The Determinants of Bank Profitability Empirical Evidence from Vietnamese Commercial Banks in The Periods Of 2013 To 2018

Authors

  • Dan Ngoc Minh Nguyen International University,  HCM
  • Anh Vu International University, HCM

DOI:

https://doi.org/10.24297/jssr.v15i.8745

Keywords:

Vietnamese Commercial Banks, Profitability, Panel Data Analysis

Abstract

This research concentrates on the determinants of the profitability of the Vietnamese Commercial Banks. Both internal and external variables regarding the profitability of commercial bank sector will be focused in the analysis. Data over the period of 2013 to 2018 for 29 Vietnamese Commercial Banks[i] is obtained from via Stock Exchange or media. Fixed effect panel model are used to analyze the determinants of the profitability. By using this, we ensure for the effectiveness of the test result in terms of hypothesis along with size in order to get consistent results. The research is based on the scientific approach of quantitative methods to solve the problems posed, practical and effective service for the completion of the research purpose. The secondary data collected from the worldbank.org, vietdata.vn and annual reports (financial statement, balance sheet, etc.) of Vietnamese commercial banks in the 2013-2018 period to create asymmetric data tables will be processed on STATA software.

Downloads

Download data is not yet available.

Author Biography

Anh Vu, International University, HCM

Lecturer

References

Adeusi, S. O., Kolapo, F. T., & Aluko, A. O. (2014). Determinants of commercial banks’ profitability panel evidence from Nigeria.

Anbar, A., & Alper, D. (2011). Bank specific and macroeconomic determinants of commercial bank profitability: Empirical evidence from Turkey. Business and economics research journal, 2(2), 139-152.

Athanasoglou, P. P., Asimakopoulos, I. G., & Georgiou, E. A. (2005). The effect of merger and acquisition announcement on Greek bank stock returns. Economic Bulletin, (24), 27-44.

Athanasoglou, P., Delis, M., & Staikouras, C. (2006). Determinants of bank profitability in the South Eastern European region.

Barnes, M. L., & Lopez, J. A. (2006). Alternative measures of the Federal Reserve Banks’ cost of equity capital. Journal of Banking & Finance, 30(6), 1687-1711.

Bentum, W. (2012). The Determinants of Profitability of the Commercial Banks in Ghana during the Recent Years of Global Financial Crisis. Retrieved July, 15, 2014.

Bikker, J. A., & Hu, H. (2002). Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements. PSL Quarterly Review, 55(221).

Bordeleau, É., & Graham, C. (2010). The impact of liquidity on bank profitability (No. 2010, 38). Bank of Canada working paper.

Bourke, P. (1989). Concentration and other determinants of bank profitability in Europe, North America and Australia. Journal of Banking & Finance, 13(1), 65-79.

Brown, C., & Davis, K. (2009). Capital management in mutual financial institutions. Journal of Banking & Finance,

Dietrich, A., & Wanzenried, G. (2009, February). What determines the profitability of commercial banks? New evidence from Switzerland. In 12th conference of the Swiss society for financial market researches, Geneva (pp. 2-39).

Duca, J. V., & McLaughlin, M. M. (1990). Developments affecting the profitability of commercial banks. Fed. Res. Bull., 76, 477.

Flamini, V., Schumacher, M. L., & McDonald, M. C. A. (2009). The determinants of commercial bank profitability in Sub-Saharan Africa (No. 9-15). International Monetary Fund.

Goddard, J., Molyneux, P., & Wilson, J. O. (2004). The profitability of European banks: a cross‐sectional and dynamic panel analysis. The Manchester School, 72(3), 363-381.

Gul, S., Irshad, F., & Zaman, K. (2011). Factors Affecting Bank Profitability in Pakistan. Romanian Economic Journal, 14(39).

Gul, S., Irshad, F., & Zaman, K. (2011). Factors Affecting Bank Profitability in Pakistan. Romanian Economic Journal, 14(39).

Hu, J. L., Su, Y. Y., & Chen, C. P. (2008). Efficiency of nationwide banks in China. Journal of American Academy of Business, 13(2), 84-90.

Lai, M. M., Melvin, L., Balachandher, K. G., Nor, F. M., & Guru, K. (2002). An Examination of the Random Walk Model and Technical Trading Rules in the Malaysian Stock Market. Quarterly Journal of Business & Economics, 41.

Miller, S. M., & Noulas, A. G. (1997). Portfolio mix and large-bank profitability in the USA. Applied Economics, 29(4), 505-512.

Molyneux, P., & Thornton, J. (1992). Determinants of European bank profitability: A note. Journal of banking & Finance, 16(6), 1173-1178.

Naceur, S. B., & Goaied, M. (2001). The determinants of the Tunisian deposit banks' performance. Applied Financial Economics, 11(3), 317-319.

Nathan, A., & Neave, E. H. (1992). Operating efficiency of Canadian banks. Journal of Financial Services Research, 6(3), 265-276. 64

Onuonga, S. M. (2014). The Analysis of Profitability of Kenyas Top Six Commercial Banks: Internal Factor Analysis. American International Journal of Social Science, 3(5), 94-103.

Pasiouras, F., & Kosmidou, K. (2007). Factors influencing the profitability of domestic and foreign commercial banks in the European Union. Research in International Business and Finance, 21(2), 222-237.

Perry, P. (1992). Do banks gain or lose from inflation? Journal of Retail Banking, 14(2), 25-31.

San, O. T., & Heng, T. B. (2013). Factors affecting the profitability of Malaysian commercial banks. African Journal of Business Management, 7(8), 649-660.

Sufian, F. (2011). Profitability of the Korean banking sector: Panel evidence on bank-specific and macroeconomic determinants. Journal of economics and management, 7(1), 43-72.

Sufian, F., & Chong, R. R. (2008). Determinants of bank profitability in a developing economy: empirical evidence from the Philippines. Asian Academy of Management Journal of Accounting & Finance, 4(2).

Syafri, M. (2012, September). Factors affecting bank profitability in Indonesia. In The 2012 International Conference on Business and Management (Vol. 237, No. 9, pp. 7-8).

Trujillo‐Ponce, A. (2013). What determines the profitability of banks? Evidence from Spain. Accounting & Finance, 53(2), 561-586.

Vong, P. I., & Chan, H. S. (2009). Determinants of bank profitability in Macao. Macau Monetary Research Bulletin, 12(6), 93-113.

Vong, P. I., & Chan, H. S. (2009). Determinants of bank profitability in Macao. Macau Monetary Research Bulletin, 12(6), 93-113.

Wagner, W. (2007). The liquidity of bank assets and banking stability. Journal of Banking & Finance, 31(1), 121-139.

Website Source: https://data.worldbank.org/

Downloads

Published

2020-05-18

How to Cite

Nguyen, D. N. M., & Vu, A. (2020). The Determinants of Bank Profitability Empirical Evidence from Vietnamese Commercial Banks in The Periods Of 2013 To 2018. JOURNAL OF SOCIAL SCIENCE RESEARCH, 15, 176–184. https://doi.org/10.24297/jssr.v15i.8745

Issue

Section

Articles