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Growing Science » Management Science Letters » The impact of working capital and financial structure on profitability of islamic banking industry

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Management Science Letters
ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 2 Issue 7 pp. 2625-2630, 2012

The impact of working capital and financial structure on profitability of islamic banking industry Pages 2625-2630 Right click to download the paper Download PDF

Authors: Mohammad Khodaei Valahzaghard, Ali Taherinejhad

📋 Author Affiliations:
Khodaei Valahzaghard M., Taherinejhad A.
¹ N/A
doi 10.5267/j.msl.2012.06.045
1 Source: Scopus
Crossref 2 Source: CrossRef

🔑 Keywords: Financial leverage, Financial structure, Return of assets

Abstract: In this paper, we present an empirical survey on selected Iranian banks operating actively from 2005 to 2010. The proposed study considers the impacts of four important factors including degree of financial leverage, bank size, working capital and liquidity on return on asset as a primary source of measuring profitability of Iranian banking system. The survey uses Pearson correlation test along with simple and multi regression analysis to study the behavior of these four factors on profitability of banking system. Based on the results of this survey, a high level of working capital and financial leverage will result to lower profitability in Iranian private banks.

How to cite this paper
APA: Valahzaghard, M & Taherinejhad, A. (2012). The impact of working capital and financial structure on profitability of islamic banking industry. Management Science Letters, 2(7), 2625-2630.
Chicago/Turabian: Valahzaghard, M & Taherinejhad, A. 2012. "The impact of working capital and financial structure on profitability of islamic banking industry." Management Science Letters 2, no. 7 (2012): 2625-2630.
AMA: Valahzaghard, M & Taherinejhad, A. The impact of working capital and financial structure on profitability of islamic banking industry. Management Science Letters. 2012;2(7):2625-2630.

References
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Delis, M.D., Tran, K.C., Tsionas, E.G. (2012). Quantifying and explaining parameter heterogeneity in the capital regulation-bank risk nexus. Journal of Financial Stability, 8(2), 57-68.

Demiroglu, C., & James, C. (2011). The use of bank lines of credit in corporate liquidity management: A review of empirical evidence. Journal of Banking & Finance, 35(4), 775-782.

Fields, L.P., Fraser, D.R., & Subrahmanyam, A. (2012). Board quality and the cost of debt capital: The case of bank loans. Journal of Banking & Finance, 36(5), 1536-1547.

Loutskina, E. (2011). The role of securitization in bank liquidity and funding management. Journal of Financial Economics, 100(3), 663-684.

van den End, J.W., & Tabbae, T. (2012). When liquidity risk becomes a systemic issue: Empirical evidence of bank behaviour. Journal of Financial Stability, 8(2), 107-120.
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📚 Journal: Management Science Letters | 📅 Year: 2012 | 📖 Volume: 2 | 📄 Issue: 7 | 👁️ Views: 3190 | 📊 Crossref: 2

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