Determinants of Financial Performance in the Banking Sector: A Case Study of Listed Kuwaiti Banks

Asian Economic and Financial Review

article

Majed Alharthi¹ 

[1] Finance Department, College of Business, King Abdulaziz University

关键词: Kuwait;    Banks;    GMM;    Return on assets;    Return on equity;    COVID-19 pandemic.;   

DOI  :  10.55493/5002.v12i7.4553

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This study explores the determinants of the profitability of banks listed on the Kuwaiti stock exchange, Boursa Kuwait. This study also investigates the financial performance of the listed Kuwaiti banks during the COVID-19 pandemic. The aim of this study is to examine the correlation between profitability and the factors that determine profitability for 11 listed Kuwaiti banks from 2013 to 2020. Relevant data was statistically analyzed using the generalized method of moments (GMM) model. The empirical findings of this research indicate that deposit volume and oil prices positively impact the profitability of the Kuwaiti banking sector. Conversely, bank size, leverage, and capitalization had a significant negative impact on the earnings of the listed Kuwaiti banks. Based on the findings of this study, several policy recommendations are made that would grow the profits of the Kuwaiti banking sector and mitigate the effects of negative factors.

【 授权许可】

CC BY