Table 1 Summary of variables and their expected relationship
From: Deposit mobilization and its determinants: evidence from commercial banks in Ethiopia
Variables | Explanation/Formula | Expected effect | ||
|---|---|---|---|---|
Dependent variable | Deposit mobilization (DM) | Natural log of total deposit | NA | |
Independent variables | Firm-specific variables | Return on Asset (ROA) | Earnings after interest and tax divided by total asset |  +  |
Loan to deposit ratio | The ratio of a bank's total loans and advance to its total deposits |  −  | ||
Capital Adequacy (CA) | Paid-up capital divided by total assets |  −  | ||
Macroeconomic Variables | Inflation (INF) | Annual percentage changes in the consumer price index (CPI) i.e (CPI t–CPIt-1) ÷ CPIt-1 |  −  | |
Gross Domestic Products (GDP) | Annual GDP growth rate |  +  | ||
Population Growth (PG) | Population growth rate |  +  | ||
Political stability (PS) | World Bank political stability and absence of violence index |  +  | ||