Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach

Ebrahimi, Pejman; Fekete-Farkas, Mária; Bouzari, Parisa; Magda, Róbert

doi:10.3390/jrfm14060257

Cited by 4 publications

(3 citation statements)

References 59 publications

(90 reference statements)

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“…For all banks operating in Nigeria between 2005 and 2014, he applied a pooled regression technique utilizing the GDP, ROE, and return on capital employed (ROCE) (Orebiyi & Otolorin, n.d.). Ebrahimi et al, 2021 Investigated in a related study how the financial performance of private banks impacted Iran's economic growth. He used cash, investments, ROA, GDP, and money.…”

Section: Literature Reviewmentioning

confidence: 99%

Political Stability and Performance of Financial Institutions in Pakistan

Usman,

Ali,

Ul Hassan

et al. 2024

ABGMCE

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The purpose of the present study is to analyze the impact of political stability on the performance of financial Institutions in Pakistan. This is the first study in the context of Pakistan that analyzes the performance of financial institutions during the period of political stability. The study's sample period was from 2008 to 2017 because, for the first time in Pakistan, two pure political governments completed their electoral term since the country's independence in 1947. The data is collected from the balance sheet analysis provided by the State Bank of Pakistan on its official website. For the data analysis, the study used the CAMEL analysis technique. The CAMEL analysis technique was also used by the IMF in 2020 to analyze the performance of underdeveloped and developing countries of the world. The results show that the performance of locally owned financial institutions (MCB Bank, United Bank Limited, and Allied Bank) in Pakistan increased during this period. Still, foreign-owned bank's performance is not good even if they cannot fulfill the minimum requirement established by the State Bank of Pakistan. The results contribute to the efficiency theory of financial institutions. Further, the study suggests that the researchers can test the significance of the results by changing sectors to confirm, modify, accept, or reject the results.

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Section: Literature Reviewmentioning

confidence: 99%

Political Stability and Performance of Financial Institutions in Pakistan

Usman,

Ali,

Ul Hassan

et al. 2024

ABGMCE

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“…Over the last four decades, the business world has faced technological advancement and the development of advanced products that satisfy customers' needs at lower costs (Ebrahimi et al, 2021;Kumar & Bansal, 2008). This phenomenon encourages business communities to attain production efficiency and provide competitive products at lower…”

Section: Introductionmentioning

confidence: 99%

Behavioral and Rational Explanation of Stock Price Performance Around Mergers and Acquisitions in Pakistan: Evidence from Decomposition of Market to Book Ratio

Nadeem,

Irfan,

Ali

et al. 2024

ABBDM

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This study aims to analyze the firm-specific errors (FSSE) as a proxy for mis-valuation and the long-run value-to-book ratio as a proxy for growth opportunities during mergers and acquisitions. In this study, the researcher used the RKRV methodology, which was developed in 2004, to analyze firm-specific errors and future growth opportunities by decomposing the market-to-book ratio in the merged organization of the Pakistani financial sector. The researcher used the mergers and acquisitions data from the financial sector from 2000 to 2021. For the purpose of analysis, the researcher prepared one year of pre-merger and three years of the merger performance of merged financial institutions and compared it with nonmerger financial institutions. The results of non-zero log differences between market values and fundamental values show that in Pakistan firms, firm-specific errors (FSSE) exist in the merged and nonmerger financial institutions. The second component of this methodology was to calculate the long-run value of the book (LRVTB) by taking the difference between the estimated market value and the firm's book value as a proxy for long-run growth opportunities. The results show that no long-run growth opportunities exist in Pakistan's merged and non-merged financial institutions because the difference between estimated market value and book value is negative. The third component of this study is to estimate time series sector error (TSSE) by taking log differences between fundamental value and estimated market value if the firm-specific error exists in the valuation of firms and there are no long-run growth opportunities. The results show that time series sector error also exists in the valuation of financial institutions. The researcher concludes that the mergers and acquisitions intentions are to meet the minimum capital requirement enforced by The State Bank of Pakistan. The merger and acquisition activities that took place during the years 2000 to 2011 are the legislative mergers. The results satisfy the economic shocks theory. There is no issue of agency problems, whether mergers are successful.

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“…);;Ebenezer et al (2017);Yahya et al (2017);Jadah et al (2020);Buzayehu et al (2020);Ebrahimi et al (2021);and Abdulazeez (2022). Inflation was determined to be statistically significant at the 99% confidence level and had a positive link with bank profitability as evaluated by ROA and NIM.…”

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confidence: 96%

Impact of Macroeconomic and Bank-Specific Variables on the Profitability of Commercial Banks in Nepal

Kunwar,

Jnawali

2023

Lumbini J. Bus. & Econ.

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The study aims to investigate how macroeconomic and bank-specific factors affect Nepalese commercial banks’ profitability. The panel data were collected from 16 Nepalese commercial banks for the fiscal year 2006/07 to 2020/21. The bank’s profitability is measured by net interest margin (NIM) and return on assets (ROA). The bank-specific variables considered in this study are bank size, capitalization, credit risk, deposit-to-total-assets ratio, capital adequacy ratio, and credit-to-deposit ratio. In addition, interest rate, broad money supply, inflation rate, and growth rate of the GDP are used as macroeconomic independent variables. The results of random effect model showed that the most significant bank-specific factor influencing Nepalese commercial banks’ profitability is bank size. Furthermore, the results reveal that the bank-specific factors namely bank size, credit risk, deposit-to-total assets, capital adequacy ratio, and credit-to-deposit ratio significantly increase net interest margin (NIM). Regarding the macroeconomic factors, the findings have explored that interest rates, inflation, economic growth, and the size of the money supply all significantly affect NIM. However when it comes to ROA, the data demonstrate that, aside from interest rate, all macroeconomic factors significantly affect the bank’s profitability as determined by ROA.

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Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach

Cited by 4 publications

References 59 publications

Political Stability and Performance of Financial Institutions in Pakistan

Political Stability and Performance of Financial Institutions in Pakistan

Behavioral and Rational Explanation of Stock Price Performance Around Mergers and Acquisitions in Pakistan: Evidence from Decomposition of Market to Book Ratio

Impact of Macroeconomic and Bank-Specific Variables on the Profitability of Commercial Banks in Nepal

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