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229760

Does liquidity risk affect the performance of banks? Evidence from Egypt

Article

Last updated: 22 Jan 2023

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Tags

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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.

DOI

10.21608/cfdj.2022.229760

Keywords

Egyptian banks / Profitability measures/ Liquidity measures/ Liquidity risk/ Financial performance/ Shifting Theory

Authors

First Name

محسن

Last Name

عبيد عبد الغفار يونس عزام

MiddleName

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Affiliation

قسم المحاسبة کلية التجارة جامعة المنوفية

Email

azzam.mohsen@gmail.com

City

شبين الکوم

Orcid

-

First Name

نسرين

Last Name

المليح

MiddleName

-

Affiliation

کلية التجارة- جامعة المنوفية

Email

nesreen.mohamed@commerce.menofia.edu.eg

City

-

Orcid

-

Volume

3

Article Issue

2

Related Issue

32919

Issue Date

2022-07-01

Receive Date

2022-04-08

Publish Date

2022-07-01

Page Start

255

Page End

290

Print ISSN

2682-3403

Online ISSN

2682-4531

Link

https://cfdj.journals.ekb.eg/article_229760.html

Detail API

https://cfdj.journals.ekb.eg/service?article_code=229760

Order

9

Type

المقالة الأصلية

Type Code

1,242

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات والبحوث المالية والتجارية

Publication Link

https://cfdj.journals.ekb.eg/

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Details

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Article

Created At

22 Jan 2023