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Corporate Governance and Liquidity Risk of Industrial and Commercial Bank of China (ICBC)

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  • Sew, TianHuan

Abstract

In this paper, we are going to exam the relationship between the return on asset (ROA) with internal, external factors of the ICBC. Kupiec, P., & Lee, Y. (2012), stated that ROA is important statistic toward the profitability of banks. The data that we used is get from the annual reports of ICBC from the year of 2014 to 2018. The independent variables in this study which is internal and external factors are current ratio, credit risk, operating margin, CGI, GDP, interest rate, inflation, and also exchange rate, while the dependent variable is return on asset. Therefore, this study is to analyze the relationship between the internal and external factors of ICBC with return on asset. Data was analyzed by utilizing descriptive statistics, correlation, model of summary, ANOVA, and coefficient. In the analysis shows a significant relationship between return on assets and current ratio compare with other factors especially corporate governance index (CGI) and exchange rate.

Suggested Citation

  • Sew, TianHuan, 2019. "Corporate Governance and Liquidity Risk of Industrial and Commercial Bank of China (ICBC)," MPRA Paper 97249, University Library of Munich, Germany, revised 28 Nov 2019.
    • Handle: RePEc:pra:mprapa:97249
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    References listed on IDEAS

    as
    1. Kosmas Njanike, 2009. "The Impact of Effective Credit Risk Management on Bank Survival," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(2), pages 173-184.
    2. Imbierowicz, Björn & Rauch, Christian, 2014. "The relationship between liquidity risk and credit risk in banks," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 242-256.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Return on Asset; corporate governance; company performance; liquidity risk;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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