文章基本信息

标题：The Role of Financial Risk Management in Predicting Financial Performance: A Case Study of Commercial Banks in Pakistan
本地全文：下载
作者：AHMED, Zeeshan ; SHAKOOR, Zain ; KHAN, Mubashir Ali 等
期刊名称：Journal of Asian Finance, Economics and Business
印刷版ISSN：2288-4637
电子版ISSN：2288-4645
出版年度：2021
卷号：8
期号：5
页码：639-648
DOI：10.13106/jafeb.2021.vol8.no5.0639
语种：English
出版社：Korean Distribution Science Association
摘要：The study aims to examine the role of financial risk management in predicting the financial performance of commercial banks in Pakistan over the period of 2006-2017. For this purpose, risk management is measured through credit risk, interest rate risk, and liquidity risk, while financial performance is measured through ROA, ROE, and ROI. For this purpose, the dynamic panel model and two step GMM panel estimators are used to test the hypothesis empirically. The annual secondary data has been taken from the published financial reports of commercial banks of Pakistan. The results show that financial risk management significantly decreases the financial performance of commercial banks in Pakistan. Overall, the results are conclusive across the alternative measures of financial risk management in predicting the financial performance of the banking sector in Pakistan. The study suggested that managers should adopt risk management and risk hedging strategies to manage commercial banks' financial risks in Pakistan. They should hold extra cash while using the trade credit facilities. Previous studies mostly used a static model, but this study used a dynamic panel model. This study is among the first that focused on the various factors affecting the banks' performance in Pakistan.
关键词：Credit Risk;Interest Rate Risk;Liquidity Risk;Financial Performance