The determinants of profitability among publicly listed commercial banks in the ASEAN member states for the period 2011-2015

• Main Authors: Barrera, Paulo Ian L., Belarmino, Franchezka Bhea O., Racelis, Irene Rose P., Sto. Domingo, Paul Isaac M.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Bank profits > Southeast Asia; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6286
• Institution: De La Salle University

This thesis analyzed the determinants of commercial banks profitability in the ASEAN banking sector. Such research is significant due to the lack of research within the ASEAN region on banks profitability and the factors for such. Descriptive analysis revealed that internal bank-specific conditions, external bank-specific conditions, and macroeconomic conditions might have an effect on banking profitability, and such an effect, if significant, would be the alternative hypothesis, with no significant effects on profitability arising from internal bank-specific conditions, external bank-specific conditions, and macroeconomic conditions as the null hypothesis, looking into additional determinants such as market factors as well to extend on research from van Ommeren (2011). The empirical part of this thesis took into account, in particular, regulation and ownership issues, through the use of publicly-available financial information over a 5-year period (2011-2015) and system generalized method of moments regression statistical analysis. The findings showed that liquidity, capital structure, asset quality, and bank size were considered as the internal bank-specific determinants of the bank profitability. Also, the effective tax rate and real GDP growth were the only macroeconomic variables that have significant impact on the bank profitability. On the other hand, there was no evidence on the external bank-specific determinants identified in this paper that have an impact on such profitability.