Portfolio mix and large-bank profitability in the USA

Miller, Stephen M.; Noulas, Athanasios G.

doi:10.1080/000368497326994

Cited by 274 publications

(237 citation statements)

References 3 publications

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“…13 As expected, a bubble burst has a negative impact on investment bank performance due to decreased investment activity (Allen and Carletti, 2010). 14 We also find a strong negative effect of the VIX indicator on bank performance at the 1% level of significance (all Models in Table 4) in line with previous studies (Bourke 1989;Miller and Noulas, 1997).…”

Section: Impact Of the Control Variablessupporting

confidence: 78%

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

Mamatzakis

Bermpei

2014

International Review of Financial Analysis

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This paper examines factors that affect the performance of investment banks in the G7 and Switzerland. In particular, we focus on the role of risk, liquidity and investment banking fees. Panel analysis shows that those variables significantly impact upon performance as derived from stochastic frontier analysis (SFA). Given our sample also comprises the financial crisis, we further test for regimes switches using dynamic panel threshold analysis. Results show different underlying regimes, in particular over the financial crisis. In addition, a strong positive effect of Z-Score on performance for banks in the regime of low default risk is reported, whilst fee-income ratio has also a positive impact for banks with low level of fees. On the other hand, liquidity exerts a negative impact. Notably, there is a clear trend of mobility of banks across the two identified threshold regimes with regards to risk a year before the financial crisis. Our results provide evidence that recent regulation reforms regarding capital adequacy and liquidity requirements are on the right track and could enhance performance.

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Section: Impact Of the Control Variablessupporting

confidence: 78%

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

Mamatzakis

Bermpei

2014

International Review of Financial Analysis

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“…Chirwa (2003); Miller and Noulas (1997) found a positive relationship with profitability which indicate higher the asset management, higher will be the bank's profitability.…”

Section: Asset Managementmentioning

confidence: 99%

“…Following are some of the studies that have targeted to explain the profitability of banks. Miller and Noulas (1997) investigated large commercial banks' profitability in the late 1980s by using cross section and pooled time series cross section regression. The study sample covered the time period of 1985 to 1990 of total 201 banks.…”

Section: Literature Reviewmentioning

confidence: 99%

Bank Profitability and its Determinants in Pakistan: A Panel Data Analysis after Financial Crisis

Ali¹

2016

JFER

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This study seeks to investigate the internal and external determinants of the Pakistani banking sector, specifically after the recent financial crisis of 2008. The sample data comprises total 26 banks, which include 17 conventional, 5 Islamic and 4 public banks. The selected sample covers the period of five years from 2009 to 2013. A balanced panel data regression model has been used and considered return on assets (ROA) and return on equity (ROE) as an alternative of bank's profitability. The results of the study suggest that bank's profitability is significantly affected by its internal determinants while external determinants are insignificant. The study found that operating efficiency, liquidity, non-performing loans to total assets and real GDP have a negative impact, whereas financial risk, gearing ratio, asset management, bank size, deposits, loans to total assets and inflation show positive impact on the asset side . On the other side, operating efficiency, gearing ratio, asset management, liquidity, deposits and real GDP have a positive impact, while financial risk, bank size, asset quality and inflation exert negative impact on the equity side. During the study period, our findings suggest that the Pakistan banking industry has managed well to avoid significant impact of external factors like inflation and GDP over profitability, however, efficient management is required to improve internal factors to be more profitable.

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“…However, Bourke (1989), Molyneux and Thornton (1992) and Miller and Noulas (1997) found a significant negative relationship between credit risk and bank profitability. A high level of credit risk generates a poor quality of assets and therefore low profitability.…”

Section: Bank Capital and Riskmentioning

confidence: 99%

Bank capital, profitability and risk in BRICS banking industry

Jabra

Mighri

Mansouri

2017

GBER

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This paper analyses the relationship between bank capital, risk and profitability for the BRICS banking industry data from 2004 to 2012. We use a dynamic panel data model based on two-step GMM estimation procedure. For the sake of analysis, we differentiate between before and after crisis periods in order to highlight the impact of financial crisis on clearing up the above relationship. The main empirical results are summarised as follows: 1) capital and risk are significantly and negatively related, while capital and profitability are significantly and positively linked; 2) bank capital has the greatest positive impact on ROE measure of profitability for investment banks; 3) BRICS investment banks are likely associated with a more sound financial supervision and technology; 4) regulatory quality and institutional developments are dependent upon differences in profitability and risk; 5) Results also provide evidence that financial crisis affects considerably the relationship between capital, risk and profitability. 90W. Ben Jabra et al.

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Portfolio mix and large-bank profitability in the USA

Cited by 274 publications

References 3 publications

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

Bank Profitability and its Determinants in Pakistan: A Panel Data Analysis after Financial Crisis

Bank capital, profitability and risk in BRICS banking industry

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