The Impact of Bank Size on Financial Performance: Evidence from Banking Sector in Iraq

Abstract

The objective of this study is to examine the influence of the size of banks on the financial performance of financial enterprises in Iraq. In order to accomplish this objective, a model was created to assess the correlation between the dependent and independent variables using a straightforward linear regression technique. The secondary data was obtained from the audited annual reports of the banks listed on the Iraqi stock market (ISX) over the period from 2017 to 2021. The variable under investigation is profitability, which is quantified by the rate of return on assets (ROA). The variable that is being used to determine profitability is Bank Size, which is calculated using the indicators of the natural logarithm of total assets. The findings indicate a strong and statistically significant correlation between the total assets and the return on assets. The study suggested that future research should priorities examining and contrasting the effects of utilizing various sectors in order to determine the correlation between bank size and business performance.