Welcome to the Uniglobe Library
From this page you can:
Home |
Author details
Author Sushil Tiwary |
Available item(s) by this author
Refine your search Apply to external sources
Impact of firm specific factors, industry specific factors and macroeconomic factors on profitability of Nepalese commercial banks / Sushil Tiwary
Title : Impact of firm specific factors, industry specific factors and macroeconomic factors on profitability of Nepalese commercial banks Material Type: printed text Authors: Sushil Tiwary, Author Publication Date: 2016 Pagination: 101p. Size: GRP/Thesis Accompanying material: 7/B Languages : English Descriptors: Macroeconomics Class number: 332.632 Abstract: Profitability of bank is influenced by bank specific factors, industry specific factors and macro-economic factors (Sehrish et al. 2011). The factors influencing the commercial banks profitability are broadly categorized into two; internal and external factors, the internal factors such as management decisions and policies are the major determinants of profitability (Staikouras and Wood, 2004). Whereas, external factors affecting the bank’s profitability are market concentration, macroeconomic variables and legal environment it operates (Athanasoglou et al. 2006). Owoputi et al (2014) and Rahaman and Akhter (2015) pointed out that internal factors which are under the control of management decisions are liquidity holding, assets quality, expense management, capital adequacy and bank size. The study of Sehrish et al. (2011) advocated that external factors which are beyond the control of banks’ management decision like; gross domestic product, inflation and market concentration are the factors affecting banks’ profitability. The profitability of a bank is of a major concern because it measures the ability of bank to better withstand negative shocks and contribute to the stability of the system (Athanasoglou et al. 2006). From the above discussion, studies devoted to bank specific, industry specific and macroeconomic determinants of banks’ profitability are of greater significance.
The major purpose of this study is to examine the impact of bank specific, industry specific and macroeconomic variables on profitability of Nepalese commercial banks. Other specific objectives of the study are: (1) To study the structure and pattern of bank specific and industry specific factors of Nepalese commercial banks. (2) To examine the relationship between bank specific factors and profitability of Nepalese commercial banks. (3) To analyze the relationship between Industry specific factors and bank profitability of Nepalese commercial banks. (4) To investigate the impact of macroeconomic factors on profitability of Nepalese commercial banks.
The study is based on descriptive and causal comparative research design. The descriptive reserch design has been adopted to undertake fact-finding operation searching for adequate information about the impact of bank specific variable as liquidity position, assets quality, expense management, capital adequacy, bank size and other industry specific and macroeconomic variables on profitability of Nepalese commercial banks. Moreover, the study also emphasizes on cause and effect relationship between banks’ profitability and its determinants in Nepalse context. The study is based on secondary data which are gathered from 20 commercial banks in Nepal with 140 total number of observation for the period 2008 to 2014. The main sources of data are official website of concern commercial banks, annual reports of commercial banks, Supervision Reports published by NRB, annual reports of respective commercial banks and economic survey report published by ministry of finance of government of Nepal.
The result shows that the average return on assets is highest for NBBL and lowest for MBL. The average return on equity is highest for NBBL and lowest for MBL. The average net interest margin is highest for ADBLand lowest for NMB. The study reveals that assets quality, expense management and capital adequacy are positively related with banks’ profitability whereas GDP growth is negatively related with bank’ profitability. Further, It has been found that liquidity is positively related with ROA and ROE whereas negatively related with NIM. Bank size is found to be positively related with ROE and NIM whereas negatively related with ROA. Regarding industry specific and macroeconomic variable, the study found that market concentration and money supply growth is negatively related with NIM.
The major conclusion of the study is that expense management, capital adequacy and assets quality affect the profitability of Nepalese commercial banks positively whereas GDP growth affects negatively.
Impact of firm specific factors, industry specific factors and macroeconomic factors on profitability of Nepalese commercial banks [printed text] / Sushil Tiwary, Author . - 2016 . - 101p. ; GRP/Thesis + 7/B.
Languages : English
Descriptors: Macroeconomics Class number: 332.632 Abstract: Profitability of bank is influenced by bank specific factors, industry specific factors and macro-economic factors (Sehrish et al. 2011). The factors influencing the commercial banks profitability are broadly categorized into two; internal and external factors, the internal factors such as management decisions and policies are the major determinants of profitability (Staikouras and Wood, 2004). Whereas, external factors affecting the bank’s profitability are market concentration, macroeconomic variables and legal environment it operates (Athanasoglou et al. 2006). Owoputi et al (2014) and Rahaman and Akhter (2015) pointed out that internal factors which are under the control of management decisions are liquidity holding, assets quality, expense management, capital adequacy and bank size. The study of Sehrish et al. (2011) advocated that external factors which are beyond the control of banks’ management decision like; gross domestic product, inflation and market concentration are the factors affecting banks’ profitability. The profitability of a bank is of a major concern because it measures the ability of bank to better withstand negative shocks and contribute to the stability of the system (Athanasoglou et al. 2006). From the above discussion, studies devoted to bank specific, industry specific and macroeconomic determinants of banks’ profitability are of greater significance.
The major purpose of this study is to examine the impact of bank specific, industry specific and macroeconomic variables on profitability of Nepalese commercial banks. Other specific objectives of the study are: (1) To study the structure and pattern of bank specific and industry specific factors of Nepalese commercial banks. (2) To examine the relationship between bank specific factors and profitability of Nepalese commercial banks. (3) To analyze the relationship between Industry specific factors and bank profitability of Nepalese commercial banks. (4) To investigate the impact of macroeconomic factors on profitability of Nepalese commercial banks.
The study is based on descriptive and causal comparative research design. The descriptive reserch design has been adopted to undertake fact-finding operation searching for adequate information about the impact of bank specific variable as liquidity position, assets quality, expense management, capital adequacy, bank size and other industry specific and macroeconomic variables on profitability of Nepalese commercial banks. Moreover, the study also emphasizes on cause and effect relationship between banks’ profitability and its determinants in Nepalse context. The study is based on secondary data which are gathered from 20 commercial banks in Nepal with 140 total number of observation for the period 2008 to 2014. The main sources of data are official website of concern commercial banks, annual reports of commercial banks, Supervision Reports published by NRB, annual reports of respective commercial banks and economic survey report published by ministry of finance of government of Nepal.
The result shows that the average return on assets is highest for NBBL and lowest for MBL. The average return on equity is highest for NBBL and lowest for MBL. The average net interest margin is highest for ADBLand lowest for NMB. The study reveals that assets quality, expense management and capital adequacy are positively related with banks’ profitability whereas GDP growth is negatively related with bank’ profitability. Further, It has been found that liquidity is positively related with ROA and ROE whereas negatively related with NIM. Bank size is found to be positively related with ROE and NIM whereas negatively related with ROA. Regarding industry specific and macroeconomic variable, the study found that market concentration and money supply growth is negatively related with NIM.
The major conclusion of the study is that expense management, capital adequacy and assets quality affect the profitability of Nepalese commercial banks positively whereas GDP growth affects negatively.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 225/D 332.632 TIW Thesis/Dissertation Uniglobe Library Social Sciences Available