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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Published in | International Journal of Advanced Business Studies Vol. 2; no. 3; pp. 56 - 67 |
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Main Authors | , , , |
Format | Journal Article |
Language | English |
Published |
01.09.2023
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Online Access | Get full text |
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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. |
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ISSN: | 2940-2735 2940-2735 |
DOI: | 10.59857/ijabs.1406 |