Publication Date
2021
Document Type
Dissertation/Thesis
First Advisor
Ryu, Duchwan
Degree Name
M.S. (Master of Science)
Legacy Department
Department of Statistics and Actuarial Science
Abstract
Existing empirical literature on the relationship between credit risk and bank’s profitability is replete with mixed results. This research investigates the probable effect of credit risk on banks’ profitability by examining the nature of the relationship between two measures of credit risk (Loss provisioning rate and Actual provisioning charge rate) and two measures ofprofitability (Return on assets and Return on Equity). The investigation is conducted using data on the Ghanaian banking industry. Various modeling techniques are used to fit the data, including frequentist beta regression and Bayesian beta regression models. The results across all models suggest negative linear relationship between actual impairment charge rate and profitability, and a curvilinear relationship between impairment allowance rate and profitability. The curvilinear relationship is contrary to the positive linear relationship suggested by previous studies.
Recommended Citation
Ekpe, Godwin Kwabla, "The Relevance of Credit Risk in the determination of Commercial Banks’ Profitability: Evidence From Ghana" (2021). Graduate Research Theses & Dissertations. 6998.
https://huskiecommons.lib.niu.edu/allgraduate-thesesdissertations/6998
Extent
91 pages
Language
eng
Publisher
Northern Illinois University
Rights Statement
In Copyright
Rights Statement 2
NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.
Media Type
Text
