Alamri, Ahmad Mohammad and Almazari, Ahmad Aref (2021) The Effect of Efficiency and Liquidity on the Profitability of the Saudi Commercial Banks. European Journal of Accounting, Auditing and Finance Research, 9 (8). pp. 1-13. ISSN 2053-4086(Print), 2053-4094(Online)
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Abstract
This study aimed at finding the effect of efficiency and liquidity on the profitability of the Saudi Commercial Banks. The profitability as a dependent variable is measured by return on assets, return on equity, operating profit Ratio, net interest margin ratio and net interest income ratio. Meanwhile, the efficiency and liquidity as independent variable are measured by Cost to income, Loans to total assets, total customer deposits to total assets and Loans to deposits. The study sample included 12 banks for the period 2014 to 2020. A set of statistical tools and financial indicators were used to test the validity of hypotheses. The results indicated that first, second and fifth hypothesis were rejected and third and fourth were accepted. The study recommend that Saudi commercial banks should focus more on liquidity and follow appropriate policies to gain more profitability. Finally, more studies and research work are required in the same field.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | assets, equity, profitability, liquidity, deposits, loans. |
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Depositing User: | Content Creator |
| Date Deposited: | 27 Mar 2022 13:08 |
| Last Modified: | 27 Mar 2022 13:08 |
| URI: | https://tudr.org/id/eprint/46 |
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