Empirical analysis of Financial Risk on Bank’s Financial Performance: An Evidence from Turkish Banking Industry
Download| Volume 3 Issue 1 2022 | |
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| Author(s): |
Ali Raza
Ahsan-ul Haque Shaikh
Dr. Turgut Tursoy
Hashem Ali Almashaqbeh
Sujood Mohammad Alkhateeb
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| Abstract | This research is analytical it’s about finding out the impact of financial risk on a bank’s financial performance, this study aims to find the influence of foreign exchange risk, credit risk, interest rate risk, and liquidity risk on the financial performance of banking industry in Turkey, whereas performance measured by ROA and ROE, past literature suggests various theories that show the relationship in between financial risks and financial performance of banks risk management theory were adopted for this study. A conceptual model has been developed and eight hypotheses are formed and supported by the literature. The data was collected from financial and annual reports of eight banks in Turkey. The data analyzed by E-Views 12 version, E-Views is good to test the financial models, several statistical tests have been used to interpret the model, unit root test, co integration, OLS, residual test, stability test, model specification test, normality tests and in last GMM model has been used to reduce the heteroscedasticity and serial correlation problem, total eight hypotheses prepared for the study, GMM p-values considered for hypotheses. All hypotheses supported by this study and model is good and specified by Ramsey reset test. |
| Keywords | Foreign Exchange risk, ROA, ROE, Credit risk, Liquidity risk, interest rate risk. |
| Year | 2022 |
| Volume | 3 |
| Issue | 1 |
| Type | Research paper, manuscript, article |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | ILMA Journal of Social Sciences & Economics | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/ | ISSN no (E, Electronic) | 2790-5896 | ISSN no (P, Print) | 2709-2232 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ijsse.ilmauniversity.edu.pk/arc/Vol3/pdf/2.pdf | Page | - |