Mohammad Reza Mehrabanpour; Mohammad Mehdi Naderi Noorain; Effat Inanlou; Elham Ashari
Abstract
highlighted the role of well-functioning financial systems in investing in different sectors of the economy. The financial systems facilitate the economic growth by aggregating the limited resources for enormous investments. Considering the important role of banks in financial systems and the significant ...
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highlighted the role of well-functioning financial systems in investing in different sectors of the economy. The financial systems facilitate the economic growth by aggregating the limited resources for enormous investments. Considering the important role of banks in financial systems and the significant impact of the Profitability of Banks on their activities, this paper empirically analyses the factors determining the profitability of 15 banks for the period of 1384 – 1393. It should be noted that the higher levels of profitability in banks not only enables them to grant further credit, but also facilitates the investment process in risky environments. According to the literature, we divided the factors into two groups: bank specific factors and macroeconomic factors. The results of examining hypothesis using panel analyses and Eviews software and the return on equity (ROE) as the profitability measure, indicate that there is a positive relationship between the profitability factors and the asset structure, revenue diversification, economic growth and inflation. In addition, capitalization, capital structure, size, industry concentration and interest rate have a negative effect on bank profitability.
Abstract
In the recent decades, in developing countries, economic growth has been so important. Existence of a well-function financing systems is crucial for investment in different parts of economy. Financing systems can facilitate countries economic growth, by concentrating, scarce resources and funds for large ...
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In the recent decades, in developing countries, economic growth has been so important. Existence of a well-function financing systems is crucial for investment in different parts of economy. Financing systems can facilitate countries economic growth, by concentrating, scarce resources and funds for large investments. Due to key role of banks on financing systems and significant effect of profitability on operation of them, studying about influencing factor on banks profitability has so importance. It’s worthwhile to note, greater profitability not only allows the bank to create funds to grant greater credits but also facilitates investment on risky environment for regulators of banks. Due to the provided explanation, in this research, influencing factors on banks profitability was investigated. It’s also worthwhile to note, Return on Equity (ROE) was used as the index of profitability. Sample of study encompasses 15 banks in the period of 2006-2015 for 10 years. Liner regression model with combination approach was used. Based on literature, influencing factors are divided in two groups: The first group encompasses bank-specific factors and the second one encompasses factors related to industry structure and macro-economic environment. Results indicated that assets structure, revenue diversification, economic growth and inflation have positive relation with bank profitability while capitalization, financial structure, size, bank competition and interest rate have negative relation with bank profitability.
M. Araab Mazar Yazdi; R. Taher Khani
Volume 8, Issue 29 , April 2010, , Pages 97-113
Abstract
As a functional and economical procedure, the change of firm ownership into generalization, leads to a growth in firm fund and as a result, an Expansion in its commercial operation. The need for great funds in commercial units and the formation of corporation as a result, leaded to separation of ownership ...
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As a functional and economical procedure, the change of firm ownership into generalization, leads to a growth in firm fund and as a result, an Expansion in its commercial operation. The need for great funds in commercial units and the formation of corporation as a result, leaded to separation of ownership from manager firms, and so to a conflict among the managers and the owners. In recent years, corporate governance-including a network of connections among stockholders, managers, accountants, and other beneficiaries- has been posed as a decreasing factor of the great discrepancy among stockholders and also the segregation of ownership from commercial unit control. One of the most important factors which contribute to the control of management relationship is the board of director and its composition. As a result, it is of crucial importance to survey factors related to board composition and its effect on the firm operation.
The locative domain of this survey is the collection of listed Companies in Tehran Stock Exchange and its temporal domain lies between year1382 till 1386. On the basis of this, the chosen samples include 130 firms.
Considered questions in this research have been posed as six hypotheses. The result of hypothesis testing shows that corporate governance variables including the number of members of board, the number of its non-executive members and the number of major shareholders have no effect on the return on equity (ROE), but on the other hand, this variables affect Tobin’s. The results show that the number of board members has a negative and at the same time negligible effect on Tobin’s, but the nonexecutive members of board and the number of majority shareholders have positive and also insignificant effect on Tobin’s.
Seyed Majid Shariatpanahi
Volume 6, Issue 21 , April 2008, , Pages 61-82
Abstract
Resources allocation is considered to be one of the main activities for banks. The most important risk that threatens this activity is commitments refusal on the part of facilities receiver. One of the ways that can be used to benefit properly from investment opportunities and help to stop wasting ...
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Resources allocation is considered to be one of the main activities for banks. The most important risk that threatens this activity is commitments refusal on the part of facilities receiver. One of the ways that can be used to benefit properly from investment opportunities and help to stop wasting resources is bankruptcy prediction and default probability.
In this research, we have established Multiple Discriminant Analysis (MDA) model to predict the default of the companies which receive facilities and credit. The result of this research, which are based on the information provided by the companies receiving facilities and credit from Industry and Mine Bank, have indicated that, five ratios of the seventeen selected ratios have the most power in distinguishing the group of companies with default and without default. Another result is that there is a trade-off between ROA and default probability and the last conclusion is that the companies with a higher net profit are more successful in repaying their credits and facilities.
