Corporate Governance and Liquidity Risk of Industrial and Commercial Bank of China (ICBC)

Sew, TianHuan (2019): Corporate Governance and Liquidity Risk of Industrial and Commercial Bank of China (ICBC).

Abstract

In this paper, we are going to exam the relationship between the return on asset (ROA) with internal, external factors of the ICBC. Kupiec, P., & Lee, Y. (2012), stated that ROA is important statistic toward the profitability of banks. The data that we used is get from the annual reports of ICBC from the year of 2014 to 2018. The independent variables in this study which is internal and external factors are current ratio, credit risk, operating margin, CGI, GDP, interest rate, inflation, and also exchange rate, while the dependent variable is return on asset. Therefore, this study is to analyze the relationship between the internal and external factors of ICBC with return on asset. Data was analyzed by utilizing descriptive statistics, correlation, model of summary, ANOVA, and coefficient. In the analysis shows a significant relationship between return on assets and current ratio compare with other factors especially corporate governance index (CGI) and exchange rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: Return on Asset, corporate governance, company performance, liquidity risk
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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