Factors that In uence illiquidity in the South African Banking Industry: Empirical Evidence of Commercial Banks
Date
2019
Authors
Tsela, Sifiso.
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Abstract
This paper investigates the determinants of illiquidity in the South African
banking industry using listed commercial banks. We selected two theoretically
established illiquidity measures and perform empirical analysis using rms spe-
ci c variables and macroeconomic variables. A xed e¤ect regression model was
adopted and the empirical results indicate that total cash to assets ratios and
rms market size as proxy by market capitalization are the signi cant factors
that in uence illiquidity in the South African banking industry. These results
are consistent with the ndings in the literature. Furthermore, we nd no dif-
ference between the illiquidity measures used in the study as they lead to the
same conclsuion.
Keywords: Commercial banks, illiquidity, rms speci c factors
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Citation
Tsela, Sifiso Zwelonke, Factors that influence illiquidity in the South African Banking Industry :empirical evidence of commercial banks, University of the Witwatersrand, Johannesburg, https://hdl.handle.net/10539/29113