The Impact of Credit Risk Management on Commercial Banks Performance in Democratic Republic of the Congo (Published)
The main objective of this study was to find the impact of credit risk management on the financial profitability of the Congo’s commercial banks. The specific objectives were to find the effects of CAR and NPLR considered as independent variables on the performance of commercial banks while the dependent variables were ROE and ROA. We used commercial banks in the Democratic Republic of the Congo as a study population, and as a sample the four largest banks from 2009 to 2016. Using a fixed effects model specification a panel Estimate Generalized Least Squares regression was done on the data using E views software. Adopting a 5% non- directional test of hypothesis, the study found a capital adequacy ratio has statistically significant effect on commercial banks performance in Democratic Republic of Congo. For the second objective which was to determine the relationship between non-performing loans ratio and performance of banks, the study also concluded that NPLR has statistically significant effect on commercial banks. But we have remarked that there is a negative relationship between NPLR and ROE and ROA; and there is a positive relationship between the car and ROE and ROA. The results of the study reveal that banks with high capital adequacy ratios can better advance more loans and absorb credit losses each time they face it, especially in the context of Congolese banks where the uncertainty of reimbursement is high and thus record a better profitability.
Keywords: CAR, Commercial Banks, Credit Risk Management, NPLR, Profitability, ROA, ROE
IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF CEMENT SECTOR IN PAKISTAN (Published)
The main objective of the study was to find whether financial ratios affect the performance of the companies in the special context of cement industry in Pakistan. This study empirically examines the relationship between working capital management and profitability by using data of 10 Pakistani cement companies listed on Karachi Stock Exchange. The study is based on secondary data collected from financial reports of the sample companies for a period of five years from 2009-2013. The data was analyzed using the techniques of correlation coefficient and multiple regression analysis. All the findings were tested at 0.01 and 0.05 level of significance. We found that the return on equity (ROE) is negatively correlated with the Cash Conversion Cycle (CCC), current ratio (CR), and inventory turnover in days (ITD). While ROE is positively correlated with the Gross Working Capital Turnover (GWCT), Quick Ratio (QR), Average Payment Period (APP), Size of firms (LNSALES), and Funds allocated by government in Public Sector Development Program (LNPSDP). The relationship of Current Ratio is insignificant with ROE, but the relationship is not conclusive.