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A Detailed Analysis Of The Profitability Of Chinese Banks From 2016 To 2019

Author

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  • CHIRIAC Andreea Ioana

    (Economic Cybernetics and Statistics Doctoral School, The Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

Although, there is no generally definition for the term “Emerging Markets†, there are two representative features for emerging countries. First, these markets are characterized by rapid growth which is usually expressed in terms of income levels and population. The term of emerging economies refers to nations with social and business activity in the process of fast growth and industrialization. Emerging markets countries are assumed to play a decisive role in international trade and finance as well as to contribute significantly to the global economic growth. Entering an emerging market is not easy. Opportunities in the emerging markets come with their own set of challenges. Doing business in Emerging Markets reflects the challenges and opportunities facing international businesses and professionals when operating in emerging markets. There is intense competition among emerging countries to capture their share of the global economy. Emerging markets are commonly considered relatively riskier than developed markets as they carry supplementary political, economical and currency risks. As a result, these markets could be good investments for diversification purposes. These economies are growing fast, so the information that is defining them is easily outdated as their structure is quickly evolving. My research contains a theoretical introduction, literature review and also applied statistics on a dataset. In this paper I apply linear regression using IBM SPSS Statistics in order to measure the profitability for 51 banks from China during the period 2016 to 2019. The purpose of my research paper is to analyze the profitability of Chinese banks using two important profitability indicators: Return on Assets and Net Profit Margin. ANOVA is used to verify if the regression model is a good fit for the data. Also, I present descriptive statistics that show a general overview for the variables. The variables that are in the center of analysis are Return of Assets and Net profit Margin. For a more detailed analysis, Pearson Correlation was performed in order to verify the association between the variables that are in the interest of my research paper.

Suggested Citation

  • CHIRIAC Andreea Ioana, 2020. "A Detailed Analysis Of The Profitability Of Chinese Banks From 2016 To 2019," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 55-63, December.
    • Handle: RePEc:ora:journl:v:1:y:2020:i:2:p:55-63
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    References listed on IDEAS

    as
    1. Arouri, Mohamed El Hedi & Boubaker, Sabri & Nguyen, Duc Khuong (ed.), 2013. "Emerging Markets and the Global Economy," Elsevier Monographs, Elsevier, edition 1, number 9780124115491.
    2. Bourke, Philip, 1989. "Concentration and other determinants of bank profitability in Europe, North America and Australia," Journal of Banking & Finance, Elsevier, vol. 13(1), pages 65-79, March.
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    More about this item

    Keywords

    bank profitability; regression; statistics; China;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

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