Does liquidity risk affect the performance of banks? Evidence from Egypt | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Article 9, Volume 3, Issue 2, July 2022, Pages 255-290 PDF (768.47 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2022.229760 | ||
| Authors | ||
| محسن عبيد عبد الغفار يونس عزام1; نسرين المليح2 | ||
| 1قسم المحاسبة کلية التجارة جامعة المنوفية | ||
| 2کلية التجارة- جامعة المنوفية | ||
| Abstract | ||
| The aim of this study is to examine the effect of liquidity risk on performance measures (e.g., return on equity, return on assets, and earnings per share) of banks listed in Egyptian Stock Exchange throughout the period 2009-2019.Seven hypotheses have been tested depending on different measures of banks' liquidity and measures of performance. Published data of nine Egyptian banks for the study period is used to test the hypotheses. After running correlation analysis, results revealed that deposits to liabilities ratio is significantly associated with return on equity (ROE), cash to assets ratio is positively and significantly associated with return on assets (ROA), and liquid assets to deposits ratio is correlated with bank performance measures. The results of the regression analysis revealed that cash to assets ratio and capital strength ratio have positive and significant impact on the return on assets, deposits to liabilities ratio affects positively and significantly the return on equity, while cash to assets ratio affects positively and significantly earnings per share of banks listed in Egyptian Stock Exchange. | ||
| Keywords | ||
| Egyptian banks / Profitability measures/ Liquidity measures/ Liquidity risk/ Financial performance/ Shifting Theory | ||
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