The impact of working capital management policies on bank profitability"A survey of banks listed on the Damascus securities Exchange"

Abstract

The research studies the effect of capital management policies measured by (the ratio of current assets/total assets IP, the ratio of liabilities/ total assets FP) on profitability measured by (the rate of return on assets and the rate of return on equity) in the presence of bank size and financial leverage as control variables .

The research sample included 11 traditional banks listed on the Damascus stock Exchange for the time period extending from 2013 to 2021.

Data were collected from the annual financial statements of traditional banks, and then the research variables were measured and analyzed using the Eviews 10 program.

The following results were reached:

• There is no significant effect of the working capital investment policy on profitability as measured by both the rate of return on assets and the rate of return on equity.
• There is no significant effect of the working capital financing policy on profitability as measured by both the rate of return on assets and the rate of return on equity.

Finally, the study recommended adopting a moderate financing and investment policy in working capital.