The impact of exchange rate on financial performance of Lebanese banks

Ahmad Kabrit

Master's thesis

The impact of exchange rate on financial performance of Lebanese bank

Abstract:

The main aim of this thesis is to identify the effect of fluctuations in the exchange rates of the main foreign currencies circulating in Lebanon on the financial performance of the banks listed on the Lebanese Stock Exchange, as the following financial performance indicators were relied upon: return on assets, return on equity, return per share, turnover rate the stock, and the market value of the bank’s share during the period from 2016 to 2020, as the study included the four main banks listed on the Lebanese Stock Exchange, and a comprehensive comparison of the exchange rates. The subject of the study, and the researcher used several statistical methods, and the study concluded with a set of results, the most important would be: a clear statistically significant effect of fluctuations in exchange rates at a level of significance (α ≤ 0.05) on any of the banks' financial performance indicators. The results of the study were different from the results of many previous studies. The study recommended the necessity of conducting more studies to determine the factors affecting the financial performance of the banks listed on the Lebanese Stock Exchange.

Abstract:

The main aim of this thesis is to identify the effect of fluctuations in the exchange rates of the main foreign currencies circulating in Lebanon on the financial performance of the banks listed on the Lebanese Stock Exchange, as the following financial performance indicators were relied upon: return on assets, return on equity, return per share, turnover rate the stock, and the market value of the bank’s share during the period from 2016 to 2020, as the study included the four main banks listed on the Lebanese Stock Exchange, and a comprehensive comparison of the exchange rates. The subject of the study, and the researcher used several statistical methods, and the study concluded with a set of results, the most important would be: a clear statistically significant effect of fluctuations in exchange rates at a level of significance (α ≤ 0.05) on any of the banks' financial performance indicators. The results of the study were different from the results of many previous studies. The study recommended the necessity of conducting more studies to determine the factors affecting the financial performance of the banks listed on the Lebanese Stock Exchange.

Keywords

ROE, ROA, Pearson Correlation, Stock Turn over, EPS

Keywords

ROE, EPS, Pearson Correlation, ROA, Stock Turn over

Language used: English

Date on which the thesis was submitted / produced: 26. 10. 2020

Thesis defence

• Date of defence: 8. 6. 2021
• Supervisor: Petr Teplý
• Reader: Petra Jílková

Vysoká škola ekonomická v Praze

Master programme:
Finance and Accounting