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Does co-integration and causal relationship exist between the non-stationary variables for Chinese bank’s profitability? Empirical evidence

  • Mondher bellalah
  • Olivier Levyne
  • Omar Masood

    ()

    (THEMA, Universite de Cergy-Pontoise
    Institue Superieur de Commerce de Paris, ISC Paris
    Royal Business School, University of East London)

Registered author(s):

    This study aims to give the analysis of the determinants of banks’ profitability in the Kingdom of China over the period starting 2003. The paper investigates the co-integration and causal relationship between total assets (TA) and total equity (TE) of Saudi banks. The analysis employs Augmented Dickey Fuller (ADF) test, Johansen’s cointegration test, Granger causality test. Analyzing the cointegration and other tests on Saudi Arabian banking sector over the study period, the relationships between the two variables are examined. The empirical results have found strong evidence that the variables are co-integrated.

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    File URL: http://www.u-cergy.fr/thema/repec/2013-14.pdf
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    Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2013-14.

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    Date of creation: 2013
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    Handle: RePEc:ema:worpap:2013-14
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