publication . Article . 2013

Capital Adequacy, Cost Income Ratio and the Performance of Saudi Banks (2007-2011)

Ahmad Aref Almazari;
Open Access
  • Published: 01 Jan 2013 Journal: International Journal of Academic Research in Accounting, Finance and Management Sciences, volume 3, issue 4 October, pages 284-293
Abstract
This paper examines the relationship between Capital adequacy and profitability. Necessary data were gathered from the financial statements of nine Saudi banks listed in the stock exchange market over the period of 2007-2011. The results of analyzing the data based on the implementation of linear regression technique reveals that there is a meaningful relationship between capital adequacy, cost-income ratio and bank size with profitability. Profitability represented in this study by the return on assets and return on equity has a negative relationship with capital adequacy. It was also found that Saudi banks efficiency as measured by the cost-income ratio is neg...
Subjects
free text keywords: Capital Adequacy (CA), Cost Income Ratio (CIR), Return On Assets (ROA), Return On Equity (ROE), Debt to equity (DE)

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