Panel Data Analysis on the Impact of Industry and Macroeconomic Factors on Bank Performance: The Case of Ethiopia

European Journal of Business and Management, Vol.11, No.10, 2019

11 Pages Posted: 7 Jul 2020

Date Written: June 11, 2019

Abstract

The study has investigated one of the key research question: how do external factors relate to bank performance? It has set a panel regression model that comprised explanatory variables from the macroeconomic and the banking sector. It has run a regression model based on three dependent performance measures, two of which were related to profit and the rest was a price model. The selected variables have established a relationship with performance in most of the models. The result witnessed the fact that bank performance is determined by factors beyond the management control. These include the macroeconomic situations like economic growth and trade balance. In addition, industry related variables such as the rate of market growth and access to cost saving deposits have impact on performances. Therefore, the study has rejected the hypothesis that external factors (macroeconomic and sector) have no impact on performances.

Keywords: Panel data, Inustry, macroeconomic, Perfroamcne, Bank, Ethiopia

JEL Classification: G32, G21

Suggested Citation

Lelissa, Tesfaye, Panel Data Analysis on the Impact of Industry and Macroeconomic Factors on Bank Performance: The Case of Ethiopia (June 11, 2019). European Journal of Business and Management, Vol.11, No.10, 2019, Available at SSRN: https://ssrn.com/abstract=3625154

Tesfaye Lelissa (Contact Author)

University of South Africa ( email )

Pretoria
South Africa

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
29
Abstract Views
127
PlumX Metrics