The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023
This study examines the effect of banking liquidity on profitability in five commercial banks listed on the Iraq Stock Exchange over the period 2016–2023. Profitability is measured using Return on Assets (ROA) and Return on Equity (ROE), while liquidity indicators include the Current Ratio (CR), Lo...
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| Format: | Article |
| Language: | Arabic |
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University of Kufa, Faculty of Administration and Economics
2025-03-01
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| Series: | مجلة الغري للعلوم الاقتصادية والادارية |
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| Online Access: | https://journal.uokufa.edu.iq/index.php/ghjec/article/view/17908 |
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| author | Rondk Shahin Saifadin |
| author_facet | Rondk Shahin Saifadin |
| author_sort | Rondk Shahin Saifadin |
| collection | DOAJ |
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This study examines the effect of banking liquidity on profitability in five commercial banks listed on the Iraq Stock Exchange over the period 2016–2023. Profitability is measured using Return on Assets (ROA) and Return on Equity (ROE), while liquidity indicators include the Current Ratio (CR), Loan-to-Deposit Ratio (LDR), Deposit-to-Asset Ratio (DTA), and Cash Balance (CASH_BAL). The study employs a descriptive-analytical approach and utilizes panel data analysis through (EViews 10) software. Various statistical techniques are applied, including descriptive statistics, correlation analysis, and the Generalized Least Squares (GLS) model with Cross-Section SUR weights. The findings reveal that CR has a negative impact on both ROA and ROE, LDR positively affects profitability, while DTA and CASH_BAL exhibit a negative influence. Based on these findings, the study recommends enhancing liquidity management to balance financial stability and profitability, optimizing loan portfolios while mitigating credit risk, and ensuring efficient utilization of deposits in productive investments. The study highlights the critical role of effective liquidity management in enhancing the profitability of commercial banks, underscoring the need for well-structured financial strategies to achieve sustainable growth.
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| format | Article |
| id | doaj-art-acbdf1093d464d89a8ae6383317ae855 |
| institution | OA Journals |
| issn | 3006-1911 3006-192X |
| language | Arabic |
| publishDate | 2025-03-01 |
| publisher | University of Kufa, Faculty of Administration and Economics |
| record_format | Article |
| series | مجلة الغري للعلوم الاقتصادية والادارية |
| spelling | doaj-art-acbdf1093d464d89a8ae6383317ae8552025-08-20T02:09:01ZaraUniversity of Kufa, Faculty of Administration and Economicsمجلة الغري للعلوم الاقتصادية والادارية3006-19113006-192X2025-03-0121110.36325/ghjec.v21i1.17908. The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023Rondk Shahin Saifadin0Duhok University, College Of Administration and Economic This study examines the effect of banking liquidity on profitability in five commercial banks listed on the Iraq Stock Exchange over the period 2016–2023. Profitability is measured using Return on Assets (ROA) and Return on Equity (ROE), while liquidity indicators include the Current Ratio (CR), Loan-to-Deposit Ratio (LDR), Deposit-to-Asset Ratio (DTA), and Cash Balance (CASH_BAL). The study employs a descriptive-analytical approach and utilizes panel data analysis through (EViews 10) software. Various statistical techniques are applied, including descriptive statistics, correlation analysis, and the Generalized Least Squares (GLS) model with Cross-Section SUR weights. The findings reveal that CR has a negative impact on both ROA and ROE, LDR positively affects profitability, while DTA and CASH_BAL exhibit a negative influence. Based on these findings, the study recommends enhancing liquidity management to balance financial stability and profitability, optimizing loan portfolios while mitigating credit risk, and ensuring efficient utilization of deposits in productive investments. The study highlights the critical role of effective liquidity management in enhancing the profitability of commercial banks, underscoring the need for well-structured financial strategies to achieve sustainable growth. https://journal.uokufa.edu.iq/index.php/ghjec/article/view/17908Working Capital Management, Profitability, Return on Assets (ROA), Current Ratio, Net Interest Income, Net Income After Tax, Commercial Banks, Regression AnalysisIraq Stock Exchange Banking Sector |
| spellingShingle | Rondk Shahin Saifadin The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023 مجلة الغري للعلوم الاقتصادية والادارية Working Capital Management, Profitability, Return on Assets (ROA), Current Ratio, Net Interest Income, Net Income After Tax, Commercial Banks, Regression Analysis Iraq Stock Exchange Banking Sector |
| title | The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023 |
| title_full | The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023 |
| title_fullStr | The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023 |
| title_full_unstemmed | The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023 |
| title_short | The Effect of Liquidity on Profitability: An Analytical Study on a sample of Commercial Banks Listed on the Iraq Stock Exchange for the Period 2016-2023 |
| title_sort | effect of liquidity on profitability an analytical study on a sample of commercial banks listed on the iraq stock exchange for the period 2016 2023 |
| topic | Working Capital Management, Profitability, Return on Assets (ROA), Current Ratio, Net Interest Income, Net Income After Tax, Commercial Banks, Regression Analysis Iraq Stock Exchange Banking Sector |
| url | https://journal.uokufa.edu.iq/index.php/ghjec/article/view/17908 |
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