Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i have run a regression analysis. In which ROA (return on assets) , ROE(return on equity) and NIM (net interest margin) are my dependent variables

i have run a regression analysis. In which ROA (return on assets) , ROE(return on equity) and NIM (net interest margin) are my dependent variables for profitability and capital ratio (EBIT/Total asset) and Deposit ratio (Total deposits/Total assets) are my independent variables.

according to my results capital ratio and deposit ratio both have positive significant effect on ROE ratio and NIM

but my results for capital ratio and deposit ratio have insignificant effect on ROA

how can in interpret this. according to research deposit ratio should have a positive effect on ROA if it has significant effect on ROE and NIM

how can i explain this result

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Planning & Analysis And Performance Management

Authors: Jack Alexander

1st Edition

1119491487, 9781119491484

More Books

Students also viewed these Finance questions

Question

2. Be clear and descriptive about your own emotions.

Answered: 1 week ago