Impact of Liquidity on Profitability of Commercial Banks in Pakistan: An Analysis on Banking Sector in Pakistan

Rizwan Ali Khan
Rizwan Ali Khan
Mutahhar Ali
Mutahhar Ali
Quaid-i-Azam University Quaid-i-Azam University

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Impact of Liquidity on Profitability of Commercial Banks in Pakistan: An Analysis on Banking Sector in Pakistan

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Abstract

This study aims at investigating the relationship between liquidity and profitability of commercial banks in Pakistan. The main objective of the study is to find the nature of relationship and the strength of relationship exist between the variables. Correlation and regression are used respectively to find the nature of the relationship and extent of relationship between dependent and independent variables. Secondary data was used for analysis which was extracted from the last five years (2008)(2009)(2010)(2011)(2012)(2013)(2014) annual accounts of Habib Bank Limited. After conducting correlation and regression analysis it was found that there as significant positive relationship between liquidity with profitability of the banks. Since, the data of the banking sector was used, hence the results cannot be generalized to other sectors.

References

8 Cites in Article
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  3. Velnampy (2013). Corporate Governance and Firm Performance: A Study of Sri Lankan Manufacturing Companies.
  4. Walt (2009). What is more important? Profitability or Liquidity of a Company?.
  5. T Velnampy (2005). A Study on Investment Apparaisal and Profitability.
  6. Qasim Saleem & Ramiz Ur Rehman (2011). Impacts of liquidity ratios on profitability.
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  8. Michael Zhang (2011). Firm‐level performance impact of IS support for product innovation.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Rizwan Ali Khan. 2016. \u201cImpact of Liquidity on Profitability of Commercial Banks in Pakistan: An Analysis on Banking Sector in Pakistan\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 16 (GJMBR Volume 16 Issue C1).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
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GJMBR-C Classification JEL Code: G21
Version of record

v1.2

Issue date
February 9, 2016

Language
en
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Impact of Liquidity on Profitability of Commercial Banks in Pakistan: An Analysis on Banking Sector in Pakistan

Rizwan Ali Khan
Rizwan Ali Khan <p>Quaid-i-Azam University</p>
Mutahhar Ali
Mutahhar Ali

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