Analysis of Bank Investment Transactions Impact on Financial Assets Profitability

• Main Author: Viktoria S. Ambarchyan
• Format: Article
• Language: Russian
• Published: Academic Publishing House Researcher 2013-01-01
• Series: Evropejskij Issledovatelʹ
• Subjects: econometric model; financial assets; debt securities; equity shares; financial instruments; regression analysis; financial instruments profitability
• Online Access: http://www.erjournal.ru/pdf.html?n=1364725354.pdf

The article analyses bank securities purchase and placement to investment portfolios, aimed at the measurement of the degree of corporate and debt securities profitability impact on bank overall financial assets profitability. Using regressive analysis method, the author has developed the lineal econometric two-factor model of financial assets profitability dependence on the profitability of their components for five banking groups for the period of 10 years for each group. Statistical data and econometric model were tested to answer the adequacy criteria. Statistical significance of the model regressors due to Fisher criteria and statistical parameters βі due to Student criteria were measured. The influence of regressors on the dependent variable was determined as moderate, which is explained by the presence of certain factors of influence, not reflected in the model. Certain conclusions, concerning the significant influence of debt securities profitability on the overall financial assets profitability and slight influence of equity instruments profits on the degree of financial profits for the majority of banks were made