ASSESSING THE IMPACT OF LIQUIDITY ON PROFITABILITY: AN EVIDENCE FROM TURKISH BANKING SECTOR

Öndeş, Turan; Binte Osman, Asfia

doi:10.21733/ibad.686734

Makale Tam Makale Uluslararası 2020

ASSESSING THE IMPACT OF LIQUIDITY ON PROFITABILITY: AN EVIDENCE FROM TURKISH BANKING SECTOR

Turan Öndeş, Asfia Binte Osman

IBAD Sosyal Bilimler Dergisi Sayı 7 · ss. 393–402 · 01.04.2020

DOI ile aç

Özet

ASSESSING

THE IMPACT OF LIQUIDITY ON PROFITABILITY: AN EVIDENCE FROM TURKISH BANKING

SECTOR

Abstract

The purpose of this study is to assess

the impact of liquidity and profitability of Turkish banks. The study is based

on panel data collected from website of the Association of Banks of Turkey. We

select 10 biggest banks of Turkey based on asset size as on 31.12.2017 and used

10 years data ranging from 2008-2017. Loan Deposit,

Deposit Asset, Liquid Asset to TA, Liquid Asset to Short- term Liability and

Liquid Assets to Deposits and Non-Deposit Resources Ratio has been considered as

a proxy of liquidity and average ROA and average ROE has been considered as a proxy

of profitability. We analyze the data through statistical techniques namely

descriptive statistics, correlations and regressions with the support of EViews

8. We run Random effect model in our study.

The results

of the study reveal that Loan Deposit Ratio has

significant negative influence on both ROE and ROA. Liquid Asset to Total Asset

ratio also has significant negative influence on both ROE and ROA. Deposit

Asset Ratio has a significant negative influence on ROA but insignificant

negative influence on ROE. Moreover, Liquid Asset to Deposit and Non-Deposit

Resources Ratio has a significant negative impact on ROE but insignificant

positive impact on ROA.<o:p></o:p>

Key Words: Liquidity,

Profitability, Banking Sector, Turkey.<o:p></o:p>

<o:p></o:p>

Atıf için künye

Öndeş, T., & Binte Osman, A. (2020). ASSESSING THE IMPACT OF LIQUIDITY ON PROFITABILITY: AN EVIDENCE FROM TURKISH BANKING SECTOR. IBAD Sosyal Bilimler Dergisi(7), 393–402. https://doi.org/10.21733/ibad.686734

BibTeX

@article{ondes2020-106470,
  author = {Öndeş, Turan and Binte Osman, Asfia},
  title = {ASSESSING THE IMPACT OF LIQUIDITY ON PROFITABILITY: AN EVIDENCE FROM TURKISH BANKING SECTOR},
  journal = {IBAD Sosyal Bilimler Dergisi},
  year = {2020},
  number = {7},
  pages = {393--402},
  issn = {2687-2811},
  doi = {10.21733/ibad.686734},
  url = {https://akademik.atauni.edu.tr/yayinlar/106470-assessing-the-impact-of-liquidity-on-profitability-an-evidence-from-turkish}
}