Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia

The purpose of this study is to investigates the factors that influence the profitability determinants on banks in Malaysia. This study covers six (6) anchor banks in Malaysia i.e. CIMB Bank Berhad, Maybank Berhad, Public Bank Berhad, Hong Leong Bank Berhad, RHB Bank Berhad and Affin Bank Berhad dur...

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Main Author:	Rosmariniwati, Ismail
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/3158/1/ROSMARINIWATI_ISMAIL.pdf https://etd.uum.edu.my/3158/3/ROSMARINIWATI_ISMAIL.pdf
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id	my-uum-etd.3158
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ahmad, Nor Hayati
topic	HG Finance
spellingShingle	HG Finance Rosmariniwati, Ismail Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia
description	The purpose of this study is to investigates the factors that influence the profitability determinants on banks in Malaysia. This study covers six (6) anchor banks in Malaysia i.e. CIMB Bank Berhad, Maybank Berhad, Public Bank Berhad, Hong Leong Bank Berhad, RHB Bank Berhad and Affin Bank Berhad during the period of 2006-2010. The objective of this study are firstly to find out the non finance factor and finance factor influence the banks’ profitability in Malaysia. Second objective is to identify the non finance versus finance factors influence on the profitability and third objective is to differentiate the significant profitability of finance and non finance factors. The study used ROE as a dependent variable to estimate the bank’s profit. The independent variables used in the study consisted of 11 variables namely capital adequacy ratio (CAR), capital to asset ratio (CR), leverage (LEV), bank size (SIZE), loan deposits (LD), loan loss provision (LLP), capital investment intensity (CII), liquidity assets (LIQ), Base Lending Rate (BLR), inflation rate (IFL), and gross domestic product (GDP). Multiple regression analysis has applied to examine the significance contribution of these variables in the bank’s profitability. The results however show that only SIZE and LIQ are significant at the 10% confidence level.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Rosmariniwati, Ismail
author_facet	Rosmariniwati, Ismail
author_sort	Rosmariniwati, Ismail
title	Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia
title_short	Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia
title_full	Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia
title_fullStr	Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia
title_full_unstemmed	Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia
title_sort	non finance versus finance factors' influence on banks' profitability : evidence from malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Faculty of Finance and Banking
publishDate	2012
url	https://etd.uum.edu.my/3158/1/ROSMARINIWATI_ISMAIL.pdf https://etd.uum.edu.my/3158/3/ROSMARINIWATI_ISMAIL.pdf
_version_	1747827511053516800
spelling	my-uum-etd.31582016-04-20T08:29:42Z Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia 2012-07-01 Rosmariniwati, Ismail Ahmad, Nor Hayati Faculty of Finance and Banking Faculty of Finance and Banking HG Finance The purpose of this study is to investigates the factors that influence the profitability determinants on banks in Malaysia. This study covers six (6) anchor banks in Malaysia i.e. CIMB Bank Berhad, Maybank Berhad, Public Bank Berhad, Hong Leong Bank Berhad, RHB Bank Berhad and Affin Bank Berhad during the period of 2006-2010. The objective of this study are firstly to find out the non finance factor and finance factor influence the banks’ profitability in Malaysia. Second objective is to identify the non finance versus finance factors influence on the profitability and third objective is to differentiate the significant profitability of finance and non finance factors. The study used ROE as a dependent variable to estimate the bank’s profit. The independent variables used in the study consisted of 11 variables namely capital adequacy ratio (CAR), capital to asset ratio (CR), leverage (LEV), bank size (SIZE), loan deposits (LD), loan loss provision (LLP), capital investment intensity (CII), liquidity assets (LIQ), Base Lending Rate (BLR), inflation rate (IFL), and gross domestic product (GDP). Multiple regression analysis has applied to examine the significance contribution of these variables in the bank’s profitability. The results however show that only SIZE and LIQ are significant at the 10% confidence level. 2012-07 Thesis https://etd.uum.edu.my/3158/ https://etd.uum.edu.my/3158/1/ROSMARINIWATI_ISMAIL.pdf text eng validuser https://etd.uum.edu.my/3158/3/ROSMARINIWATI_ISMAIL.pdf text eng public masters masters Universiti Utara Malaysia Al-Obaidan,A.M. 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(2007).Factors influencing the profitability of domestic and foreign commercial banks in the European Union.Research in International Business and Finance (21)pp.222–237. Polius,T., & Samuel,W. (2002).Banking efficiency in the Eastern Caribbean Currency Union:An examination of the structure-conduct performance paradigm and the efficiency hypothesis. Money Affairs pp.75-92. Sufian,F. (2009).Determinants of bank efficiency during unstable macroeconomic environment: Empirical evidence from Malaysia.Research in International Business and Finance (23)pp.54–77. WORKING PAPERS James,W.S. & Jose,C.A. (2011).Banking Profitability Determinants.Researcher at the Business Intelligence Research Centre of hosted at the Business Intelligence Service, London, UK. 2nd Floor,147 St.John Street,London,UK. Katib,M.N. (2004).Market structure and performance in the Malaysian banking industry: a robust estimation. Schaeck,K. & Cihak,M. ( 2006).Banking competition and capital ratios.Class Business School International Monetary Fund 106 Bunhill Row 700 19th Street,N.W.London EC1Y 8TZ, UK Washington,D.C.20431,USA. Wong,J., Fong,T., Wong,E., & Ka-fai Choi of the Research Department (2007).Hong Kong Monetary Authority Quarterly Bulletin,pp.5-15. WEBSITE BNM annual report, 2008. Asian Development Bank website http://www.adb.org/Documents/Books/Key_Indicators/2008/pdf/mal.pdf Malaysian Industrial Development Authority websites: http://www.mida.gov.my/en_v2/index.php?page=banking-system http://www.mida.gov.my/en_v2/index.php?page=services-sectorMalaysian Industrial Development Authority websites: http://www.mida.gov.my/en_v2/index.php?page=banking-system http://www.mida.gov.my/en_v2/index.php?page=services-sector http://www.academicjournals.org/AJBM

Non Finance Versus Finance Factors' Influence on Banks' Profitability : Evidence from Malaysia

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