The determinants of liquidity of Indian listed commercial banks: A panel data approach

Homaidi, Eissa A. Al; Tabash, Mosab I.; Farhan, Najib H.S.; Almaqtari, Faozi A.

doi:10.1080/23322039.2019.1616521

Cited by 40 publications

(46 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…On the contrary, if the majority of depositors were individuals then forecasting would be easier, which would enable banks to operate at low liquidity rates. The result is in line with (Assfaw, 2019;Al-Homaidi, 2019).…”

Section: Regression Results and Discussionsupporting

confidence: 83%

“…Based on the previous studies such as Vodova, (2013), Al-Homaidi, et al, (2019) and Al-Harbi (2017), the current study used the following panel data model (1) to explore the impact of macroeconomic and bank-specific variables on liquidity for Jordan commercial banks. In the model bank liquidity (LIQ) is measured by the ratio of liquid assets/total assets.…”

Section: Methodsmentioning

confidence: 99%

“…Through the literature review, there are a number of studies related to the current study that dealt with the determinants or variables affecting the (LIQ) of commercial banks around the world, including that of Al-Homaidi, et al, (2019) who examined (LIQ) determinants of 37 banks in India over the period 2008-2017. The output of panel data analysis indicated that capital adequacy (CADEQ), bank size, and ROA, deposit ratio, have a positive significant impact on (LIQ).…”

Section: Empirical Evidencementioning

confidence: 99%

See 2 more Smart Citations

Macroeconomic and Bank-Specific Variables and the Liquidity of Jordanian Commercial Banks

Al-Qudah¹

2020

JAFEB

View full text Add to dashboard Cite

This study aimed to explore the impact of macroeconomic (Real GDP growth (GDPG), Inflation rate (INF)) and bank-specific variables (profitability (ROA), capital adequacy (CADEQ), non-performing loans (NPL), deposit growth (DEPG)) on the liquidity (lIQ) of 13 listed Jordanian commercial banks for the period 2011-2018. Panel data analysis, Pooled least square, fixed effects model and random effects model, Lagrange multiplier test, and Hausman test were used. The random effects model output shows that, macroeconomic variables have a significant impact on Jordanian commercial banks liquidity since inflation has a positive impact while GDPG has a negative impact on banks (LIQ). On the other hand among the bank-specific variables capital adequacy and deposit growth have a positive significant impact on banks (LIQ), while (NPL) and (SIZE) have a negative significant impact on Jordanian commercial banks liquidity. But ROA has a negative insignificant impact on (LIQ). The findings of the study suggest that commercial banks departments need to pay attention to the economic and internal variables of banks in order to maintain acceptable levels of liquidity.

show abstract

Section: Regression Results and Discussionsupporting

confidence: 83%

Section: Methodsmentioning

confidence: 99%

Section: Empirical Evidencementioning

confidence: 99%

See 1 more Smart Citation

Macroeconomic and Bank-Specific Variables and the Liquidity of Jordanian Commercial Banks

Al-Qudah¹

2020

JAFEB

View full text Add to dashboard Cite

show abstract

“…This indicates that exchange rate does directly affect the financial stability of commercial banks and thus can moderate the relationship between firm characteristics index and financial stability. This finding is in agreement with those of Al Homaidi, Tabash, Farhan and Almaqtari (2019) and Merz (2017).…”

Section: Cons= Constantsupporting

confidence: 94%

Moderating Effect of Exchange Rate on the Relationship Between Firm Characteristics and Financial Stability of Commercial Banks in Kenya

2020

EJBM

View full text Add to dashboard Cite

The study sought to determine the moderating effect of exchange rate on the relationship between firm characteristics and financial stability of commercial banks in Kenya. The study sought to establish the effect of exchange rate on financial stability of commercial banks in Kenya. The study further sought to determine the effect of firm characteristics as a composite index on financial stability of commercial banks in Kenya. Positivism research philosophy was employed. Causal research design was utilized in this study. The study targeted 17 commercial banks from which secondary data was collected from the published financial reports for the study period between 2011 and 2018. Generalized method of moments (GMM) model guided by dynamic Panel regression analysis was utilized. Data analysis was run on the Stata 13 package and findings presented in tables while deriving conclusions and recommendations from the study findings. The study found out that exchange rate had a significant moderating effect on the relationship between firm characteristics and financial stability (β= 0.422519, p= 0.095) of commercial banks in Kenya. The study also found out that firm characteristics as a composite index had a significant negative effect on financial stability (β=-1.006024, p= 0.063) of commercial banks in Kenya. The coefficient of exchange rate at (β= 0.0177881, p=0.000) shows a statistically significant positive effect on financial stability of commercial banks. To deal with issues of exchange rate fluctuations, the study recommends that commercial banks in Kenya should adopt a unified exchange rate. The study further recommends that commercial banks should focus on streamlining their internal firm characteristics in order to ensure financial stability is achieved collectively since they are associated with variability in the exchange rate.

show abstract

“…As seen in Model 1, the relationship between GDP and ROA and the exchange rate and ROA are positively significant at (P < 0.01), while the relationship between ROA and the other control variables such as inflation, non-performing loans, and bank deposits are negatively significant. These results are consistent with previous literature on the relationship of these macroe-economic variables and banking sector profitability (Al-Homaidi et al, 2019;AlSagr et al, 2018;Belkhaoui et al, 2020;Bhattarai, 2018;El-Chaarani, 2019;Zampara et al, 2017). In Model 2, we add GPR and oil rents to the control variables presented in Model 1.…”

Section: Emperical Estimationsupporting

confidence: 89%

Oil Rent, Geopolitical Risk and Banking Sector Performance

Alsagr

Hemmen

2020

IJEEP

View full text Add to dashboard Cite

This paper aims to assess and compare the impact of geopolitical risk (GPR) on the banking sector profitability of "oil and nonoil dependent" emerging markets. For empirical estimation, we used annual macro-level data of all the countries listed in the GPR index from the period 1998 to 2017. The results of the fixed effect model indicate a negative significant impact of GPR on banking sectors' profitability. Additionally, the results highlight the significant weakening moderation role of oil rent in the negative impact of GPR on the banking sector profitability. Multiple contributions arise from this study: Firstly, it explains and compares the impact of geopolitical risk on the banking sector profitability in non-oil-dependent. and oil-dependent economies. Secondly, our study sheds the light on the moderation effect of oil rent in the relationship between geopolitical risk and banking sector profitability. Indeed, the oil "curse or blessing" argument was neither revealed nor clarified in the relevant literature.

show abstract

The determinants of liquidity of Indian listed commercial banks: A panel data approach

Cited by 40 publications

References 30 publications

Macroeconomic and Bank-Specific Variables and the Liquidity of Jordanian Commercial Banks

Macroeconomic and Bank-Specific Variables and the Liquidity of Jordanian Commercial Banks

Moderating Effect of Exchange Rate on the Relationship Between Firm Characteristics and Financial Stability of Commercial Banks in Kenya

Oil Rent, Geopolitical Risk and Banking Sector Performance

Contact Info

Product

Resources

About