In this paper, we attempt to answer the question of whether or not bank capital affects profitability and risk. The paper forms an unbalanced panel with 354 observations using both data of 35 banks over the period 2007-2018. Two-step GMM is used to estimate the impacts of bank capital on profitability and risk in order to eliminate endogeneity and serial correlation issues. As a proxy of bank capital, the bank equity ratio, and equity level are used. Return on assets (ROA), return on equities (ROE), and net interest margin (NIM) are used to measure bank profitability, whereas nonperforming loan ratio and loan loss reserve ratio are used to measure bank risk. Bank capital displays significant impacts on profitability, which is measured by ROA and ROE, whereas capital shows no impact on bank NIM. When the loan loss reserve ratio is considered as proxy of bank risk, bank capital does not affect bank risk. The equity ratio, the proxy of bank capital, displays significant negative impacts on risk, whereas the equity level, the other proxy of bank capital, shows positive impacts on bank risk.

Profit always be the top priority of banking operation over the years. Commercial banks maximize the net interest margin by charging more interests to the borrowers and offering lower interests to the depositors. Their aggressive lending strategies can sometimes result in credit risk, moral hazard and non-performing loans. Some studies found that non-performing loans have negative impact on the bank’s profitability; some argued otherwise. This paper aims at investigating the impact of non-performing loans on the ability to make profit of Vietnamese commercial banks in the period of 2008 to 2017 and draws a conclusion as well as recommendations to mitigate the risk.

Profit always be the top priority of banking operation over the years. Commercial banks maximize the net interest margin by charging more interests to the borrowers and offering lower interests to the depositors. Their aggressive lending strategies can sometimes result in credit risk, moral hazard and non-performing loans. Some studies found that non-performing loans have negative impact on the bank’s profitability; some argued otherwise. This paper aims at investigating the impact of non-performing loans on the ability to make profit of Vietnamese commercial banks in the period of 2008 to 2017 and draws a conclusion as well as recommendations to mitigate the risk.

This study purposes to discover the interactive relationship between credit growth and profitability and to examine factors that affect the credit growth and profitability of people's credit funds (PCFs). After regression analysis on a set of panel data from 2013 to 2018 on 24 selected PCFs, it appeared that deposit growth and loan-to-deposit ratio had positive relationships with credit growth, and capital adequacy ratio and profitability had negative relationships with credit growth of PCFs. The age of PCFs has a positive relationship with profitability, while the credit growth, debt-to-equity ratio, non-performing loan ratio, economic growth and inflation have negative relationships with profitability of PCFs. The study found the credit growth and profitability have relationships with each other in a contrary trend. Based on the findings the study proposes policy measures that could be implemented by the managers to increase PCFs’ credit growth rate and profitability.

This paper examines the relationship between capital structure and profitability of non-financial companies listed on Vietnam's stock market. The panel data is extracted from financial statements of 488 listed companies between 2013 and 2018. Capital structure discussed is represented by the ratios of short-term liabilities, long-term liabilities and total liabilities to total assets, and profitability is measured by Return on Equity (ROE), Return on Assets (ROA) and Earnings per share (EPS). Firm size, growth rate, liquidity, ratio of fixed assets to total assets are control variables in the study. The Generalized Least Square (GLS) is applied to different models, including ROE, ROA and EPS Model, and tests of autocorrelation, multicollinearity and heteroskedasticity are run to confirm the relationship between capital structure and business performance. The results show that the capital structure of Vietnamese listed non-financial companies is negatively related to their performance. Taking industrial product sectors as the preference sectors, the results show that pharmaceutical and medical, the consumer goods and the public utility industries had a higher relationship between capital structure and firm’s performance (via ROE, ROA, EPS) than industrial product sectors. These evidences are useful new insights to investors, business managers and governmental authorities.

Motivated by the agency theory and the need to examine the effect of separation of ownership and management, this study examines the determinants of profitability in different firm ownership structures and how different ownership structures impact profitability of listed firms between 2003 and 2013, using pooled annual data of 23 Ghanaian listed firms. Employing a number of static models (OLS, Random Effect and 3 Stage Least Squares), we find evidence that while profit determinants vary for listed firms given their ownership structures, ownership structures also affected profitability differently. Specifically, for listed firms, profitability was determined by capital intensity, liquidity, financial risk, age and GDP; for non-family owned listed firms, profitability was determined by capital intensity, liquidity, market share and age; for foreign owned firms, profitability was determined by capital intensity, liquidity, age and GDP; and for non-foreign ownership, profitability is determined by capital intensity, liquidity, financial risk, growth, age and GDP. When we examine the impact of ownership structure on profitability and find that family owned listed firms make 30% less profits compared to non-family owned ones, whilst foreign owned firms make 13% more profits than non-foreign owned ones. These findings confirm the agency theory which posits that separation of ownership and management, though may lead to agency problems, can positively affect profits. The study recommends that family owned listed firms should consider diluting ownership in order to grow more profits.

This paper presents an empirical study to determine the effects of different factors including present profit, depreciation, working capital, operating cash flow and other accruals on future earnings stability. The study selects the information of 124 selected firms from Tehran Stock Exchange over the period 2006-2012. Using two regression analysis, the study has determined that as the fluctuation of profit increases, the profitability increases too. In addition, the study has concluded that firms with minimum fluctuations preserve more stable profitability. Moreover, firms with higher fluctuation in profitability maintain more volatile profitability for the next consecutive period.

Cash flow ratios are generally prepared from cash flow statement as per AS-03. It is helpful for financial users including shareholders, management, accountants, auditors and investors to get the relevant information regarding its financial resources for a certain period. Currently cash flow ratios are randomly used instead of traditional ratios due to its wideness and acceptability. In credit rating and forecasting the failure of an organization, cash flow ratios are very much relevant. In this study, we considered different companies from different sectors. From the study, it is clear that the liquidity and solvency position of the companies are moderate whereas the companies maintained low profitability. The efficiency ratios and sufficiency ratios of the companies selected in this study provide us a new look of financial judgement. In our study, we selected three companies from FMCG and Pharmaceuticals sectors. We used the data for a period of 10 years from 2004 to 2013 financial years.

This paper presents an empirical investigation to study the effects of electronic banking devices such as automated telling machines (ATM), Point of sales (POS) and Pin Pad on profitability and market share in Iranian banking industry. The population of this study considers the information of 16 banks, five governmental and eleven private, over the period 2007-2012. Using two regression techniques, the study has detected that while Pin Pad may influence on return of assets positively, ATM and POS may not have any meaningful impact on profitability. Moreover, in our survey, none of technological facilities had a meaningful impact on market share but there was a positive and meaningful relationship between bank size and market share.

This paper presents an empirical investigation to study the effects of different factors influencing on profitability of shares of petrochemical industry. The study gathers the information of three firms whose stock prices were listed on Tehran Stock Exchange over the period 2006-2012. Using different regression analysis, the study has determined that while stock price, currency rate and material influence on profitability of these firms, energy price, liquidity and gold price had no impact on profitability in petrochemical industry.