Factors Effecting Commercial Banks Profitability in Pakistan

Shah, Mumtaz Hussain and Khan, Sajjad (2017): Factors Effecting Commercial Banks Profitability in Pakistan. Published in: Journal of Business and Tourism , Vol. 3, No. 1 (30 June 2017): pp. 1-12.

Abstract

Due to significant contribution of commercial banks in the economic progress of Pakistan, this research has been carried out to analyse the possible effect of different relevant factors on the profitability of commercial banks in the country. Profitability is measured by return on assets (ROA). Using pooled regression analysis on yearly data collected from the annual reports for a panel of 14 commercial banks for eight years from 2007 to 2014, it was found that equity to assets, debts to assets, deposits to assets, bank size and assets management have a significant influence on the commercial banks profitability in Pakistan.

• Item Type: MPRA Paper
• Language: English
• Keywords: Commercial Banks, Profitability, and Panel Data.
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; G - Financial Economics > G3 - Corporate Finance and Governance > G33 - Bankruptcy ; Liquidation

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