The factors affecting on profitability between conventional banks & islamic banks in Malaysia / Fatin Nur Shahira Kamal

Profitability is one of the most important objectives of financial management because the main aim is to maximize owner's wealth. Profitability related with the net profit of an organization in accordance of different variables. The objective of this paper is to make a comparison for the profit...

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Bibliographic Details
Main Author: Kamal, Fatin Nur Shahira
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/107020/1/107020.pdf
https://ir.uitm.edu.my/id/eprint/107020/
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Summary:Profitability is one of the most important objectives of financial management because the main aim is to maximize owner's wealth. Profitability related with the net profit of an organization in accordance of different variables. The objective of this paper is to make a comparison for the profitability of 10 banks, both Islamic banks and conventional banks for 2006 until 2015. This paper examined the effects of bank specific factors (liquidity ratios, capital ratio and asset quality) on profitability measured by Return on Assets (ROA). Profitability performance for both Islamic and conventional banks is the dependent variable while liquidity ratios, capital adequacy ratios and asset quality ratios are independent variables. From the Multiple Linear Regression model results, the variables will be identified to determine either Islamic banks or conventional banks show the better performance.