Rasid, 2017;Garcia & Guerreiro, 2016;Menicucci & Paolucci, 2016;Naeem et al, 2017;Pathneja, 2016;Petria et al, 2015;Rani & Zergaw, 2017;Rashid & Jabeen, 2016;Rjoub et al, 2017;Salike & Ao, 2017;A.…”

Section: Literature Reviewmentioning

confidence: 99%

“…For example, some evidence drawn from these studies were focused on countries including Europe (Menicucci & Paolucci, 2016;Pasiouras & Kosmidou, 2007;Petria et al, 2015), Gulf Cooperation Council (GCC) countries (AL-Omar & AL-Mutairi, 2008;Chowdhury & Rasid, 2017), South Asian, East Asian, Middle East and African countries (Masood &Ashraf, 2012), Latin American, Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, Peru, andVenezuela (Jara-Bertin et al, 2014), Greek (Athanasoglou et al, 2008), Chile, Colombia, El Salvador, Honduras, Mexico and Paraguay (Tiberiu, 2015), Pakistan (Rashid & Jabeen, 2016), 12 Asian economies (Salike & Ao, 2017), Tunisia (Bougatef, 2017), Portugal (Garcia & Guerreiro, 2016), and Macedonia (Marijana et al, 2012). For example, some evidence drawn from these studies were focused on countries including Europe (Menicucci & Paolucci, 2016;Pasiouras & Kosmidou, 2007;Petria et al, 2015), Gulf Cooperation Council (GCC) countries (AL-Omar & AL-Mutairi, 2008;Chowdhury & Rasid, 2017), South Asian, East Asian, Middle East and African countries (Masood &Ashraf, 2012), Latin American, Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, Peru, andVenezuela (Jara-Bertin et al, 2014), Greek (Athanasoglou et al, 2008), Chile, Colombia, El Salvador, Honduras, Mexico and Paraguay (Tiberiu, 2015), Pakistan (Rashid & Jabeen, 2016), 12 Asian economies (Salike & Ao, 2017), Tunisia (Bougatef, 2017), Portugal (Garcia & Guerreiro, 2016), and Macedonia (Marijana et al, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

“…These determinants have basically revealed the policy of provisioning, liquidity levels, operational efficiency, bank size, capital adequacy, and expenses management (Menicucci & Paolucci, 2016). In majority of prior studies, variables such as capital adequacy, liquidity, deposits, asset quality, operating efficiency, and bank size are used as a function of internal determinants and micro or bankspecific factors of banking profitability (e.g., Bougatef, 2017;Chowdhury & Rasid, 2017;Garcia & Guerreiro, 2016;Menicucci & Paolucci, 2016;Naeem et al, 2017;Pathneja, 2016;Petria et al, 2015;Rani & Zergaw, 2017;Rashid & Jabeen, 2016;Rjoub et al, 2017;Salike & Ao, 2017;A. Singh & Sharma, 2016;Tiberiu, 2015;Zampara et al, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

See 4 more Smart Citations

The determinants of profitability of Indian commercial banks: A panel data approach

et al. 2018

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The current study examines the determinants of profitability of Indian commercial banks. The analysis is conducted over a period of 10 years in which the Indian banking sector has gone under different changes such as demonetization and issues related to banking sector sustainability and banking sector frauds. The analysis is based on balanced panel data over a period ranging from 2008 to 2017 for 69 commercial Indian banks. Profitability of Indian banks is measured by two proxies, namely, return on assets (ROA) and return on equity (ROE), whereas bank size, assets quality, capital adequacy, liquidity, operating efficiency, deposits, leverage, assets management, and the number of branches are used as bank‐specific factors. Further, a set of macroeconomic determinants such as gross domestic product, inflation rate, interest rate, exchange rate, financial crisis, and demonetization are used as independent variables. Stationary test along with pooled, fixed, random effect models and panel correction standard error are used in this study. The results revealed that bank size, the number of branches, assets management ratio, operational efficiency, and leverage ratio are the most important bank‐specific determinants that affect the profitability of Indian commercial banks as measured by ROA. Furthermore, among the bank‐specific determinants, the results revealed that bank size, assets management ratio, assets quality ratio, and liquidity ratio are found to have a significant positive impact on ROE. With regard to the macroeconomic determinants, the results revealed that the inflation rate, exchange rate, the interest rate, and demonization are found to have a significant impact on ROA. However, in the case of ROE, the results show that all macroeconomic determinants except demonization have a significant impact on the bank's profitability as measured by ROE.

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Section: Bank-specific Determinants Of Indian Banks' Profitabilitymentioning

confidence: 83%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

The determinants of profitability of Indian commercial banks: A panel data approach

et al. 2018

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Corporate governance, social responsibility and sustainability commitments by banks: Impacts on credit risk and performance

Ngamvilaikorn,

Lhaopadchan,

Treepongkaruna

2024

Corp Soc Responsibility Env

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With the increasing pressures to commit to social and environmental issues, banks align with stakeholders' expectations via corporate social responsibility (CSR), and sustainable development goals (SDGs) initiatives. Understanding how these initiatives affect credit risk and performance of banks is crucial for the economy. Relying on the dynamic generalized method of moments and data on Thai listed commercial banks from 2015 to 2020, we find commitments to good governance, CSR and SDGs largely have an opposite effect on bank credit risk and performance. Consistent with stewardship or resource dependency hypothesis, together with stakeholder and good management hypothesis, banks with more female directors, higher levels of anti‐corruption and SDGs commitments are associated with a reduction in credit risk. However, consistent with queen bee hypothesis and agency and trade‐off hypothesis, banks with larger board size, more female directors and higher levels of CSR and SDGs commitments underperform. This apparent contradiction between negative impacts on bank performance and positive impacts on credit risk can be reconciled by understanding the trade‐offs involved, the long‐term focus of sustainability initiatives, leading to a decline in short‐term performance but enhancing their resilience to adverse events, ultimately reducing credit risk. Our findings enable stakeholders to make informed decisions, improve sustainable business practices, and contribute to the long‐term success of banks and the broader society.

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Is the relationship between corruption, government stability and non‐performing loans non‐linear? A threshold analysis for the MENA region

2020

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The purpose of this article is to check whether there is a threshold effect in the government stability, corruption and non‐performing loans (NPLs) relationship in the MENA region. To this end, we used a sample of MENA banks over the period 2004–2017. Empirical results of the panel smooth transition regression model indicate that there is a threshold effect in the government stability, corruption and NPLs relationship. More specifically, we have found that the impact of corruption and government stability on NPLs is negative and significant only if a certain threshold level has been attained; until then, the effect is insignificant.

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Determinants of bank profitability in Tunisia: does corruption matter?

Cited by 77 publications

References 13 publications

The determinants of profitability of Indian commercial banks: A panel data approach

The determinants of profitability of Indian commercial banks: A panel data approach

Corporate governance, social responsibility and sustainability commitments by banks: Impacts on credit risk and performance

Is the relationship between corruption, government stability and non‐performing loans non‐linear? A threshold analysis for the MENA region

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