The Impacts of Liquidity on Profitability in Banking Sectors of Iraq

Ibrahim, Sardar Shaker

doi:10.20525/ijfbs.v6i1.650

Cited by 21 publications

(20 citation statements)

References 5 publications

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“…The results of the study on the effect of bank liquidity on the profitability of commercial banks showed that an effect of bank liquidity (liquidity ratio, legal liquidity ratio, employment ratios) on the ROA of Jordanian commercial banks for the period 2013-2017. This was confirmed by the study of (Ibrahim, 2017) which was contradicted with the study of (Rahma and Sereen, 2009). In addition, it was found that the effect of bank liquidity (liquidity ratio, legal liquidity ratio, employment ratios) on the return on equity of Jordanian commercial banks for the period 2013-2017.…”

Section: Discussionmentioning

confidence: 80%

The Impact of Bank Liquidity on the Profitability of Commercial Banks: An Applied Study on Jordanian Commercial Banks for the Period (2013/2017)

AlAli¹

2019

IJEFI

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The study aims at showing the effect of banking liquidity on the profitability of commercial banks in Jordan for the period 2013-2017. The liquidity was measured by the variables of (liquidity, legal liquidity, employment ratio) as well as the profitability of commercial banks as a return on equity and assets (liquidity ratio, legal liquidity ratio, employment ratios) on the return on assets of Jordanian commercial banks. In addition, it was found that there is an effect of bank liquidity (liquidity ratio, legal liquidity ratio) On the return on equity of the Jordanian commercial banks for the period 2013-2017. It also found that the impact of bank liquidity (liquidity ratio, legal liquidity ratio, employment ratios) on the profitability of commercial banks for the period 2013-2017 is attributable to the size of the bank. The study recommends that commercial banks should consider banking liquidity because it is of great importance in two ways. First, in the face of withdrawals from deposits, in order to avoid destabilizing the trust between the two parties, the bank and the depositors, thus leading to harm the shareholders. The second aspect is satisfying the needs of individuals with credit facilities. Therefore, commercial banks are required to measure bank liquidity and satisfy their needs because they have a negative impact on the size of bank liquidity, if it is large and with low profits, and on the other hand, the size may be low leading to bankruptcy of the bank.

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Section: Discussionmentioning

confidence: 80%

The Impact of Bank Liquidity on the Profitability of Commercial Banks: An Applied Study on Jordanian Commercial Banks for the Period (2013/2017)

AlAli¹

2019

IJEFI

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“…The studies of Pimentel et al (2005) and Hirigoyen (1985) argue that due to low liquidity, firms resort to loans which impact profitability and this works like a vicious cycle. Ibrahim (2017) and Pimentel et al (2005) find a positive relationship between liquidity and financial performance that differs from the finding of Lamberg and Vålming (2009) which finds no relationship. For this research, this aspect is measured using current ratio as used by Makris (2016) and Ayaydin and Karaaslan (2014).…”

Section: Liquidity and Profitabilitymentioning

confidence: 77%

The Impact of Lagged R&D Expenses on Firm Performance: Empirical Evidence from the BSE Healthcare Index

Sinha

Mondal

2020

Colombo Bus. J

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The study finds the impact of lagged Research and Development expenditure on financial performance. The investigation analyses 69 pharmaceutical companies included in the BSE healthcare index (India) using secondary data for the period of 2008 to 2017. The two dependent variables which are considered separately are Return on Asset (ROA) and Return on Equity (ROE). The two estimated regression models show that both the lagged value and its quadratic term have a significant influence on the accounting-based measures. With regard to the control variables, size and leverage are found to influence negatively whereas liquidity poses a positive effect on these two accounting-based performance measures. The article contributes by highlighting that the true relationship between R&D and financial performance is represented by a U-shaped curve as evident in few other studies.

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“…Liquidity has significant impact on profitability (Bibi & Amjad, 2017). The result of previous study found that profitability have negative and significant impact on financial distress (Moch et.al, 2019; Masdupi et al, 2018;Ibrahim, 2017).…”

Section: Literature Reviewmentioning

confidence: 94%

Profitability As Determining Factor to Anticipate Company Bankruptcy

Kadarningsih

Oktavia

Falah

et al. 2021

EEA

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The purpose of this study is to find out the effect of liquidity, leverage, operating capacity on financial distress through profitability as intervening variable. The population of this study is manufacturing companies listed on the IDX over the sampling. Based on the technique purposive sampling, obtained sample of 123 data from 54 manufacturing companies on IDX list from 2016 until 2018. This study uses path analysis using Warp PLS 5.0 software and Sobel test to find significancy of mediating variable. The results of this study indicate that profitability and leverage have a significant effect on the financial distress of manufacturing companies. Meanwhile, liquidity, and operating capacity have no effect on the financial distress of manufacturing companies. The intervening test confirmed that profitability have partial mediation role for relationship between liquidity, leverage, operating capacity with financial distress. Furthermore, the Sobel test also confirmed that profitability can significantly mediate the effect of liquidity, leverage and operating capacity on financial distress.

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The Impacts of Liquidity on Profitability in Banking Sectors of Iraq

Cited by 21 publications

References 5 publications

The Impact of Bank Liquidity on the Profitability of Commercial Banks: An Applied Study on Jordanian Commercial Banks for the Period (2013/2017)

The Impact of Bank Liquidity on the Profitability of Commercial Banks: An Applied Study on Jordanian Commercial Banks for the Period (2013/2017)

The Impact of Lagged R&D Expenses on Firm Performance: Empirical Evidence from the BSE Healthcare Index

Profitability As Determining Factor to Anticipate Company Bankruptcy

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