Working Capital Management and Banks’ Performance: Evidence from India

• 발행기관: 한국유통과학회
• 저자명: Nabil Ahmed Mareai SENAN Suhaib ANAGREH Borhan Omar Ahmad AL-DALAIEN Fatehi ALMUGARI Amgad S.D. KHALED Eissa A. AL-HOMAIDI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.6, 747~758쪽, 전체 12쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.06.30

영문 초록

The purpose of this study is to examine how Indian commercial banks’ performance can be improved by determinants of working capital management. This study uses both static models Generalised Moments Method (GMM) and pooled, fixed, and random-effects. The study is based on balanced panel data for 98 Indian banks from 2008 to 2018. Performance is defined by two indicators, namely, return on assets (ROA) and return on equity (ROE). While, working capital cycle, profit after tax, assets size, financial leverage, quick ratio, current ratio, return on capital employed, return on total assets, net profit margin, and monetary policy rate are used as independent variables. The results showed that net profit margin, profit after tax, monetary policy, and working capital cycle are the most important working capital factors that influence Indian commercial banks’ performance measured by (ROA). Moreover, among the working capital, the results showed that current ratio, assets size, net profit margin ratio, and return on capital employees have significant positive effects on (ROE). The article’s novelty and importance come from its recommendation that policymakers in emerging markets should motivate and enable managers and stakeholders to pay more attention to working capital by raising consumer awareness and increasing knowledge disclosure.

목차

1. Introduction

2. Review of Literature

3. Research Methodology

4. Results

5. Conclusion

키워드

Banking Industry Working Capital Factors Banks’ Performance India