Impact of Firm Size on Profitability: A Comparative Study of Islamic Bank and Commercial Bank in Pakistan

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Syed Atif Ali
Syed Atif Ali
σ
Dr. Zahiruddin Ghazali
Dr. Zahiruddin Ghazali
α COMSATS Institute of Information  Technology, Lahore COMSATS Institute of Information Technology, Lahore

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Impact of Firm Size on Profitability: A Comparative Study of Islamic Bank and Commercial Bank in Pakistan

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Abstract

This article shows the impact of banking size on the profitability of Commercial and Islamic Banks operating in the Pakistan for the period 2008-2012. In Pakistan Banking organizations provide fund for other organizational developments. This analysis is done in the context of firm size and profitability. Using data from 5 Commercial and 5 Islamic Banks, our observed study provides partial support to the hypothetical predictions. In study we use the measure the profitability of Commercial Bank and Islamic Bank in Pakistan like return on assets and firm size of all Banks like number of branches. The relationships between size and profitability measures are statistically show that Islamic Banks become more profitable with the respect of small size because there is no relation between Bank size and profitability. The regressions investigation that, there is optimistic association between Firm size and Profitability in Commercial Bank Ltd, but there is no relationship between firm size and profitability in Islamic Banks.

References

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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

Syed Atif Ali. 2018. \u201cImpact of Firm Size on Profitability: A Comparative Study of Islamic Bank and Commercial Bank in Pakistan\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 18 (GJMBR Volume 18 Issue C5): .

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Issue Cover
GJMBR Volume 18 Issue C5
Pg. 31- 35
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: G20
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v1.2

Issue date

August 6, 2018

Language
en
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This article shows the impact of banking size on the profitability of Commercial and Islamic Banks operating in the Pakistan for the period 2008-2012. In Pakistan Banking organizations provide fund for other organizational developments. This analysis is done in the context of firm size and profitability. Using data from 5 Commercial and 5 Islamic Banks, our observed study provides partial support to the hypothetical predictions. In study we use the measure the profitability of Commercial Bank and Islamic Bank in Pakistan like return on assets and firm size of all Banks like number of branches. The relationships between size and profitability measures are statistically show that Islamic Banks become more profitable with the respect of small size because there is no relation between Bank size and profitability. The regressions investigation that, there is optimistic association between Firm size and Profitability in Commercial Bank Ltd, but there is no relationship between firm size and profitability in Islamic Banks.

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Impact of Firm Size on Profitability: A Comparative Study of Islamic Bank and Commercial Bank in Pakistan

Syed Atif Ali
Syed Atif Ali
Dr. Zahiruddin Ghazali
Dr. Zahiruddin Ghazali

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