International Journal of Nonlinear Analysis and Applications
Presenting a model of non-financial criteria affecting the financial performance of the banking industry using a structural equation modeling approach
Document Type : Research Paper
Authors
1 Department of Accounting at Aras International Campus, University of Tehran
2 Aras International Campus, University of Tehran
Abstract
The present study investigated and analyzed the non-financial criteria affecting financial performance in the banking industry. The present study is applied, survey, descriptive, and correlational type. The study's statistical population included experts and internal managers at different levels of supervision of banks listed on the Tehran Stock Exchange. The sample size was estimated at 384 people based on Cochran's formula. The Lee et al. standard financial performance evaluation questionnaire \cite{1} was used. To measure the non-financial criteria, the researcher-made questionnaire was used. It included 54 indicators in 6 dimensions of "individual, organizational, structural, developmental, process, and environmental factors". The content validity ratio index of Lawshe \cite{2} according to the opinion of 30 experts was greater than 0.33 for all 54 items. In the second stage, Waltz and Basel's content validity index was implemented and it was obtained higher than 0.79. The Cronbach's alpha coefficient of the questionnaires was higher than 0.70, indicating the internal consistency of the items and confirming their reliability. Data were analyzed using structural equation modelling in AMOS 26 software. Individual, organizational, and process factors did not significantly affect the financial performance of the bank. Structural factors with a standard coefficient of 0.28, developmental factors with a standard coefficient of 0.25, and environmental factors with a standard coefficient of 0.24 at the 99\% confidence positively and significantly affected the financial performance of the bank. Using the proposed model of non-financial criteria effective in determining the financial performance of the bank can result in adopting an appropriate approach in the field of financial management of the bank to improve the analysis of the financial performance of the bank.
Keywords
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Volume 17, Issue 3
March 2026Pages 149-157
- Receive Date: 27 June 2024
- Accept Date: 01 September 2024