The impact of liquidity on profitability: An evidence from ASEAN financial institutions for the years 2010 to 2014
Date of Publication
2016
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Accountancy
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Adviser
Brixen S. Barredo
Defense Panel Member
Marilou S. Quibuyen
Carmelita C. Clerigo
Fe Violeta G. Baluran
Abstract/Summary
Financial institutions are considered as an indispensable segment in the economy. The term financial institutions is broad, and it is composed of entities performing specific functions, but they all share a common goal: to maximize profit for its shareholders and satisfy the needs of its customers. This paper presents the impact of liquidity on profitability of financial institutions on the ASEAN region. The study was conducted using ratio analysis, with current and cash ratio representing liquidity, and return on assets (ROA) and return on equity (ROE) representing profitability. Overall results showed that liquidity of ASEAN financial institutions, as a whole, has a significant impact on their profitability. To provide a more comprehensive analysis, the subject matter was dissected into specific subsectors and countries. Results for the subsectors, pension, other financial service activities (except insurance and pension funding), reinsurance, insurance, and monetary intermediation all showed that liquidity has a significant impact on profitability. However, results for the holding companies and the trust, funds, and similar entities subsectors both showed no significant impact. As for the 6 ASEAN countries covered by this study, Cambodia, Malaysia and Philippines all showed that liquidity has a significant on profitability, while Indonesia, Singapore, and Thailand resulted otherwise. The results of this study proved that liquidity should be given ample attention because it has an influence on the profitability of financial institution in the ASEAN region.
Abstract Format
html
Language
English
Format
Accession Number
TU23361
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
xv, 305 leaves : illustrations ; 28 cm. + 1 computer disc ; 4 3/4 in.
Keywords
Liquidity (Economics); Profit--Southeast Asia
Recommended Citation
Alcantara, M. F., Chavez, J. R., Garcia, C. B., & Ongsitco, C. P. (2016). The impact of liquidity on profitability: An evidence from ASEAN financial institutions for the years 2010 to 2014. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/8182