Please use this identifier to cite or link to this item: https://ptsldigital.ukm.my/jspui/handle/123456789/577646
Title: Key determinants of Japanese Commercial Banks performance
Authors: Ali Nasserinia (UPM)
M. Ariff (UPM)
Cheng Fan-Fah (UPM)
Keywords: Net interest margin
Credit risk
Liquidity
Capital
Managerial efficiency
Generalized moments method
Issue Date: Dec-2014
Description: This paper reports how six bank-specific characteristics and several market and macroeconomic factors influence Japan’s commercial bank performance in the recent years that cover global crises. The results suggest that net interest margin is an important performance variable. It is negatively correlated with credit risk, capital adequacy, while liquidity risk, asset quality, management efficiency have positive influences. The effects of income diversification and size are positive though not significant; so, is bank concentration positive for performance. GDP growth and money supply have negative and significant relationships on performance although their effects are marginal compared with bank-specific variables. The global crisis did have significant effect. To take into account profit persistence, GMM technique was applied and it produced moderate support for earnings persistence and there is good deal of competition. These are findings on Japanese banking.
News Source: Pertanika Journal of Social Sciences & Humanities
ISSN: 0128-7702
Volume: 22
Pages: 17-38
Publisher: Universiti Putra Malaysia Press
Appears in Collections:Journal Content Pages/ Kandungan Halaman Jurnal

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