The symmetric and asymmetric relationship between the ratio of non-performing loans and the return on equity: Evidence from Borsa Istanbul

Autores

  • Mehmet Apan Sakarya University of Applied Sciences
  • Hüseyin Karamelikli Karabuk University, Faculty of Economics and Administrative Sciences, Department of Economics
  • Mehmet İslamoğlu Karabuk University, Faculty of Business, Department of Finance and Banking
  • Hakim Aziz Karabuk University, Faculty of Business, Department of Business Administration

DOI:

https://doi.org/10.5281/zenodo.14608886

Resumo

The ratio of non-performing loans is an important indicator that reveals banks' success in credit management. With the increase in this ratio, the profitability of banks is adversely affected. This study investigates the short and long-term asymmetric relationship between non-performing loans and the return on equity of banks enlisted on the Borsa Istanbul (BIST) using quarterly data from 2008Q1-2017Q4. We have formulated four different models for each bank with ARDL and NARDL methods to test the relationship between selected variables. Empirical results show a long-term asymmetric relationship between ROE and NPLs for most banks in BIST.

Biografias Autor

Mehmet Apan, Sakarya University of Applied Sciences

Sakarya University of Applied Sciences, Faculty of Applied Sciences, Department of Finance and Banking

Address : Sakarya University of Applied Sciences, Kaynarca Campus, Faculty of Applied Sciences, Fahrettin Azak Street, No:28/3, 54650 Kaynarca-Sakarya / TURKEY

Hüseyin Karamelikli, Karabuk University, Faculty of Economics and Administrative Sciences, Department of Economics

Karabuk University, Faculty of Economics and Administrative Sciences, Department of Economics

Address : Karabuk University, Demir-Celik Campus, Kardemir Building Entrance A, Faculty of Economics and Administrative Sciences, 3rd Floor, 78050 Karabuk / TURKEY

Mehmet İslamoğlu, Karabuk University, Faculty of Business, Department of Finance and Banking

Karabuk University, Faculty of Business, Department of Finance and Banking

Address : Karabuk University, Demir-Celik Campus, Kardemir Building Entrance A, Faculty of Business, 2nd Floor, 78050 Karabuk / TURKEY

Hakim Aziz, Karabuk University, Faculty of Business, Department of Business Administration

Karabuk University, Faculty of Business, Department of Business Administration

Address : Karabuk University, Demir-Celik Campus, Kardemir Building Entrance A,

Faculty of Business, 2nd Floor, 78050 Karabuk / TURKEY

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Publicado

2024-12-31

Como Citar

Apan, M., Karamelikli, H. ., İslamoğlu, M., & Aziz, H. (2024). The symmetric and asymmetric relationship between the ratio of non-performing loans and the return on equity: Evidence from Borsa Istanbul. International Journal of Contemporary Economics and Administrative Sciences, 14(2), 641–661. https://doi.org/10.5281/zenodo.14608886

Edição

Vol. 14 N.º 2 (2024): International Journal of Contemporary Economics and Administrative Sciences

Secção

Articles

Licença

Direitos de Autor (c) 2025 International Journal of Contemporary Economics and Administrative Sciences

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