Document Type : Original Article
Authors
1
PhD Student/Candidate in Economics, Science and Research Branch, Islamic Azad University of Tehran, Tehran, Iran.
2
Professor, Department of Economics, Shahid Beheshti University, Tehran, Iran (corresponding author).
3
Associate Professor, Department of Economics, Allameh Tabataba’i University, Tehran, Iran.
4
Assistant Professor, Head of Department of Economics, Faculty of Economics and Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
Abstract
This article is a systematic review of the literature of 59 empirical studies published during the period of 1979-2024, which investigated the factors affecting the profitability of banks. Therefore, it pursues a dual purpose. On the one hand, any decision making by bank management needs to consider the factors which affect their profitability. On the other hand, access to research methods related to factor affecting bank profitability gives researchers the possibility of practical and at the same time more complex research. In order to investigate the factors affecting the profitability of banks, the innovative method of analyzing the concept-oriented matrix was used. Based on this method, the three general dimensions of factors affecting bank profitability, i.e., cyclical, structural, and specific factors of banks, were combined, and next, using the open coding process, the relevant literature was carefully analyzed in 17 sub-categories. The results of the present study show that the interaction of cyclical, structural, and specific factors of banks on their profitability still lacks deep understanding and needs more empirical research. Also, the holistic approach offers a new style of examining existing research and highlights the gap between what we know and what we need to know.
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