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Enhancing Internal Factors Unlocks Profit in Saudi Banks: Meningkatkan Faktor Internal Membuka Laba di Bank-bankĀ ArabĀ Saudi Daghir , Asmaa Abdul rida; Habeeb , Omar Mohammed; Saeed, Yasir Jihad
Indonesian Journal of Law and Economics Review Vol. 19 No. 3 (2024): August
Publisher : Universitas Muhammadiyah Sidoarjo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21070/ijler.v19i3.1153

Abstract

General Background: Banks' profitability is crucial for financial stability and economic growth. Specific Background: Internal factors such as capital adequacy, asset quality, and management effectiveness play a significant role in determining profitability. However, the impact of these variables on Saudi banks needs further exploration. Knowledge Gap: Existing research lacks a comprehensive analysis of how these internal variables affect the profitability of Saudi banks over a long period. Aims: This study examines the effect of changes in capital adequacy, asset quality, management effectiveness, and liquidity on the bank profit index, measured by the return on assets (ROA) at Saudi Fransi Bank from 2000 to 2022. Results: Quantitative analysis reveals that capital adequacy and asset quality have a significant positive impact on ROA, with 1% increases in each leading to 20% and 76% increases in ROA, respectively. In contrast, increased liquidity and management inefficiency negatively affect ROA, decreasing it by 33% and a significant margin, respectively. The internal variables account for about 96.4% of the variation in profitability. Novelty: This study offers a detailed long-term analysis of internal factors affecting bank profitability in Saudi Arabia. Implications: Enhancing asset quality and management effectiveness is crucial for improving profitability and reducing costs, benefiting both Banque Saudi Fransi and the broader banking sector. Highlights: Positive Impact: Capital adequacy and asset quality enhance bank profitability. Negative Impact: Higher liquidity and management inefficiency reduce profitability. High Explanatory Power: Internal variables explain 96.4% of profitability variation. Keywords: Bank Profitability, Return on Assets, Capital Adequacy, Asset Quality, Management Effectiveness
MeasurMeasuring The Size of The Black Economy in Iraq and Analyzing Its Economic and Social Impactsing the size of the black economy in Iraq and analyzing its economic and social impacts: A study analytical Abdulwahid, Oday Ibrahim; Ibrahim, Mustafa Ali; Saeed, Yasir Jihad
Indonesian Journal of Law and Economics Review Vol. 21 No. 1 (2026): February
Publisher : Universitas Muhammadiyah Sidoarjo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21070/ijler.v21i1.1423

Abstract

Background: The black economy undermines fiscal sustainability and policy effectiveness in developing nations. Specific Context: Iraq faces structural challenges including weak governance, political instability, and high unemployment, exacerbating informal economic activities. Gap: Existing Iraqi studies lack rigorous quantitative measurements using advanced models. Aim: This study measures Iraq's black economy (2004-2023) using the MIMIC model. Results: Corruption, tax burden, unemployment, and political crises significantly expand the informal economy, while improved governance reduces it. Novelty: First comprehensive application of MIMIC model with integrated causal-indicator framework for Iraq. Implications: Findings inform evidence-based policies for institutional reform, tax system simplification, and financial inclusion to mitigate informal economic activities.Highlight : MIMIC model identifies corruption, tax burden, unemployment, and political crises as primary drivers of Iraq's black economy (2004-2023). Black economy peaked during instability periods (2006-2007, 2014-2016, 2020); improved governance reduces informal activities. Governance reform, tax system simplification, and financial inclusion are key to integrating informal activities into formal economy. Keywords : Shadow Economy, MIMIC Model, Iraq, Governance, Tax Burden, Corruption