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Identification of the Factors Affecting the Return Rates of the Banks Listed on the Warsaw Stock Exchange

In: Contemporary Trends and Challenges in Finance

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  • Ewa Majerowska

    (University of GdaƄsk)

Abstract

Banks constitute a specific sector of stock-exchange-listed companies. The main factors affecting their rates of return are financial indicators. The aim of this paper is to identify these factors. Using annual data from 1998 to 2018, an unbalanced panel was created, covering 13 banks listed on the Warsaw Stock Exchange. The model proposed has been estimated for selected financial indicators. Next, factor analysis was used, by the means of which the latent factors were calculated. The results of the research allowed identification of the impact the latent factors have on the rates of return and showed that the main indicators determining the rate-of-return level were the operating profit margin, the return on equity, the equity ratio and the share of the operating expenses in the income on core operations.

Suggested Citation

  • Ewa Majerowska, 2020. "Identification of the Factors Affecting the Return Rates of the Banks Listed on the Warsaw Stock Exchange," Springer Proceedings in Business and Economics, in: Krzysztof Jajuga & Hermann Locarek-Junge & Lucjan T. Orlowski & Karsten Staehr (ed.), Contemporary Trends and Challenges in Finance, pages 45-54, Springer.
  • Handle: RePEc:spr:prbchp:978-3-030-43078-8_4
    DOI: 10.1007/978-3-030-43078-8_4
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