Open Access Article Finance

Cash Management: A Key Driver of Performance for Conventional Banks in Pakistan

Authors

Ali Raza(1), Hani Na’el Al- Abdallat (2), Ahsan-ul-Haq Shaikh(3)

  1. Near East University image/svg+xml
  2. EDAMA Consulting Group, Jordon
  3. University of Sindh image/svg+xml

https://doi.org/10.36923/economa.v26i1.225

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Abstract

This research examines the critical influence of cash management on the financial efficacy of the conventional banking sector in Pakistan. This study represents the initial attempt to assess the influence of liquidity, debt ratio, and bank size on return on assets among five conventional banks in Pakistan. Information was obtained from audited annual reports from publicly traded banks that span from 2017 to 2021. The results indicate a significant positive correlation between liquidity and return on assets (ROA). Additionally, a significant negative association between debt ratio and ROA is examined. Furthermore, the study reveals that the size of banks exhibits a significant negative relationship with ROA. The study will provide valuable insights for financial managers, portfolio analysts, treasurers, and controllers on the practical implementation of contemporary cash management strategies.

Article information

Keywords
Conventional BanksDebt RatioLiquidity RatioFinancial Performance
Section
Articles
Issue
Vol. 26 No. 1 (2023)
Submitted
October 24, 2023
Published
November 22, 2023
Corresponding author
Ahsan-ul-Haq Shaikh
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How to Cite

Raza, A., Al- Abdallat , H. N., & Shaikh, A.- ul-H. (2023). Cash Management: A Key Driver of Performance for Conventional Banks in Pakistan. Innovation Economics Frontiers, 26(1), 20-27. https://doi.org/10.36923/economa.v26i1.225

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