Comprehensive study of the factors affecting the profitability of commercial banks

Document Type : Original Article

Authors
Alireza Shahreza 1
khosro faghani makrani 2
naghei fazeli 3
1 Ph.D. student of Accounting, Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran
2 Associate Professor of Accounting, Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran.
3 Assistant Professor of Accounting , Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran
10.30495/jik.0621.23481
Abstract
This study was conducted to evaluate the impact of intellectual capital, components of financial capital, banking industry indicators and macroeconomic indicators as internal and external factors on the return on assets and return on equity of commercial banks listed on the Tehran Stock Exchange. The required data have been collected from the audited financial statements and the information available on the Central Bank's website for the period 2015 to 2020. To evaluate the significance of the effect of the studied variables, multivariate regression analysis method has been used. The results show that intellectual capital and interest rates have a positive effect and assets quality, cost management and stock market development have a negative effect on return on assets of banks, and intellectual capital, ownership concentration and interest rates have a positive effect and asset quality, cost management, capital adequacy, stock market development and GDP growth rate, have a negative effect on return on equity of banks. Empirical evidence from this study emphasizes that the managers of commercial banks should pay enough attention to internal and external factors in order to improve the profitability of commercial banks.
Keywords
intellectual capital
financial capital
profitability
macroeconomics
banking industry indicators
  • اربابیان شیرین، جنتی مشکانی ابوالفضل، خجسته زینب (1395). تأثیر عوامل کلان اقتصادی بر ثبات و ریسک بانکی، فصلنامه پژوهش‌های پولی بانکی، 9(29)، 487-511.
  • بنی مهد بهمن، عربی مهدی، حسن‌پور شیوا (1397). پژوهش‌های تجربی و روش‌شناسی در حسابداری. انتشارات ترمه.
  • پور مهر مهدی، سپهر دوست حمید، نظیری محمدکاظم مهرگان، نادر (1397). تأثیر متغیرهای کلان اقتصادی و کیفیت مدیریت بر سودآوری بانک‌های خصوصی؛ رهیافت الگوی خود رگرسیون برداری ساختاری، فصلنامه تحقیقات مدل‌سازی اقتصادی دانشگاه خوارزمی، 9(34)، 201-255.
  • دستگیر محسن، عرب صالحی مهدی، جعفری راضیه امین، اخلاقی حسنعلی (1393). تأثیر سرمایه فکری بر عملکرد مالی شرکت، پژوهش‌های حسابداری مالی و حسابرسی. 6(21) 1-36.
  • دهقان دهنوی محمدعلی، یاوری کاظم، حسینی نسب سید ابراهیم، سحابی بهرام (1390). ارتباط ساختار بازار و کارایی با سودآوری با سودآوری در صنعت بانکداری ایران، مجله علمی پژوهشی سیاست‌گذاری اقتصادی، 6، 61-86.
  • رهنمای رود پشتی فریدون (1392). حسابداری مدیریت راهبردی مبتنی بر مدیریت هزینه ارزش‌آفرین، انتشارات دانشگاه آزاد اسلامی، 56-63.
  • علی احمدی علیرضا (1382). نگرشی جامع بر مدیریت استراتژیک، انتشارات تولید دانش،154-156.
  • محمود زاده محمود، عفتی باران فرشید. (1396). تأثیر سرمایه فکری بر عملکرد مالی در بانک‌های ایران، فصلنامه مدل‌سازی ریسک و مهندسی مالی، 2(1)، 60-79.
  • مهربان پور محمدرضا، نادری نور عینی محمدمهدی، اینانلو عفت، اشعری الهام (1396). عوامل مؤثر بر سودآوری بانک‌ها، فصلنامه علمی پژوهشی مطالعات تجربی حسابداری مالی،54، 113-134.
  • نجفی شریعت زاده ایرج، شعبان زاده مهدی، زمردیان غلامرضا (1395). بررسی مؤلفه‌های مؤثر بر سودآوری بانک‌های تجاری ایران با استفاده از الگوی پنل ARDL. مجله مهندسی مالی و مدیریت اوراق بهادار. 29. 159-171.
  • همتی حسن، معین‌الدین محمود، مظفری شمسی مریم (1389). بررسی ارتباط بین سرمایه فکری و ارزش بازار و عملکرد مالی شرکت‌های غیرمالی، فصلنامه علمی پژوهشی حسابداری مالی، 2(7)، 23-48.
  • Albertazzi, Ugo, Gambacorta, (2009). Bank profitability and the business cycle. Journal of Financial Stability. 5. 393-409.
  • Antonio, Trujillo‐ (2013). What determines the profitability of banks? Evidence from Spain, Accounting and Finance, 53, 561–586.
  • Asadul Islam, Nazirul Islam, Mahabub Rahman, Shafiullah Prodhan, Arifin Sultana. (2017). Determinants of Profitability of Commercial Banks in Bangladesh, International Journal of Banking and Financial Law, 1, 1-11.
  • Bashir, Abdel-Hameed, Kabir Hassan. (2003). Determinants of Profitability in Islamic Banks: Some Evidence from the Middle East, Islamic Economic Studies, 11(1) 31-57.
  • Edvinsson, Leif. (1997). Developing Intellectual Capital at Skandia Long Range Planning. 30(3) 366-373.
  • Endri Endri, Asti Marlina and Hurriyaturrohman (2020). Impact of internal and external factors on the net interest margin of banks in Indonesia. Banks and Bank Systems, 15(4), 99-107.
  • Fotios Pasioura, Kyriaki, Kosmidou. (2007). Factors influencing the profitability of domestic and foreign commercial banks in the European Union. Research in International Business and Finance. 21. 222–237.
  • Ghaith N. Al-Eitan1, Ayman M. Alkhazaleh, Ahmad S. Alkazali, Bassam Al-Own (2021). The Internal and External Determinants of the Performance of Jordanian Islamic Banks: A Panel Data Analysis, Asian Economic and Financial Review, Asian Economic and Social Society, 11(8), 644-657.
  • Glenn Growe, Marinus DeBruine, John Y. Lee, Jose´ F. Tudo´ n Maldonado. (2014). The profitability and performance measurement of U. S Regional banks using the predictive focus of the fundamental analysis research, Journal of Management Accounting, 24, 189-237.
  • Hennie van Greuning, Sonja Brajovic Bratanovic. (2009). Analyzing Banking Risk, A Framework for Assessing Corporate Governance and Risk Management, THE WORLD BANK, Washington, DC.
  • Isik Ozcan, Merve Kosaroglu, Ayhan Demirci. (2018). The Impact of Size and Growth Decisions on Turkish Banks’ Profitability, International Journal of Economics and Financial Issues, 8(1) 21-29.
  • Jacob A. Bikker, Tobias M. Vervliet. (2017). Bank profitability and risk taking under low interest rates. International Journal of Finance & Economics. 23. 3-18.
  • James Ayodele Owoputi, Olawale Femi Kayode, Felix Ademola Adeyefa. (2014). Bank-specific, industry-specific and macroeconomic indicators on bank profitability in Nigeria, Journal of Financial Stability, 10, 408-422.
  • Kutlay, Kaan, Safakli, okan. (2018). The Relationship between Bank Profitability and Micro Variables with Particular Emphasis on Bank Type: The Case of Northern Cyprus, International Journal of Academic Research in Accounting, Finance and Management Sciences, 8 (1) 26-40.
  • Mohamed Sayed Abou Elseoud, Mohamed Yassin, Mahmood Asad Moh’d Ali. (2020). Using a panel data approach to determining the key factors of Islamic banks’ profitability in Bahrain, Cogent Business & Management, 7:1, 1-16.
  • Muhammad Naeem, Qadar Bakhsh Baloch. (2017). factors affecting the Banks’ profitability in Pakistan, International Journal of Business Studies Review, 2, 33-49.
  • Murthy, Vijaya, Mouritsen, Jan. (2011). The performance of intellectual capital: Mobilising relationships between intellectual and financial capital in a bank, Accounting, Auditing & Accountability Journal, 24(5) 622-646.
  • Octavio, Danes Quirira, Soesetio, Yuli. (2019). Intellectual capital and bank profitability: Evidence from conventional and Islamic bank in Indonesia, Jurnal Keuangan dan Perbankan, 23(2) 191–205.
  • Peterson K Ozili, Olayinka, Uadiale. (2017). Ownership concentration and bank profitability, Journal of Future Business, 159–171.
  • Qaisar Ali, Selamah, Maamor, Selamah, Maamor, Hakimah, Yaacob, Usman Tariq Gill. (2018). Impact of Macroeconomic Variables on Islamic Banks Profitability, Journal of Accounting and Applied Business Research, 2, 1-16.
  • Riahi‐Belkaoui, Ahmed. (2003). Intellectual Capital and Firm Performance of US Multinational Firms, Journal of Intellectual Capital, 4(2), 215-265.
  • Sang Soo CHAE, Jae Youn LEE, Choong Lyol LEE. (2020). Profitability on Corporation Banks in ASEAN - Focusing Overseas Characteristics, Asian Economic and Financial Review, Asian Economic and Social Society, 10(3), 352-366.
  • Xu, Jian, Liu, Feng. (2020). The Impact of Intellectual Capital on Firm Performance: A Modified and Extended VAIC Model, Journal of Competitiveness, 12(1)161–176.
  • Yong Tan, Christos, Floros. (2012). Bank profitability and inflation: the case of China, Journal of Economic Studies, 39, 675-696.
  • Yong Tan. (2016). The impacts of risk and competition on bank profitability in China, Journal of International Financial Markets, Institutions & Money, 40, 85-110.