Factors affecting profitability: an empirical study on Ethiopian Banking Industry
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Dosyalar
Tarih
2019
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
İstanbul Ticaret Üniversitesi
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The main purpose of this study was to examine factors affecting profitabilityEthiopian banking industry. The study adopted quantitative research approach and the statistical tool was used to estimate the profitability, which was measured by returnon asset as a function of balance sheet, industry specific and macroeconomic explanatoryvariables. The finding of the study showed that loan and advance, current deposit, otherliabilities and gross domestic product have statistically significant and positiverelationship with banks’ profitability. On the other hand, variables like fixed deposit, market concentration have a negative and statistically significant relationship withbanks’ profitability. However, the relationship of deposit with other banks, sum ofinvestment, saving deposit and inflation is found to be statistically insignificant. As aresult, the study recommended that Ethiopian Banking Industry must focus on increasingpublic awareness to mobilize more savings this will enhance their performance inprovision of loans and advance to customers. Finally, Ethiopian Banking Industryshouldnot only be concerned about internal structures and policies, but they must consider boththe internal environment and the macroeconomic environment together in fashioning out strategies to improve their profitability.
Açıklama
Anahtar Kelimeler
Return On Asset, Profitability, Banking Industry
Kaynak
International Journal of Commerce and Finance
WoS Q Değeri
Scopus Q Değeri
Cilt
5
Sayı
2
