ARTICLE
TITLE

The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks

SUMMARY

This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks.

 Articles related

Kais Tissaoui, Zied Ftiti, Chaker Aloui    

This study investigates commonality in liquidity in Tunisia, an order-driven, emerging stock market. We analyze the impact of information flow on the relationship between market liquidity and liquidity of securities, in addition to firm size and industry... see more


Majdi Karmani, Aymen Ajina, Rym Boussaada    

This study investigates the impact of corporate governance effectiveness on the market stock liquidity. It is innovative, since we study, on an order driven market, the global effect of corporate governance and the effect of specific governance sub-index... see more


Mei Zhang    

Internally generated goodwill comes from the intangibles not recognized in the financial statements. This paper examines the impact of internally generated goodwill on financial performance of firms. Data are collected from Compustat database for twenty ... see more


Roland J. Sparks, Nick Desai, Perumal Thirumurthy    

Foreign direct investment (FDI) is critical to the economic development of any nation regardless of its level of growth. There is a plethora of research on the determining factors of FDI, both economic and non-economic, but very little on the weighted in... see more


Kudakwashe J. Chipunza,Kerry McCullough    

AbstractMaximising firm value remains a key tenet of corporate managers. Firms with lower illiquidity and volatility attract lower risk premiums, and these are associated with a lower cost of capital and higher firm value. Internationalisation is one ave... see more