Determinant of Bank Profitability in A Developing Economy: Empirical Evidence from The Philippines
Fadzlan Sufian, and Royfaizal Razali Chong, (2008) Determinant of Bank Profitability in A Developing Economy: Empirical Evidence from The Philippines. Asian Academy of Management Journal of Accounting and Finance, 4 (2). pp. 91-112. ISSN 1823-4992
Official URL: http://www.usm.my/journal/aamjaf/vol%204-2-2008/4-2-5.pdf
Universiti Putra Malaysia. Faculty of Economics and Management. Dept. of Economics & Khazanah Nasional Berhad, Malaysia. Khazanah Research and Investment Strategy.
Universiti Putra Malaysia. Faculty of Economics and Management. Dept. of Economics.
The present paper seeks to examine the determinants of Philippines banks profitability during the period 1990–2005. The empirical findings suggest that all the bank-specific determinant variables have a statistically significantly impact on bank profitability. The empirical findings suggest that size, credit risk, and expense preference behaviour are negatively related to banks' profitability, while non-interest income and capitalisation have a positive impact. During the period under study, the results suggest that inflation has a negative impact on bank profitability, while the impact of economic growth, money supply, and stock market capitalisation have not significantly explained the variations in the profitability of the Philippines banks.
|Additional Information:||We would like to thank the editor and two anonymous referees for their constructive comments and suggestions, which have significantly improved the contents of the paper. The remaining errors are our own responsibility. The analyses, opinions, and findings in this paper represent the views of the authors; they are not necessarily those of Khazanah Nasional Berhad.|
|Keywords:||banks, profitability, multivariate regression analysis, Philippines|
|Subjects:||H Social Sciences, Economics, Sociology|
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