Assessing the Profitability of the Iranian Banking System's Non-Linear Relationship with Liquidity Risk

Mohammad Hossein Khadem Dezfouli, Ali Hasanzadeh, Mahshid Shahchera
2014 Kuwait Chapter of Arabian Journal of Business and Management Review  
In this paper we are trying to prove the existence of a U shape relationship between some of bank specific variables that can affect on liquidity risk and profitability ratios (ROE, ROA). The point is running such an issue is to evaluate the effectiveness of these bank specific variables on banks profitability in both short and long run. In order to fulfill this mission, variable's data are gathered for the period of 2005 to 2011, and then using generalized method of moments (GMM), the
more » ... hip between bank profitability ratios and independent variables are estimated. Our results prove existence of a U shape relation between the above mentioned variables.
doi:10.12816/0018344 fatcat:xgqnlyjwgfcb7csollxmnpulbi