Determinants of profitability in Lebanese commercial banks
International Journal of Development Research
Determinants of profitability in Lebanese commercial banks
Received 17th January, 2019; Received in revised form 03rd February, 2019; Accepted 02nd March, 2019; Published online 30th April, 2019
Copyright © 2019, Fadi A. Ghosn et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study derives an empirical model for studying micro and macro-economic factors that affect the profits of Lebanese commercial banks represented by return of assets (ROA).The sample covers thirteen banks spanning the period 2007-2016. The panel least square is taken as the estimation procedure. Results are based on the cross section fixed effects model. Regression results shows that the whole model is significant, where capital adequacy ratio and total loans to total assets ratio have high negative significance in determining the bank’s profitability. Deposits to total assets ratio, bank size represented by ln (assets), and interest rate appears to have a positive impact, and GDP appeared to have a negative impact on profitability.
