This document analyzes the determinants of deposit money banks' investments in treasury bills in Nigeria from 1970-2009. It finds that five variables (treasury bill rate, total loans and advances, total deposit liabilities, average lending rate, average liquidity ratio) explain 97% of variations in banks' treasury bill investments. Total deposit liabilities have the greatest influence, while total loans and advances have the least. It recommends that banks improve deposit mobilization strategies and that regulatory authorities make treasury bill rates more attractive to banks.
1. The document discusses modern banking strategies for managing risk and selecting profitable investment portfolios. It addresses questions about optimal portfolio structure in variable interest rate environments, appropriate banking products, and successful risk management.
2. Banks can calculate expected returns on asset groups to inform investment decisions, though some may prefer lower risk assets even with similar expected returns. Duration matching of assets and liabilities can help mitigate interest rate risk.
3. Banks employ tools like gap analysis, repricing schedules, and derivatives to manage their exposure to interest rate movements and ensure accurate understanding of risks from their asset-liability mix. Portfolio structure and risk management techniques are crucial for banks' financial stability and performance.
A study on effect of liquidity management on profitability with select privat...Supriya Mondal
This document provides a literature review on 9 previous research papers related to the relationship between liquidity management and profitability in banks. The papers examined liquidity ratios like CDR, CRDR and IDR and profitability ratios like ROA, ROE and ROI in various public sector, private sector and cooperative banks in India over different time periods. Most of the studies found an inverse or negative relationship between liquidity and profitability, indicating that increased liquidity leads to decreased profits and vice versa. The papers also compared performance between public and private sector banks, with most finding that private banks had better efficiency and profitability.
Effect of Deposit Money Bank Failure on Economic Development of Nigeria, 2009...ijtsrd
This document discusses the effect of bank failure on Nigeria's economic development from 2009-2019. It begins by establishing that banks play a vital role in providing capital for investment and improving economic well-being, so their collapse can negatively impact economic development. The study uses data from the Nigeria Deposit Insurance Corporation and Central Bank of Nigeria to examine the relationship between bank failure factors like non-performing loans, capital adequacy ratios, and liquidity ratios on unemployment rates. The results found that bank failure Granger causes unemployment in Nigeria over the period studied. The study recommends that banks maintain adequate capital levels and collateral for loans to avoid failures that could undermine economic development.
This document discusses a study on the effect of capital structure on the profitability of conventional and Islamic banks in Pakistan. The study examines the relationship between capital structure factors like total liabilities to total assets, total equity to total assets, total liabilities to total equities, and bank size with profitability measures like return on equity and return on assets. Annual reports from 5 Islamic banks and 5 conventional banks between 2010-2014 are analyzed using statistical tools like correlation analysis and t-tests. The study aims to compare the capital structure and its impact on profitability between conventional and Islamic banks in Pakistan and help policymakers. Limitations and the thesis structure are also outlined.
This document discusses a study analyzing the financial performance of selected private sector banks in Bangladesh in light of capital levels. The study examines the impact of factors like total capital/assets, risk-weighted assets, core capital/assets, equity capital/assets, and cost income ratio on the banks' returns on assets and equity. Annual data from 2008-2012 for three banks was used in multiple regression analysis. The study aims to determine if capital adequacy and cost income ratio influence bank profitability, and if Basel II requirements have been effective in reducing non-performing loans and bankruptcy risks in Bangladeshi banks. Previous literature suggests capital adequacy can impact lending, performance, and bankruptcy risk, but markets may better determine optimal capital levels.
Determinants of banks’ profitability in a developing economyAlexander Decker
This document investigates the factors that affect bank profitability in Tanzania. It uses a fixed effects regression model on panel data from 23 banks over the period of 2009 to 2013. The empirical results show that bank-specific factors, which are influenced by bank management decisions, significantly impact bank profitability in Tanzania. However, macroeconomic factors do not seem to significantly affect bank profitability. Therefore, bank profitability in Tanzania is mainly influenced by internal management decisions, while external macroeconomic conditions have an insignificant effect. The study aims to provide insight to policymakers and bank managers on how to improve long-term profitability.
Determinants of commercial banks profitability panel data evidence from pakistanAlexander Decker
This document summarizes a research study that investigated the determinants of commercial bank profitability in Pakistan from 2004-2010. The researchers used multiple regression analysis on a sample of 5 major commercial banks to determine the relationship between return on assets (the dependent variable) and various internal and external independent variables. The results indicated that internal factors like liquidity, efficiency, asset composition, deposit composition, and external factors like firm size had a significant impact on bank profitability. The study adds to the limited literature on factors influencing bank performance in Pakistan.
This document provides an overview of the empirical methodology used to measure the efficiency of local and foreign banks in Bangladesh. It analyzes 3 foreign banks and 3 local banks using annual report data to calculate 4 ratios: total equity to total assets, liquid assets to total assets, total non-earning assets to total assets, and cost efficiency. The document also reviews past literature on comparing the performance of domestic and foreign banks using various financial metrics and models like CAMEL, Data Envelopment Analysis, and analysis of variance. The empirical methodology section outlines the specific approach taken to build the report and measure bank efficiency using the selected ratios and publicly available annual report data from the sample banks.
1. The document discusses modern banking strategies for managing risk and selecting profitable investment portfolios. It addresses questions about optimal portfolio structure in variable interest rate environments, appropriate banking products, and successful risk management.
2. Banks can calculate expected returns on asset groups to inform investment decisions, though some may prefer lower risk assets even with similar expected returns. Duration matching of assets and liabilities can help mitigate interest rate risk.
3. Banks employ tools like gap analysis, repricing schedules, and derivatives to manage their exposure to interest rate movements and ensure accurate understanding of risks from their asset-liability mix. Portfolio structure and risk management techniques are crucial for banks' financial stability and performance.
A study on effect of liquidity management on profitability with select privat...Supriya Mondal
This document provides a literature review on 9 previous research papers related to the relationship between liquidity management and profitability in banks. The papers examined liquidity ratios like CDR, CRDR and IDR and profitability ratios like ROA, ROE and ROI in various public sector, private sector and cooperative banks in India over different time periods. Most of the studies found an inverse or negative relationship between liquidity and profitability, indicating that increased liquidity leads to decreased profits and vice versa. The papers also compared performance between public and private sector banks, with most finding that private banks had better efficiency and profitability.
Effect of Deposit Money Bank Failure on Economic Development of Nigeria, 2009...ijtsrd
This document discusses the effect of bank failure on Nigeria's economic development from 2009-2019. It begins by establishing that banks play a vital role in providing capital for investment and improving economic well-being, so their collapse can negatively impact economic development. The study uses data from the Nigeria Deposit Insurance Corporation and Central Bank of Nigeria to examine the relationship between bank failure factors like non-performing loans, capital adequacy ratios, and liquidity ratios on unemployment rates. The results found that bank failure Granger causes unemployment in Nigeria over the period studied. The study recommends that banks maintain adequate capital levels and collateral for loans to avoid failures that could undermine economic development.
This document discusses a study on the effect of capital structure on the profitability of conventional and Islamic banks in Pakistan. The study examines the relationship between capital structure factors like total liabilities to total assets, total equity to total assets, total liabilities to total equities, and bank size with profitability measures like return on equity and return on assets. Annual reports from 5 Islamic banks and 5 conventional banks between 2010-2014 are analyzed using statistical tools like correlation analysis and t-tests. The study aims to compare the capital structure and its impact on profitability between conventional and Islamic banks in Pakistan and help policymakers. Limitations and the thesis structure are also outlined.
This document discusses a study analyzing the financial performance of selected private sector banks in Bangladesh in light of capital levels. The study examines the impact of factors like total capital/assets, risk-weighted assets, core capital/assets, equity capital/assets, and cost income ratio on the banks' returns on assets and equity. Annual data from 2008-2012 for three banks was used in multiple regression analysis. The study aims to determine if capital adequacy and cost income ratio influence bank profitability, and if Basel II requirements have been effective in reducing non-performing loans and bankruptcy risks in Bangladeshi banks. Previous literature suggests capital adequacy can impact lending, performance, and bankruptcy risk, but markets may better determine optimal capital levels.
Determinants of banks’ profitability in a developing economyAlexander Decker
This document investigates the factors that affect bank profitability in Tanzania. It uses a fixed effects regression model on panel data from 23 banks over the period of 2009 to 2013. The empirical results show that bank-specific factors, which are influenced by bank management decisions, significantly impact bank profitability in Tanzania. However, macroeconomic factors do not seem to significantly affect bank profitability. Therefore, bank profitability in Tanzania is mainly influenced by internal management decisions, while external macroeconomic conditions have an insignificant effect. The study aims to provide insight to policymakers and bank managers on how to improve long-term profitability.
Determinants of commercial banks profitability panel data evidence from pakistanAlexander Decker
This document summarizes a research study that investigated the determinants of commercial bank profitability in Pakistan from 2004-2010. The researchers used multiple regression analysis on a sample of 5 major commercial banks to determine the relationship between return on assets (the dependent variable) and various internal and external independent variables. The results indicated that internal factors like liquidity, efficiency, asset composition, deposit composition, and external factors like firm size had a significant impact on bank profitability. The study adds to the limited literature on factors influencing bank performance in Pakistan.
This document provides an overview of the empirical methodology used to measure the efficiency of local and foreign banks in Bangladesh. It analyzes 3 foreign banks and 3 local banks using annual report data to calculate 4 ratios: total equity to total assets, liquid assets to total assets, total non-earning assets to total assets, and cost efficiency. The document also reviews past literature on comparing the performance of domestic and foreign banks using various financial metrics and models like CAMEL, Data Envelopment Analysis, and analysis of variance. The empirical methodology section outlines the specific approach taken to build the report and measure bank efficiency using the selected ratios and publicly available annual report data from the sample banks.
This document is a project report submitted by Shelly Jumba to Punjab Technical University in partial fulfillment of an MBA degree. It discusses a project on capital markets. The report includes a guide certificate, declaration, acknowledgements, preface, and index. Shelly Jumba conducted research on capital markets under the supervision of lecturer Shivani Jagneja.
11.liquidity management and commercial banks profitability in nigeriaAlexander Decker
This document summarizes a research study examining the relationship between liquidity management and commercial banks' profitability in Nigeria. The study aims to determine how effective liquidity management impacts profitability in commercial banks and how banks can enhance both their liquidity and profitability positions. The study applies quantitative research methods including analyzing questionnaire responses and financial reports from sampled banks. Findings indicate a significant relationship between liquidity and profitability, meaning profitability is significantly influenced by liquidity levels and vice versa. The study concludes that maintaining efficient liquidity management is important for banks' success and survival, as both illiquidity and excess liquidity can erode profitability. Recommendations include encouraging flexible interest rates and alternative liquidity measures to boost
A scenario of inter bank call money arrangement and its affiliation with twof...Alexander Decker
This academic article analyzes the inter-bank call money arrangement and its relationship to variables like bank credit and excess liquidity in Bangladesh. It finds that excess liquidity and bank credit are positively correlated with call money transactions based on regression analysis of historical data. The study also examines trends in Bangladesh's banking industry from 1975 to 2011, regulations around statutory liquidity requirements, and investment and borrowing levels in the call money market from 2009 to 2010.
Paper gives an explanation on how money is created in the modern economy ;through extension of credit in comparison with the traditional money creation process which relies on deposits to create money. It bases on three theories of banking ;the theory of financial intermediation ;fractional reserve theory as well as the the theory of credit creation ,giving an empirical analysis on which theory truly explains money creation in todays economy.
This document analyzes the liquidity position of two Bangladeshi banks, Southeast Bank Ltd. and AB Bank Ltd., from 2011-2015 using various financial ratios. For Southeast Bank, asset-based liquidity indicators were mostly stable with some ups and downs, while liability-based indicators significantly varied over time. Core deposit ratios declined for Southeast Bank from 2011-2015. For AB Bank, asset-based liquidity positions were relatively stable from 2011-2015, though performance was slightly worse in 2015. Overall, the analysis found that Southeast Bank's liquidity position was generally satisfactory, while AB Bank was lagging behind due to more conservative banking practices.
This document provides an overview of the Indian stock market and investment avenues available. It discusses the history and development of stock exchanges in India, particularly the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It also outlines the regulatory framework for capital markets in India, including key governing agencies and regulations. Finally, it describes various trading techniques for the stock market like delivery, intraday, futures, forwards, and options trading as well as the parameters and essentials of making investment decisions.
Overpricing of IPOS in Bangladesh: Book building methodNazmul Hasan
This is an analytical study upon the stock exchanges of Bangladesh. Entitled "Overpricing of IPOS in Bangladesh: Book building method". It will help you to understand the context of the problem of Bangladeshi Share Market and Capital Stock Exchange.
Market trend analysis of national stock exchange of india Divya Jyoti Arya
DECLARATION
I, Divya Jyoti Arya, Student of BBA III year(Finance) Batch 2008-2011 at G.H RAISONI COLLEGE OF COMMERCE & SCIENCE TECHNOLOGY, Nagpur, declare that the project work entitled “Market Trend Analysis of National Stock Exchange of India” was carried by me in the partial fulfillment of BBA program under the University of Nagpur.
This project was undertaken as a part of academic curriculum according to the university rules and norms and it has not commercial interest and motive. It is my original work. It is not submitted to any other organization for any other purpose.
The document discusses objectives and literature related to equity research. The main objectives of equity research are to study companies, analyze financials, look at quantitative and qualitative factors to make decisions about investing and provide suggestions to stockholders. Literature discusses best practices for equity research analysts, which include identifying critical factors, creating financial forecasts, communicating stock ideas, making recommendations, and setting price targets. Research aims to provide fundamental analysis to facilitate better investment decisions.
Impact of Financial Knowledge of Investors Investment Making Decisionsijtsrd
The objective of the study is to find the impact of financial knowledge of investors on their investment making decisions. Investors are said to rational but due to the human nature, biasness comes into picture while making investment decisions. Financial literacy and financial knowledge are taken as an imperative terms for regulating human nature of investors while making essential investment decisions The study was conducted on 150 investors in the city of PUNE. The data was collected through structured questionnaire and data so obtained was analyzed with the help of SPSS software. Sunil Deshpande | Dr. Sanjay Patankar "Impact of Financial Knowledge of Investors Investment Making Decisions" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42536.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42536/impact-of-financial-knowledge-of-investors-investment-making-decisions/sunil-deshpande
This document analyzes the financial performance of national and private banks in Indonesia from 2008 to 2017. It finds that both bank types saw increased profits over this period, with state banks seeing higher growth. It analyzes the banks' liquidity, credit risk, and market risk measures (LDR, CAR, NPL, NIM) and finds that higher LDR positively impacted profits for both banks, while CAR had no effect on profits. NPL negatively impacted state bank profits but positively impacted private bank profits. NIM also had no influence on profits for either bank type. The document provides context on these financial metrics and risk measures.
Hedge Equities Ltd is a leading financial services company in India that offers tailored financial products. It has expanded operations to the Middle East to serve the large non-resident Indian population. The project analyzes the risk-return relationship of five telecom companies in India to determine if the sector is suitable for investment. Financial ratios will be used to analyze the companies' performance and risk-return profiles. Recommendations will be provided on the best companies for investment based on the analysis.
Factors influencing the crash in the share market in dhaka stock exchangeAlexander Decker
This document discusses factors influencing the crash of the share market in the Dhaka Stock Exchange. It conducted a study interviewing 150 respondents to test 11 hypotheses related to investor behavior and factors contributing to the market crash. Most hypotheses were accepted, including that investors sought insider information and entered the market for high profits. Two hypotheses were rejected: that investors carefully calculated assets and invested at the right time. The literature review discusses capital market volatility, emerging markets, and the history of the Dhaka Stock Exchange.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world
Subjects/Areas We Cover
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Volume of Deposits, A determinant of Total Long-term Loans Advanced by Commer...iosrjce
Commercial banks have exponentially increased their total loans advanced over the period 2002-
2013. However commercial banks in Kenya have shown varying long term lending behavior. The main objective
of this study was to establish the effect of determinants of long term lending in the Kenyan banking industry, a
case of Bungoma County. This study was guided by the following specific objective; to determine the effect of
volume of deposit on total loan advanced, of selected commercial banks in Kenya. The target population
comprised 13 commercial banks in Bungoma County with a sample size of 52 respondents. From the findings,
for every unit increase in volume of deposits, a 10.9%, unit increase in total loans advanced is predicted. The
model hypothesizes that there is functional relationship between the dependent variable and the independent
variable. The study then recommends that commercial banks should focus on mobilizing more deposits as this
will enhance their lending performance.
The document provides background information and outlines the methodology for a study on analyzing the investment portfolios of commercial banks in Nepal. It discusses the importance of investment portfolios for banks and the economy. The study will analyze five years of data from five commercial banks to evaluate the relationship between investment amounts and variables like deposits, profits, loans, and bank size. Regression analysis will be used to analyze how investment levels correlate with these other factors. The goal is to help banks minimize risk and maximize returns in their investment strategies.
This document is a project report submitted by Shelly Jumba to Punjab Technical University in partial fulfillment of an MBA degree. It discusses a project on capital markets. The report includes a guide certificate, declaration, acknowledgements, preface, and index. Shelly Jumba conducted research on capital markets under the supervision of lecturer Shivani Jagneja.
11.liquidity management and commercial banks profitability in nigeriaAlexander Decker
This document summarizes a research study examining the relationship between liquidity management and commercial banks' profitability in Nigeria. The study aims to determine how effective liquidity management impacts profitability in commercial banks and how banks can enhance both their liquidity and profitability positions. The study applies quantitative research methods including analyzing questionnaire responses and financial reports from sampled banks. Findings indicate a significant relationship between liquidity and profitability, meaning profitability is significantly influenced by liquidity levels and vice versa. The study concludes that maintaining efficient liquidity management is important for banks' success and survival, as both illiquidity and excess liquidity can erode profitability. Recommendations include encouraging flexible interest rates and alternative liquidity measures to boost
A scenario of inter bank call money arrangement and its affiliation with twof...Alexander Decker
This academic article analyzes the inter-bank call money arrangement and its relationship to variables like bank credit and excess liquidity in Bangladesh. It finds that excess liquidity and bank credit are positively correlated with call money transactions based on regression analysis of historical data. The study also examines trends in Bangladesh's banking industry from 1975 to 2011, regulations around statutory liquidity requirements, and investment and borrowing levels in the call money market from 2009 to 2010.
Paper gives an explanation on how money is created in the modern economy ;through extension of credit in comparison with the traditional money creation process which relies on deposits to create money. It bases on three theories of banking ;the theory of financial intermediation ;fractional reserve theory as well as the the theory of credit creation ,giving an empirical analysis on which theory truly explains money creation in todays economy.
This document analyzes the liquidity position of two Bangladeshi banks, Southeast Bank Ltd. and AB Bank Ltd., from 2011-2015 using various financial ratios. For Southeast Bank, asset-based liquidity indicators were mostly stable with some ups and downs, while liability-based indicators significantly varied over time. Core deposit ratios declined for Southeast Bank from 2011-2015. For AB Bank, asset-based liquidity positions were relatively stable from 2011-2015, though performance was slightly worse in 2015. Overall, the analysis found that Southeast Bank's liquidity position was generally satisfactory, while AB Bank was lagging behind due to more conservative banking practices.
This document provides an overview of the Indian stock market and investment avenues available. It discusses the history and development of stock exchanges in India, particularly the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). It also outlines the regulatory framework for capital markets in India, including key governing agencies and regulations. Finally, it describes various trading techniques for the stock market like delivery, intraday, futures, forwards, and options trading as well as the parameters and essentials of making investment decisions.
Overpricing of IPOS in Bangladesh: Book building methodNazmul Hasan
This is an analytical study upon the stock exchanges of Bangladesh. Entitled "Overpricing of IPOS in Bangladesh: Book building method". It will help you to understand the context of the problem of Bangladeshi Share Market and Capital Stock Exchange.
Market trend analysis of national stock exchange of india Divya Jyoti Arya
DECLARATION
I, Divya Jyoti Arya, Student of BBA III year(Finance) Batch 2008-2011 at G.H RAISONI COLLEGE OF COMMERCE & SCIENCE TECHNOLOGY, Nagpur, declare that the project work entitled “Market Trend Analysis of National Stock Exchange of India” was carried by me in the partial fulfillment of BBA program under the University of Nagpur.
This project was undertaken as a part of academic curriculum according to the university rules and norms and it has not commercial interest and motive. It is my original work. It is not submitted to any other organization for any other purpose.
The document discusses objectives and literature related to equity research. The main objectives of equity research are to study companies, analyze financials, look at quantitative and qualitative factors to make decisions about investing and provide suggestions to stockholders. Literature discusses best practices for equity research analysts, which include identifying critical factors, creating financial forecasts, communicating stock ideas, making recommendations, and setting price targets. Research aims to provide fundamental analysis to facilitate better investment decisions.
Impact of Financial Knowledge of Investors Investment Making Decisionsijtsrd
The objective of the study is to find the impact of financial knowledge of investors on their investment making decisions. Investors are said to rational but due to the human nature, biasness comes into picture while making investment decisions. Financial literacy and financial knowledge are taken as an imperative terms for regulating human nature of investors while making essential investment decisions The study was conducted on 150 investors in the city of PUNE. The data was collected through structured questionnaire and data so obtained was analyzed with the help of SPSS software. Sunil Deshpande | Dr. Sanjay Patankar "Impact of Financial Knowledge of Investors Investment Making Decisions" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42536.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42536/impact-of-financial-knowledge-of-investors-investment-making-decisions/sunil-deshpande
This document analyzes the financial performance of national and private banks in Indonesia from 2008 to 2017. It finds that both bank types saw increased profits over this period, with state banks seeing higher growth. It analyzes the banks' liquidity, credit risk, and market risk measures (LDR, CAR, NPL, NIM) and finds that higher LDR positively impacted profits for both banks, while CAR had no effect on profits. NPL negatively impacted state bank profits but positively impacted private bank profits. NIM also had no influence on profits for either bank type. The document provides context on these financial metrics and risk measures.
Hedge Equities Ltd is a leading financial services company in India that offers tailored financial products. It has expanded operations to the Middle East to serve the large non-resident Indian population. The project analyzes the risk-return relationship of five telecom companies in India to determine if the sector is suitable for investment. Financial ratios will be used to analyze the companies' performance and risk-return profiles. Recommendations will be provided on the best companies for investment based on the analysis.
Factors influencing the crash in the share market in dhaka stock exchangeAlexander Decker
This document discusses factors influencing the crash of the share market in the Dhaka Stock Exchange. It conducted a study interviewing 150 respondents to test 11 hypotheses related to investor behavior and factors contributing to the market crash. Most hypotheses were accepted, including that investors sought insider information and entered the market for high profits. Two hypotheses were rejected: that investors carefully calculated assets and invested at the right time. The literature review discusses capital market volatility, emerging markets, and the history of the Dhaka Stock Exchange.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world
Subjects/Areas We Cover
Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Our Achievements
NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
GOLD MEDAL FOR RESEARCH ON DISABILITY (By Disabled’s Club of India)
NOMINATED FOR BEST MSME AWARDS 2017
5 STAR RATING ON GOOGLE
We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
Volume of Deposits, A determinant of Total Long-term Loans Advanced by Commer...iosrjce
Commercial banks have exponentially increased their total loans advanced over the period 2002-
2013. However commercial banks in Kenya have shown varying long term lending behavior. The main objective
of this study was to establish the effect of determinants of long term lending in the Kenyan banking industry, a
case of Bungoma County. This study was guided by the following specific objective; to determine the effect of
volume of deposit on total loan advanced, of selected commercial banks in Kenya. The target population
comprised 13 commercial banks in Bungoma County with a sample size of 52 respondents. From the findings,
for every unit increase in volume of deposits, a 10.9%, unit increase in total loans advanced is predicted. The
model hypothesizes that there is functional relationship between the dependent variable and the independent
variable. The study then recommends that commercial banks should focus on mobilizing more deposits as this
will enhance their lending performance.
The document provides background information and outlines the methodology for a study on analyzing the investment portfolios of commercial banks in Nepal. It discusses the importance of investment portfolios for banks and the economy. The study will analyze five years of data from five commercial banks to evaluate the relationship between investment amounts and variables like deposits, profits, loans, and bank size. Regression analysis will be used to analyze how investment levels correlate with these other factors. The goal is to help banks minimize risk and maximize returns in their investment strategies.
Liquidity management and commercial banks profitability in nigeriaAlexander Decker
This document summarizes a research study that examined the relationship between liquidity management and profitability in commercial banks in Nigeria. The study found that liquidity and profitability are significantly related, with each influencing the other. Effective liquidity management is important for banks' success and survival, as both insufficient and excessive liquidity can erode profitability. The study recommends that central banks maintain a flexible interest rate policy to help banks manage liquidity and profitability, and promote alternative payment methods to reduce banks' need to hold excess cash reserves.
11.liquidity management and commercial banks profitability in nigeriaAlexander Decker
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An analytical and theoretical investigation of the determinants of
1. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.21, 2012
An Analytical and Theoretical Investigation of The Determinants of
Deposit Money Bank’s Investment in Treasury Bills in Nigeria
(1970-2009)
Chris O Udoka, Ph.D, Roland Anyingang A
Department of Banking And Finance, Faculty Of Management Sciences University Of Calabar, Calabar-Nigeria,
PMB 1115, Calabar
E-mail udokaco@yahoo.com and anyingangrol@yahoo.com
Abstract
This study is an analytical and theoretical investigation of the determinants of deposit money bank’s investment in
treasury bills in Nigeria (1970-2009). One hypothesis was formulated to guide and direct the study. The hypothesis
formulated was stated thus, there is no significant linear relationship between changes in each of the explanatory
variables namely; treasury bill rate, total loan and advances, total liabilities, average lending rate, average liquidity
ratio and deposit money banks investments in treasury bills. Data for the study was collected from the CBN
statistical bulletin and annual report of various years up to 2009. Data were analyzed, tested using the ordinary least
square estimation procedures. Findings resulting from the test showed that the five variables used were able to
explain 97 per cent of the total systemic variations in bank’s investments in treasury bills. It was recommended that;
the regulatory authorities should make treasury bill rate attractive to deposit money banks in other to ensure that they
subscribe a significant percentage of the treasury bill issued by the central bank. Top management of banks should
develop adequate and effective strategies aimed at mobilizing adequate deposit for their operations.
Key words: Determinants of deposit money banks’ investments, Treasury bills.
Introduction
One of the basic economic problems confronting individuals, firms and even the government is how to allocate
scarce financial resources among competing ends, in order to maximize wealth (Akinlo, 2005). For profit
maximizing institutions like deposit money banks, this problem is basically that of portfolio management. This
challenge is more pronounced in these banks because their major source of funds is through customers’ deposits,
which is mostly short term in nature. They are also payable on demand in the case of demand and savings deposits or
after a very short notice in the case of time or fixed deposit (Udoka, 2007).
It should be remembered that the basic objectives of bank portfolio management are to provide the bank with
liquidity, solvency and income (profitability) (Mbat, 2009). Liquidity implies that a bank’s portfolio policies should
be designed so as to enable the bank to maintain adequate degree of liquidity, necessary to meet varied demand for
funds. Specifically, a bank should maintain highly liquid assets in sufficient amounts to meet depositors’ withdrawals
as well as legitimate loan requests. Solvency denotes that bank portfolio policies must be guided by prudence such
that lending and investment are undertaken only when there is almost a complete assurance that the principal and
interest will be repaid as they fall due (Albu, 2006). Thus, while the achievement of adequate liquidity level is a short
– run objective, the achievement of solvency is a long – run objective of bank management. The objective of
profitability implies that bank policies should be geared towards achieving sufficient income on bank portfolios, so
that operating costs can be met and banks can also continue as a going concern. In order for banks to achieve the
above dual objectives, they must achieve a certain pattern and distribution of their assets. Portfolio management is
therefore the combination of various classes of assets in order to achieve an optimum balance between liquidity and
solvency on the one hand, and income on the other.
Considering the dual role of bank’s investments namely, serving their liquidity and profitability needs, the basic
problem of this paper is to investigate empirically the factors that determine banks investments in treasury bills with
a view to offering some suggestions which might ensure effective management of their portfolios. In view of the
above scenario, the purpose of this study is three – fold, namely:
i. To determine the variables that affect deposit money bank’s investments in treasury bills.
ii. To ascertain the relative importance of the variables identified in (1) above.
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Vol 4, No.21, 2012
iii. To suggest possible strategies that banks could employ for the effective management of their treasury bills
investments.
This study is of significance as the recommendations based on the research findings would indeed be useful
to:
i. The management of deposit money banks in effective planning of their investments in treasury bills, this would
enable them satisfy not only the liquidity expectation of their depositors but also the profitability expectation
of their owners.
ii. The monetary authorities in their attempt to regulate the activities of the deposit money banks and particularly
in mopping up excess liquidity from the banking system.
iii. It is expected that other researchers who are interested in this area of research would key into it.
For simplicity and ease of comprehension, this paper is divided into five sections. Section one is the
introduction. It dwells on the allocation of financial resources into investible outlets for the purpose of
maximizing wealth. Section two delves into the literature review, enunciating recent position of scholars on
liquidity management. Section three is the methodology, in section four, data obtained are presented,
analysed and tested for informed judgment. Section five is the final section and dwells on emerging
findings arising from the discussion of the paper for managerial considerations.
2. Theoretical considerations /literature review
There is a large body of literature on bank liquidity management. The major ones are commercial loan theory,
otherwise referred to as the “traditional theory” or “real bills doctrine”. Which posits that commercial banks, because
of their funding base, should make only short – term self – liquidity productive loans (Mbat, 1995). This is followed
by the shiftability theory enunciated by moulton and Mitchell (1925). They aver that any single bank will be in a
liquid position only if it possesses assets, regardless of their nature, which can be shifted (sold) readily to others
when funds are needed. According to the theory, the problem of liquidity is not so much a problem of maturing loans,
but one of shifting assets to other banks for cash at satisfactory prices. The third theory, which is the anticipated
income theory, developed by Prochnow (1949), depends on loan portfolio as the source of liquidity. It holds that a
bank’s liquidity can be planned if scheduled loan payments are based on the future income of the borrower. It does
not, however, deny the applicability of the “real bills and “shiftability” theories. Rather ,it emphasizes the desirability
of relating loan repayments to income rather than relying heavily on collaterals. Also, it recognizes the influence the
maturity structure of the loan and investment portfolios have on bank liquidity(folawetvo,2002). The forth theory is
the liability management, developed in the 1960s. It posits that a bank can meet both short and long term liquidity
needs by bidding in the market for additional funds. According to woodworth (1971), this theory has been upheld by
most banks in developed countries. According to the liability management theory, a bank no longer needs to observe
traditional standards with respect to self – liquidating loans and liquidity reserve assets, since such funds can be
acquired in money market whenever a bank needs liquidity. In this way a bank can meet its liquidity needs by
creating additional liabilities (Roussakis, 1997). Thus, the present work is anchored on the liability management
paradigm.
Some studies aimed at investigating the behaviour of bank’s investment portfolios are prevalent. Such studies
are those of mash(1978), Nwankwo (1980) and Roussakis,(1977) specified and estimated four commercial bank
equations for Pakistan using annual data from 1955/56 -1969|70. The four equations related to the determinants of
(i) Supply of banks credit,
(ii) Demand for bank credit,
(iii) Bank’s borrowings from the central bank, and
(iv) Bank’s holding of government securities.
The fourth one provides the economic base for this study. in that estimation, the study found the determinants
of bank’s holdings of government securities to include the volume of deposits, weighted average interest rates on
government securities, excess liquid assets, government deficit financing and the volume of loans and
advances.(Ayida, 2007).
In his analysis of commercial banks assets composition, Nwankwo,(1980) observed that investments act as a
cushion between liquid assets and loans. Consequently, they can be made liquid to augment liquidity and thereby
increase loans and advances. Similarly, in periods of excess liquidity and poor or low effective demand for loans,
investments absorb excess liquidity. According to him, the volume of banks investments is a function of three factors
namely, their availability, the state of demand for loan and the state of liquidity.Roussakis (1977), examining the
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establishment of banks investment portfolio, argues that maximizing income must not be taken to imply purchasing
instruments that offer the highest yields. Rather, it means that the aim of a bank’s portfolio policy should be to obtain
the maximum income with the minimum exposure to risk. Thus, according to him in designing an investment
portfolio, the board of directors must take into account a number of basic considerations namely, the quality of the
securities to be bought, geographical and industrial diversification of risk, tax considerations , the general level of
interest rates at the time that securities are being purchased and maturities in the portfolio.(Hannoun,2008). In
addition the study observed that investment in securities may be used as collateral against the central bank advances
can be the subject of repurchase agreement with security dealers and can be pledged against public deposits in
compliance with such requirements.
3. Research methodology
This paper is on an empirical investigation of the determinants of deposit money bank’s investment in
treasury bills in Nigeria. Secondary data were obtained from the Central Bank of Nigeria (CBN) statistical bulletin
(1970-2009), CBN annual report and statement of accounts from various years up to 2009 and the CBN, Nigeria’s
major economic, financial and banking indicators of various years. The data would be analyzed, tested and
interpreted in order to facilitate a valid conclusion on the determinants of deposit money banks investment in
treasury bills in Nigeria. The major statistical tool used in the study is the multiple regression statistical technique.
The model formulated for the study is given by
TBI=α0 + α1TRR + α2TLA + α3TDL + α4 ARL + α5ALO + µ
Where
LTBI = total value of deposit money banks in treasury bills (N, Million)
TBR= Treasury bill rate
LTLA = Bank Total loan and advances (N, Million)
TDL = bank total deposit liabilities ((N, Million)
ALR = Bank average lending rate (percent)
LALQ = Bank average liquidity ratio (percent)
µ = Error (disturbance) term which is incorporated in the model to capture the influence of
omitted explanatory variable of the quantitative factor which could not be measured statistically
α0 = constant or the intercept
α0 – α5 = equation parameters
The study tested the hypothesis that:
H0 : There is no significant linear relationship between changes in each of the explanatory variables namely; treasury
bill rate, total loan and advances, total liabilities, average lending rate, average liquidity ratio and deposit money
banks investments in treasury bills.
H1 : There is a significant linear relationship between changes in each of the explanatory variables namely; treasury
bill rate, total loan and advances, total liabilities, average lending rate, average liquidity ratio and deposit money
banks investments in treasury bills.
4. Data analysis
The results of the empirical test on the determinants of deposit money bank’s investment in treasury bills in Nigeria,
1970-200, based on multiple least squares (MLS) estimate procedure are presented in Table 1
The R2 value of 0.97 in Table 2 indicates that about 97 per cent changes in the dependent variable total value of
deposit money banks in treasury bills is caused by changes in the explanatory variables namely treasury bill
rate, total loan and advances, total liabilities, average lending rate, average liquidity ratio and deposit money banks
investments in treasury bills. This implies that only 3 per cent changes in the dependent variable is caused by others
variables not found in the equation but measured by the error term.
The Adjusted R2 value of 0.97 means that the model is about 97 per cent goodness fit. The F-value of
284.47 which is significant at 0.05 alpha level of significant means that there exist a significant relationship between
the dependent variable of total value of deposit money banks in treasury bills is caused by changes in the
explanatory variables namely treasury bill rate, total loan and advances, total liabilities, average lending rate,
average liquidity ratio and deposit money banks investments in treasury bills.
The estimated coefficient for Treasury bill rate (TBR), bank total deposit liabilities TDL, and Bank average
liquidity ratio (ALQ) are positive, indicating that increase in these variables will certainly leads to increase in total
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ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.21, 2012
value of deposit money banks in treasury bills (TBI). This result is in order with economic a priori condition. The
results are all statistically significant at 0.05 level of significance.
The estimated coefficient for bank average lending rate (ALR) is negative, indicating that increase in the
lending rate will certainly leads to a decrease in the total value of deposit money banks in treasury bills (TBI). This
result is in line with economic expectations. The result is statistically significant at 5 per cent level of significance.
5. Summary of findings
All our explanatory variables namely, treasury bills rate, total loans and advances, total deposit liabilities, average
lending rate, average liquidity ratio were individually and collectively found to significantly influence banks
investments in treasury bills.
We also observed that the five variables stated above were able to explain 97 per cent of the total systemic
variations in banks investments in treasury bills. This implies that only 3 per cent of the systemic variations was
explained by factors omitted from our model. This finding underscores the importance of these variables in bank
portfolio management and the need for top management banks and the monetary authorities to develop adequate and
effective strategies in managing them.
Moreover, the study found that the five explanatory variables were not of equal importance in explaining
the observed variations in banks investments in treasury bills. The variations were ranked in descending order of
their importance as follows, total deposit liabilities, treasury bills rates, average lending rates, average liquidity ratios
and total loans and advances. Again, this gives a pointer to both the regulatory authorities and top management of
banks on which factors to focus their search lights on, in an attempt for the former to regulate the industry or the
latter to manage bank portfolio effectively.
Conclusion
This study attempted an empirical determination of the variables that affect banks investments in treasury bills
as well as their relative importance. Using the ordinary least squares method, it was found that all the explanatory
variables, namely, treasury bills rates, total loans and advances, total deposit liabilities, average lending rates and
average liquidity ratios were individually and collectively significant in explaining variations in banks investments in
treasury bills. In particular, it was observed that these variables as a group explain 97 per cent of the systemic
variations were found to exert unequal impact on banks investments in treasury bills. While total deposit liabilities
exerted the greatest influence, total loans and advances exerted the least influence. The treasury bills rates, average
rates and average liquidity ratio ranked second, third and fourth respectively.
On the basis of our major findings, we have offered some policy recommendations aimed at ensuring a more
effective management of banks deposit liabilities, loans, and advances, excess liquidity assets as well as a more
effective management of treasury bills rate by the central bank of Nigeria.
Recommendations
On the basis of the findings of this study the following policy recommendations:
i. Top management of banks should develop adequate and effective strategies aimed at mobilizing adequate
deposit for their operations. This can be accomplished by improving the quality of their services to
customers, adopting modern marketing technique in marketing their services and enlightening customers on
the range of accounts they operate and additional product or services they can offer. In addition, bank
employees should be encouraged to develop the right and positive attitude to work and banks should
enhance good bank – customer relationship. The recent practice in the industry whereby some banks try to
de –market others using various reasons such as distress or inability to meet consolidation dead line with a
view to attracting customers to themselves is unprofessional, unethical and hence completely uncalled for.
ii. The regulatory authorities should make treasury bill rate attractive to deposit money banks in other to ensure
that they subscribe a significant percentage of the treasury bill issued by the central bank. A situation
whereby the central bank issues the bills and buys back a significant proportion of it because of
unattractiveness of the rate is not healthy for the banking system. In particular, the central bank may not be
in a position to effectively regulate the banking system or mop up excess liquidity if the treasury bills rate is
not made attractive to the banks.
iii. The banks should ensure a more effective management of their loan portfolio. In particular, they should adopt
proper and effective loan appraisal and review procedures to minimize the incidence of bad and doubtful
debts. Funded projects should be adequately supervised and loan collection policies regularly reviewed.
45
5. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.21, 2012
These measures, apart from improving the quality of their loan portfolios may also improve their overall
liquidity position as the cash necessary to meet new loan requests could be obtained from the loan portfolio.
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Irwin
Table 1: Major variables used in the study
Year TBI TBR TLA TDL ALR ALQ
1970 786.1 4 351.3 624.7 7.5 93.9
1971 562.9 4 502 656.9 8.5 55.5
1972 455.8 4 619.5 793.8 8.5 58
1973 796.5 4 753.5 1013 8.5 47.3
1974 1430.3 4 938.1 1693.9 8.5 65.4
1975 1614.4 3.5 1537.3 2839.2 7.5 56.4
1976 1669.8 2.5 2122.9 4167.3 8 47.7
1977 2182.5 3 3074.6 5237.1 6 38.2
1978 2056.8 4 4109.7 5378.1 9 31.4
1979 3991.2 4 4624.4 6975 9.25 53.1
1980 6096 5 6779.4 10642.7 8.5 42.2
1981 5443.2 5 9316.7 11559.2 8.88 36.5
1982 7545.6 7 11303.8 13220.8 11 61.6
1983 15805.2 7 12285.5 15434 10.75 56.9
1984 24793.2 8.5 13189.2 18042.7 12.75 70.4
1985 29817.6 8.5 13973.2 20192.5 10.5 65.8
1986 22465.2 8.5 18475 21306.8 11.25 36.9
46
7. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.21, 2012
Table 2: Regression result of the linear relationship between changes in each of the explanatory variables namely;
treasury bill rate, total loan and advances, total liabilities, average lending rate, average liquidity ratio and deposit
money banks investments in treasury bills
Unstandardized Coefficients
Model B Std. Error T Sig.
1 (Constant) -.232 .206 -1.126 .268
TBR .088 .014 6.091 .000
LTDL .952 .035 26.877 .000
ALR -.063 .012 -5.267 .000
ALQ .010 .003 3.583 .001
R2 = 0.97
Adj R2 = 0.97
F –Statistics = 284.47
DW= 1.58
Dependent Variable: LTBI
48
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