Measuring The Impact Of Operational Risks On Stock Returns "Applied Study On The Private Commercial Banks Listed At Damascus Securities Exchange"

Abstract

The aim of Study is to test the impact of banking operational risks by using the Operating Expenses to Total Assets OEA, the Basic indicator to measure operational risks K_BIA and the Capital adequacy CWA on stock returns measured by Return on Stock ROS in private commercial banks listed at Damascus Stock Exchange, the sample included 11 private commercial banks during the period between (2011-2023), use for the analysis Panel Data model and statistical program (Eviews-11), and by comparing the models, the fixed effects model was chosen to test the effect of independent variables on dependent variable, where The study reached that there is a negative, significant impact of the Operating Expenses to Total Assets OEA on Return on Stock ROS, and there is positive, significant impact of both the Basic indicator K_BIA and the Capital adequacy CWA on Return on Stock ROS, this reflects the efficiency of the performance of private commercial banks in hedging to confront operational risks and in maintaining their financial solvency and managing their assets, which have a positive impact on their stock returns. Finally, the study recommended the necessity of periodically updating the banking systems, adopting effective strategies and an integrated program to control operational risks, which contributes to reducing operational expenses and protect the interests of shareholders.