Internal and external determinants of Iraqi bank profitability
| Autor: | Noor Hashim Mohammed Al-Husainy, Noor Sabah Hameed Al-Dahaan, Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi |
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| Rok vydání: | 2020 |
| Předmět: |
Marketing
Organizational Behavior and Human Resource Management government variables 050208 finance Index (economics) business.industry 05 social sciences Financial system lcsh:HG1501-3550 Management of Technology and Innovation Iraq 0502 economics and business bank specific lcsh:Banking Profitability index panel data model 050207 economics macroeconomic variables business Law Publication Finance |
| Zdroj: | Banks and Bank Systems, Vol 15, Iss 2, Pp 79-93 (2020) |
| ISSN: | 1991-7074 1816-7403 |
| Popis: | The determinants of bank profitability are very important, as bank profitability significantly affects the economies of countries. This study aims to examine the internal determinants (bank-specific characteristics) and external determinants (macroeconomic factors and government variables) of bank profitability in Iraq. The study uses unbalanced panel data from 18 banks in Iraq for thirteen years, from 2005 to 2017. The relationship is estimated using a fixed effects approach. The study selected 18 conventional banks considering their data availability in the period from 2005 to 2017. Based on the panel data method, the results show that bank size, the equity to total assets and total loans to total assets ratios, GDP growth, and government effectiveness have a significant and positive impact on the profitability of Iraqi banks. Meanwhile, credit risk, inflation, interest rate, unemployment, and political instability have a significant negative influence on bank profitability. To the authors’ knowledge, this study is considered one of the earliest studies of its kind, in which the main factors affecting Iraqi bank profitability are determined. That said, this paper makes a significant contribution to the theoretical literature, the industry, and policymakers, so that the performance of Iraqi conventional banks can be improved. Acknowledgments The authors acknowledge the support from Ministry of Higher Education in Iraq, University of Kerbala, AL-Furat AL-Awsat Technical University, and Imam AL-Kadhum College for Islamic Studies. Furthermore, we appreciate the support by Prof. Dr. Sivarajasingham Selliah, Assistant Prof. Dr. Muhammad Abrar Ul Haq, and Dr. Mohammed Hasan. |
| Databáze: | OpenAIRE |
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