Financial Ratios Affecting Performance Of Participating Banking

Abstract

The aim of this study is to identify financial ratios related with participating banking performance. For this purpose, an analysis is performed for the years between 2011-2015, by using data of Malayzia, Saudi Arabia, Katar, Kuwait, Iranian, United Arap Emirates and Turkey. Data Enveloped Analysis and Panel Data Analysis are used as methods. As collected funds, fixed assets, equity capital and personel removals are used for input variables, funds provided and the other active assets are used as output variables in the Data Enveloped Analysis. And also for the panel data analysis, effectiveness scores obtained from the Data Eneveloped Analysis are used as dependent variable and asset profitability ratio, equity profitability ratio, loan deposit ratio and dept ratio are used as independent variables. According to the results of performed panel data analysis, it is seen that while asset profitability ratio and debt ratio have positive relations, equity profitability ratio and loan deposit ratio have negative relations with the performance of participating banking.