Impact of Macro Specific Factor and Bank Specific Factor on Bank Liquidity using FMOLS Approach

Mahmood, Hamid; Khalid, Samia; Waheed, Abdul; Arif, Muhammad

doi:10.28991/esj-2019-01179

Cited by 14 publications

(17 citation statements)

References 32 publications

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“…Tobin's Q being market measure of performance which not only accounts for all the current decisions taken by the management of the firm but also accounts for the future expected performance of the firms. There exists an extensive body of literature (Cho, 1998;Himmelberg, Hubbard, & Palia, 1999;Mahmood, Khalid, Waheed, & Arif, 2019) which suggests Tobin's Q as a superior measure of performance when corporate governance and ownership structure variables are involved.…”

Section: Methodology Samplementioning

confidence: 99%

The Impact of Institutional Investment Horizon on Corporate Governance and Firm Performance

Waheed

Malik

2019

JISR-MSSE

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The purpose of this research study is to explore the impact of institutional investors in corporate governance and market measure firm performance mechanism. The study defined the investment horizon of the financial institutions on the bases of their long or short term investment objectives in the investee companies. In order to study these relationships the research analyzed an unbalanced panel of 287 non-financial firms’ from 2005 to 2016. The selected sample was analyzed by fixed effect, random effect and Arellano–Bond dynamic panel models. The results of the study confirm the positive impact of institutional investors (as a homogenous group) in enhancing the corporate governance and firms’ performance mechanism in the light of agency and signaling theories. However, when the financial institutions are analyzed on the basis of their investment horizon the empirical results deviated from the previous predicted theoretical findings. The research further concludes that long investment horizon institutional investors play a positive role in improving corporate governance index and Tobin’s Q, however, short investment horizon institutional investors are found detrimental for both the corporate governance and performance mechanism in Pakistani firms. The current study is unique in the context of the emerging economies, as it provides response to the previous contradictory opinions about the role of financial institutions in firm performance and corporate governance mechanism. Moreover, the current research is also useful for individual investors, corporate managers and regulatory authorities for better understanding of this phenomenon.

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Section: Methodology Samplementioning

confidence: 99%

The Impact of Institutional Investment Horizon on Corporate Governance and Firm Performance

Waheed

Malik

2019

JISR-MSSE

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“…The results are very useful as they enable a judgement of the impact of liquidity on emerging countries such as India. Mahmood et al (2019) have studied the impact of macro-and bank-specific factors on bank liquidity using the fully modified OLS approach. The study is based on a previous investigation conducted by Gafrej and Abbes (2017), which conducted a macroeconomic examination of the determinants of commercial bank liquidity factors in the Czech Republic.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors Impacting Liquidity of Banks: An Empirical Study From the Banking Sector in the Uae

2022

IJFB

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The primary purpose of this research is to substantiate the factors that impact the liquidity of the banks in the UAE. This research paper is an extension of the thesis that the primary author has undertaken to prove the test of significance and provide concrete evidence that the identified idiosyncratic and market related factors have significant impact on the liquidity risk for the banks in the UAE. The primary author has performed linear regression to identify the relation of the dependent and independent variables and once the test of significance is proved, the factors have been ranked using MURAME approach as part of ultimate thesis research objectives (MURAME approach is not forming part of this research paper). The research paper focusses on top 10 banks in the UAE and the study spans from 2010 to 2019. The study employs idiosyncratic factors like Deposit growth, NPL, CAR, ROA and market factors like GDP, Inflation, Unemployment, Oil prices and studies its relationship on dependent factor i.e., liquidity. Series of diagnostic tests are performed to find the impact of liquidity on idiosyncratic and market related factors.

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“…Hasil ini didukung oleh penelitian Vodova (2013), A. Abdullah & Khan (2012) dan Mahmood et al, (2019) yang menyatakan bahwa Size (Ukuran Bank) berpengaruh negatif dan signifikan terhadap Liquid Asset to Total Asset.…”

Section: H2b : Capital Adequacy Ratio Tidak Berpengaruh Terhadap Finaunclassified

“…Hasil penelitian ini diperkuat dengan penelitian Endri (2009) menyatakan bahwa rendahnya LDR bank disebabkan oleh kekhawatiran akan terjadi kredit macet sehingga kelebihan aset lebih cenderung ditempatkan pada instrument yang lebih aman dengan keuntungan yang pasti yaitu Sertifikat Bank Indonesia (SBI) dan pembelian obligasi pemerintah yang memiliki tingkat suku bunga cukup tinggi dan risiko rendah. Hasil ini didukung oleh penelitian Mahmood et al, (2019), Zaghdoudi & Hakimi (2017) dan Moussa (2015) yang menyatakan bahwa Size (Ukuran Bank) berpengaruh negatif dan signifikan terhadap Financing to Deposit Ratio.…”

Section: H3b : Size Berpengaruh Negatif Signifikan Terhadap Financingunclassified

Determinant of Indonesian Islamic Banks Liquidity Risk

Arfiyanti¹,

Pertiwi²

2020

JBMR

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An assessment of the liquidity of a bank is one way to determine whether the bank is in good health, fairly healthy, and unhealthy. This study aims to analyze the influence of the company's internal factors consisting of Return on Assets, Capital Adequacy Ratio and Bank Size on the liquidity ratio as measured by using two proxies, namely Liquid Asset to Total Asset (LATA and Financing Deposi Ratio (FDR). This study uses Islamic banks as the object of research in the 2014-2018 period. The results of data analysis using panel data regression showed that ROA and CAR had no effect on liquidity risk. Meanwhile, bank size has a significant negative effect on the liquidity ratio using LATA and FDR

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Impact of Macro Specific Factor and Bank Specific Factor on Bank Liquidity using FMOLS Approach

Cited by 14 publications

References 32 publications

The Impact of Institutional Investment Horizon on Corporate Governance and Firm Performance

The Impact of Institutional Investment Horizon on Corporate Governance and Firm Performance

Factors Impacting Liquidity of Banks: An Empirical Study From the Banking Sector in the Uae

Determinant of Indonesian Islamic Banks Liquidity Risk

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