The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies
This study empirically examines the impact of economic freedom quality and global financial crisis on the banking sector profitability in the Arab region. The analysis is performed by employing system GMM estimation in panel data comprising of 14 Arab countries over the period 1985–2016. The study c...
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| Format: | Article |
| Language: | English |
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University of Warsaw
2019-01-01
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| Series: | Journal of Banking and Financial Economics |
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| Online Access: | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1049&context=jbfe |
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| author | Omar Ghazy Aziz Julie Knutsen |
| author_facet | Omar Ghazy Aziz Julie Knutsen |
| author_sort | Omar Ghazy Aziz |
| collection | DOAJ |
| description | This study empirically examines the impact of economic freedom quality and global financial crisis on the banking sector profitability in the Arab region. The analysis is performed by employing system GMM estimation in panel data comprising of 14 Arab countries over the period 1985–2016. The study constructed an economic freedom index based on the economic freedom indicators. The findings indicate that greater economic freedom has positively influenced the profitability of the Arab banking sector. The results also suggest that the more profitable banks are those that have lower operating expenses against asset and income, better capitalized, more diversified and concentrated at economies having growth in the GDP. Furthermore, the global financial crisis in 2008 negatively impacted the profits of Arab banks. |
| format | Article |
| id | doaj-art-18914891727c45be9259e7406cf123e8 |
| institution | Kabale University |
| issn | 2353-6845 |
| language | English |
| publishDate | 2019-01-01 |
| publisher | University of Warsaw |
| record_format | Article |
| series | Journal of Banking and Financial Economics |
| spelling | doaj-art-18914891727c45be9259e7406cf123e82025-01-02T23:16:32ZengUniversity of WarsawJournal of Banking and Financial Economics2353-68452019-01-01201919611010.7172/2353-6845.jbfe.2019.1.5The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab EconomiesOmar Ghazy Aziz0 Julie Knutsen1School of Business and Law, University of Central Queensland, Australia School of Business and Law, University of Central Queensland, Australia This study empirically examines the impact of economic freedom quality and global financial crisis on the banking sector profitability in the Arab region. The analysis is performed by employing system GMM estimation in panel data comprising of 14 Arab countries over the period 1985–2016. The study constructed an economic freedom index based on the economic freedom indicators. The findings indicate that greater economic freedom has positively influenced the profitability of the Arab banking sector. The results also suggest that the more profitable banks are those that have lower operating expenses against asset and income, better capitalized, more diversified and concentrated at economies having growth in the GDP. Furthermore, the global financial crisis in 2008 negatively impacted the profits of Arab banks.https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1049&context=jbfeprofitabilityeconomic freedomglobal financial crisisarab economies |
| spellingShingle | Omar Ghazy Aziz Julie Knutsen The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies Journal of Banking and Financial Economics profitability economic freedom global financial crisis arab economies |
| title | The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies |
| title_full | The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies |
| title_fullStr | The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies |
| title_full_unstemmed | The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies |
| title_short | The Banks Profitability and Economic Freedom Quality: Empirical Evidence from Arab Economies |
| title_sort | banks profitability and economic freedom quality empirical evidence from arab economies |
| topic | profitability economic freedom global financial crisis arab economies |
| url | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1049&context=jbfe |
| work_keys_str_mv | AT omarghazyaziz thebanksprofitabilityandeconomicfreedomqualityempiricalevidencefromarabeconomies AT julieknutsen thebanksprofitabilityandeconomicfreedomqualityempiricalevidencefromarabeconomies AT omarghazyaziz banksprofitabilityandeconomicfreedomqualityempiricalevidencefromarabeconomies AT julieknutsen banksprofitabilityandeconomicfreedomqualityempiricalevidencefromarabeconomies |