The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini

Bank’s financial distress issue is one of the major contributing factors to global financial crisis. Financial distress diagnosis has been a focal point of issue in financial analysis during the past decades due to its severe effects on the operation of the bank and even on the whole economy of a co...

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Main Authors: Abdul Karim, Yaasmin Farzana, Syed Roslan, Sharifah Nur Ainn, Zaini, Nurul Diana
Format: Student Project
Language:English
Published: Faculty of Business and Management 2013
Online Access:http://ir.uitm.edu.my/id/eprint/16847/
http://ir.uitm.edu.my/id/eprint/16847/2/PPm_YAASMIN%20FARZANA%20ABDUL%20KARIM%20BM%2013_5.pdf
id uitm-16847
recordtype eprints
spelling uitm-168472019-09-11T06:23:55Z http://ir.uitm.edu.my/id/eprint/16847/ The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini Abdul Karim, Yaasmin Farzana Syed Roslan, Sharifah Nur Ainn Zaini, Nurul Diana Bank’s financial distress issue is one of the major contributing factors to global financial crisis. Financial distress diagnosis has been a focal point of issue in financial analysis during the past decades due to its severe effects on the operation of the bank and even on the whole economy of a country. The performance of the banks will generate a more sustainable performance and promote a greater health of country's financial performance as a whole. This study investigates the determinants of banks’ financial performance. Six local commercial banks were chosen to represent the local commercial banks in Malaysia during the period of 1990-2010. The study used E-Views software to run multiple linear regression analysis which measure the relationship between Return on Equity (ROE) and its possible determining factors namely financial distress, bank size, gross domestic product (GDP), inflation rate and interest rate. The overall results reveal that the internal factors which consist of financial distress and bank size have significant impact on banks financial performance while the external factors which consist of gross domestic product (GDP), inflation rate and interest rate did not influence the banks’ financial performance. Financial distress, bank size, interest rate and inflation rate are found to have a negative relationship with the banks’ financial performance whereas gross domestic product (GDP) has a positive relationship with the banks’ financial performance. Faculty of Business and Management 2013 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/16847/2/PPm_YAASMIN%20FARZANA%20ABDUL%20KARIM%20BM%2013_5.pdf Abdul Karim, Yaasmin Farzana and Syed Roslan, Sharifah Nur Ainn and Zaini, Nurul Diana (2013) The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini. [Student Project] (Unpublished)
repository_type Digital Repository
institution_category Local University
institution Universiti Teknologi MARA
building UiTM Institutional Repository
collection Online Access
language English
description Bank’s financial distress issue is one of the major contributing factors to global financial crisis. Financial distress diagnosis has been a focal point of issue in financial analysis during the past decades due to its severe effects on the operation of the bank and even on the whole economy of a country. The performance of the banks will generate a more sustainable performance and promote a greater health of country's financial performance as a whole. This study investigates the determinants of banks’ financial performance. Six local commercial banks were chosen to represent the local commercial banks in Malaysia during the period of 1990-2010. The study used E-Views software to run multiple linear regression analysis which measure the relationship between Return on Equity (ROE) and its possible determining factors namely financial distress, bank size, gross domestic product (GDP), inflation rate and interest rate. The overall results reveal that the internal factors which consist of financial distress and bank size have significant impact on banks financial performance while the external factors which consist of gross domestic product (GDP), inflation rate and interest rate did not influence the banks’ financial performance. Financial distress, bank size, interest rate and inflation rate are found to have a negative relationship with the banks’ financial performance whereas gross domestic product (GDP) has a positive relationship with the banks’ financial performance.
format Student Project
author Abdul Karim, Yaasmin Farzana
Syed Roslan, Sharifah Nur Ainn
Zaini, Nurul Diana
spellingShingle Abdul Karim, Yaasmin Farzana
Syed Roslan, Sharifah Nur Ainn
Zaini, Nurul Diana
The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini
author_facet Abdul Karim, Yaasmin Farzana
Syed Roslan, Sharifah Nur Ainn
Zaini, Nurul Diana
author_sort Abdul Karim, Yaasmin Farzana
title The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini
title_short The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini
title_full The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini
title_fullStr The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini
title_full_unstemmed The determinants of banks’ financial performance in Malaysia / Yaasmin Farzana Abdul Karim , Sharifah Nur Ainn Syed Roslan and Nurul Diana Zaini
title_sort determinants of banks’ financial performance in malaysia / yaasmin farzana abdul karim , sharifah nur ainn syed roslan and nurul diana zaini
publisher Faculty of Business and Management
publishDate 2013
url http://ir.uitm.edu.my/id/eprint/16847/
http://ir.uitm.edu.my/id/eprint/16847/2/PPm_YAASMIN%20FARZANA%20ABDUL%20KARIM%20BM%2013_5.pdf
first_indexed 2023-09-18T22:57:00Z
last_indexed 2023-09-18T22:57:00Z
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