Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach

This study investigated the bank-specific and macroeconomic determinants of commercial banks’ liquidity in Ethiopia using secondary unbalanced panel data. The empirical analysis is carried out through the use of the generalized method of moments (GMM) estimation of dynamic panel data from 15 commerc...

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Autor principal:	Mekonnen Kumlachew Yitayaw
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	bank-specific commercial bank determinants bank liquidity macroeconomic ethiopia panel data approach Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/8bb1e3a228f0408f9c61d3b73b76a44c
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spelling	oai:doaj.org-article:8bb1e3a228f0408f9c61d3b73b76a44c2021-12-02T16:37:39ZFirm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach2331-197510.1080/23311975.2021.1956065https://doaj.org/article/8bb1e3a228f0408f9c61d3b73b76a44c2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1956065https://doaj.org/toc/2331-1975This study investigated the bank-specific and macroeconomic determinants of commercial banks’ liquidity in Ethiopia using secondary unbalanced panel data. The empirical analysis is carried out through the use of the generalized method of moments (GMM) estimation of dynamic panel data from 15 commercial banks from 2009–2019. The model result shows that lagged value of liquidity and deposit had a positive and statistically significant effect on commercial banks’ liquidity. On the other hand, capital adequacy, bank size, interest rate margin, and gross domestic product had a negative and statistically significant effect on the commercial bank’s liquidity. The study suggested that commercial banks in Ethiopia shall be more concerned about deposit mobilization to maintain a sufficient liquidity buffer and improve liquidity performance. Finally, the current study provides useful insights for bankers, analysts, regulators, investors, and other interested parties on the liquidity levels of Ethiopian commercial banks and their determinants and contributes to the scarce empirical evidence.Mekonnen Kumlachew YitayawTaylor & Francis Grouparticlebank-specificcommercial bankdeterminantsbank liquiditymacroeconomicethiopiapanel data approachBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	bank-specific commercial bank determinants bank liquidity macroeconomic ethiopia panel data approach Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	bank-specific commercial bank determinants bank liquidity macroeconomic ethiopia panel data approach Business HF5001-6182 Management. Industrial management HD28-70 Mekonnen Kumlachew Yitayaw Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
description	This study investigated the bank-specific and macroeconomic determinants of commercial banks’ liquidity in Ethiopia using secondary unbalanced panel data. The empirical analysis is carried out through the use of the generalized method of moments (GMM) estimation of dynamic panel data from 15 commercial banks from 2009–2019. The model result shows that lagged value of liquidity and deposit had a positive and statistically significant effect on commercial banks’ liquidity. On the other hand, capital adequacy, bank size, interest rate margin, and gross domestic product had a negative and statistically significant effect on the commercial bank’s liquidity. The study suggested that commercial banks in Ethiopia shall be more concerned about deposit mobilization to maintain a sufficient liquidity buffer and improve liquidity performance. Finally, the current study provides useful insights for bankers, analysts, regulators, investors, and other interested parties on the liquidity levels of Ethiopian commercial banks and their determinants and contributes to the scarce empirical evidence.
format	article
author	Mekonnen Kumlachew Yitayaw
author_facet	Mekonnen Kumlachew Yitayaw
author_sort	Mekonnen Kumlachew Yitayaw
title	Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
title_short	Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
title_full	Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
title_fullStr	Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
title_full_unstemmed	Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach
title_sort	firm-specific and macroeconomic determinants of commercial banks liquidity in ethiopia: panel data approach
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/8bb1e3a228f0408f9c61d3b73b76a44c
work_keys_str_mv	AT mekonnenkumlachewyitayaw firmspecificandmacroeconomicdeterminantsofcommercialbanksliquidityinethiopiapaneldataapproach
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Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach

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