A Threshold Regression Study on the Impact of Capital Adequacy Ratio on the Profitability of ASEAN-5 Banks

The main objective of this research is to find out the threshold effect Asean-5 banks’ capital adequacy ratio (CAR) to its profitability which is measured by return on assets (ROA) and return on equity (ROE) by the threshold regression model. In order to obtain result with higher accuracy, a control...

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Bibliographic Details
Published inInternational Journal of Advanced Business Studies Vol. 2; no. 3; pp. 56 - 67
Main Authors Lim, Ming Jin, Tan, Kokkiang, Binti Darman, Hazlina, Saba, Amirreza
Format Journal Article
LanguageEnglish
Published 01.09.2023
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Summary:The main objective of this research is to find out the threshold effect Asean-5 banks’ capital adequacy ratio (CAR) to its profitability which is measured by return on assets (ROA) and return on equity (ROE) by the threshold regression model. In order to obtain result with higher accuracy, a controlled variable, bank size which is determined by the banks total assets, is added into the model.
ISSN:2940-2735
2940-2735
DOI:10.59857/ijabs.1406