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Investigating the Impact of Low Quality Assets on Accounting Profitability (Experimental Study of Iranian Banks)
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Naser Izadinia *    1, Davood Gholami Siahbomi1 , Rosita Moayedfar2 |
1- University of Isfahan, Isfahan, Iran.
2- University of Isfahan, Isfahan, Iran |
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Abstract: (3073 Views) |
| Most of the financing of companies and individuals is done by banks. The country's banks play an undeniable role in improving the economy and livelihood of the people. According to most economists and experts in the banking industry, increasing bank claims as a low quality asset, It has a negative impact on the performance of banks and consequently on the profitability of banks. In this regard, this article examines the impact of the four classes of bank receivables under the heading of current class, past maturity, delinquent and doubtful receivables on the income and expenses of the bank and their components. The statistical population of this study includes all banks in the country's banking network and the obtained sample consists of 21 banks. The research period was from 1390 to 1398 and the hypotheses were tested using multivariate regression model. The research results confirm part of the existing theoretical literature and the opinion of experts; Thus, the positive effect of the current class on total income and the doubtful income class on total cost is confirmed, but low-quality assets have an unexpected effect on profitability and its components. |
Article number: 5 |
| Keywords: Non-performing loans, Shared income, Facilities, Total cost, Banking industry. |
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Full-Text [PDF 534 kb]
(372 Downloads)
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Type of Study: Applicable |
Subject:
Special
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