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BARISHAL UNIVERSITY JOURNAL (PART-3) A JOURNAL OF BUSINESS STUDIES University of Barishal, Barishal 8200, Bangladesh Volume-6, Issue –1, June 2019 ISSN 2411- 247X Barishal University Journal (Part-3), Volume-6, Issue-1 (June 2019) ISSN 2411-247X Published By Editor-in-Chief Dean Faculty of Business Studies, University of Barishal, Barishal 8200, Bangladesh Editorial and Business Address Dean Faculty of Business Studies, University of Barishal, Barishal 8200, Bangladesh Price: Taka 200 US $ 5.00 Printed By A.com Traders. 119/20 (1st Floor) Gausul Azam Super Market Nilkhat, Dhaka 1205. Cell: 01719398694, 01746844868, 01771564049 E-mail: [email protected] ii Barishal University Journal (Part-3), Volume-6, Issue-1 (June 2019) ISSN 2411-247X BARISHAL UNIVERSITY JOURNAL (PART-3) ISSN 2411-247X Volume 6 Issue 1 June 2019 EDITORIAL BOARD Editor-in-Chief Dean Faculty of Business Studies, University of Barishal, Barishal 8200, Bangladesh Associate Editor Sujan Chandra Paul Assistant Professor and Chairman, Department of Accounting & Information Systems University of Barishal, Barishal 8200, Bangladesh Editorial Board Prof. Shibli Rubayat Ul Islam Chairman Dean Department of Finance and Banking Faculty of Business Studies University of Barishal University of Dhaka Barishal 8200, Bangladesh Dhaka 1000, Bangladesh Chairman Dr. Mojib Uddin Ahamed Department of Marketing Professor University of Barishal Department of Tourism and Hospitality Barishal 8200, Bangladesh Management Chairman University of Dhaka Department of Management Studies Dhaka 1000, Bangladesh University of Barishal Barishal 8200, Bangladesh Prof. M. Shah Newaj Ali Professor Chairman Department of Management Studies Department of Accounting and Information Systems University of Rajshahi University of Barishal Rajshahi, Bangladesh Barishal 8200, Bangladesh Dr. Mubina Khondkar Professor Department of Marketing University of Dhaka Dhaka 1000, Bangladesh Published by: Editor-in-Chief, Barishal University Journal Part (III), on Behalf of the Editorial Board. Printed by: A.com Traders.119/20 (1st Floor), Gausul Azam Super Market, Nilkhat, Dhaka - 1205. iii Barishal University Journal (Part-3), Volume-6, Issue-1 (June 2019) ISSN 2411-247X Massage from the Editor-in-Chief The Barishal University Journal of Business Studies (ISSN 2411-247X) is an academic journal that examines the synthesis of business, society, and economics. BUJBS is published semiannually and is available in electronic versions. Our expedited review process allows for a thorough analysis by expert peer-reviewers within a time line that is much more favorable than many other academic publications. The Barishal University Journal of Business Studies welcomes submissions that explore the social, educational and business aspects of human behavior as related to Bangladesh. Because The Barisal University Journal of Business Studies takes a broad and inclusive view of the study of both business and economics, this publication outlet is suitable for a wide variety of interests. Appropriate submissions could include general survey research, attitudinal measures, research in business academia practitioners are participants, investigations into broad business and economic issues, or any number of empirical approaches that fit within the general umbrella provided by the journal. Authors are invited to submit their work at any time throughout the year and should carefully review the submission criteria and requirements. The Barishal University Journal of Business Studies maintains rigorous peer-reviewed standards. If you have a submission that you believe meets our criteria, we encourage you to consider BUJBS as an outlet for your academic research. If you have questions regarding this journal or submission requirements, please feel free to review the author information sections of the web site or contact the editor directly at [email protected] With thanks, Editor in chief Barishal University Journal of Business Studies iv Barishal University Journal (Part-3), Volume-6, Issue-1 (June 2019) ISSN 2411-247X CONTENTS Name of the Author Title of the Article Page Papi Halder Determinants of the Profitability of the Commercial 1-22 Banks in Bangladesh Abdullah Al Masud Corporate Social Responsibility and its Impact on 23-52 Saima Afrin Liza Financial and Non-financial Performance of Ready- made Garments sector on Bangladesh: A proof of Barishal. Mallika Saha Earning Management in Banking Industry: Evidence 53-78 from Bangladesh Bankim Chandra Sarker Factors Affecting the Adoption of Online Free 79-102 Md. Aslam Uddin Classified Advertisements in Bangladesh Mohammad Zahedul Alam Rashed Mahmud Shakil The Development of Human Resource Competency by 103-128 Md. Alamgir Mollah Performing Human Resource Roles: The Perspective from Line Management Md. Mehedi Hassan Assessing Sustainability of Ecotourism in Bangladesh: 129-148 Md. Mahiuddin Sabbir A Study on Sundarbans. Sadia Afrin Jarin Surajit Kumar Mondal A Study on Graduate’s Perception on Factors that 149-174 Tanzia Rahman Influencing Career Choices on Ready Made Garments Ateef Rab Sector in Bangladesh. Sujan Chandra Paul Does Democracy Impact FDI? 175-204 Md Harun Or Rosid Md. Abir Hossain A Study on Tourist Shopping Preference and 205-228 Tazizur Rahman Expenditure Behaviors: A Case Study of Domestic Visitors in Kuakata, Bangladesh v Barishal University Journal (Part-3), Volume-6, Issue-1 (June 2019) ISSN 2411-247X vi Determinants of the Profitability of the Commercial Banks in Bangladesh Papi Halder* ABSTRACT The aim of this study is to find out the bank-specific determinants of the profitability of the commercial banks in Bangladesh based on sample data of 20 private commercial banks over the period of 2010-2017. Various econometric tools and pooled ordinary least square (OLS) method have been used to analyze descriptive statistics, correlations and regression among the independent variables (capital adequacy, asset quality, management efficiency, liquidity management, bank size and growth of total deposit) and dependent variables (return on asset (ROA), return on equity (ROE) and net interest margin (NIM)). The result reveals that management efficiency, liquidity management, bank size and growth of total deposits have significant positive effect on ROA, while capital adequacy has significant negative effect on ROA. In the model for ROE, management efficiency, bank size and growth of total deposits have significant positive effect while asset quality and capital adequacy have significant negative effect. The bank size has significant positive effect on NIM while asset quality has significant negative effect on NIM. So, there is a significant relationship between the profitability measures of ROA, ROE and NIM and the determinants of the profitability of the banks. The findings of this study will help the management of the banks measure the bank performance and take appropriate decisions accordingly. *Lecturer, Department of Finance and Banking, University of Barishal. Barishal University Journal (Part-3), Volume-6, Issue-1 (June 2019) ISSN 2411-247X 1. Introduction Commercial banks play a key role in properly guiding and maintaining the economic development of a country through the proper and effective utilization of financial resources. The economic development of any country depends much on the performance of the commercial banks and their ability to make profit from financial activities. They borrow funds from the surplus unit, extend loan to the deficit unit and make the funds available for the investors for better productive investment purposes— which ultimately leads to the development of the country’s economy. This, in turn, they encourage investment and mobilize capital. Therefore, banks need to be profitable to strengthen their financial ability and make contribution to the country’s economic development. The profitability is one of the main ways to determine the performance of the commercial banks. It is essential to evaluate the performance of the banks through profitability so that the depositors and investors as well as bank management can get information about how efficiently the banks use their assets, liabilities, revenues and expenses (Echekoba et.al, 2014). In Bangladesh, the commercial banks are a major part of the financial system. So, any failure of the commercial banks may directly and indirectly affect the country’s overall financial system. On the other hand, the strength of the financial system depends on the banks’ profitability which is associated with some factors. This study tried to identify these factors that affect the banks’ profitability. Bank performance or profitability is evaluated through financial ratios which are based on CAMEL and other bank-specific factors. CAMEL is an international bank rating system which was first introduced in 1979 and in Bangladesh; CAMEL became CAMELS with an addition of new component (sensitivity to market risk) in the year 2006. The CAMELS framework aims to categorize the key determinants of the financial performance of the commercial banks which are capital adequacy, asset quality, Management efficiency, earnings, liquidity and sensitivity to market risk. The five components of CAMELS have been used for evaluating the bank performance in Bangladesh. In this study, four ratios of CAMELS and two financial ratios have been considered as bank-specific factors to identify the bank-specific determinants of bank profitability. Different studies have been undertaken to evaluate the performance