M31 - MarketingReturn

This paper aims to find the microeconomic and macroeconomic determinants of European bank profitability from 2012 to 2019 using the regression model with the multicollinearity condition as a matrix parameter, the multicollinearity below the defined value, ensuring regression model reliability. The bank sector profitability is measured by return of average equity, return of average assets and net interest margin as dependent variables. The research creates a set of independent variables based on a literature review. The model is built on a sample of 3,257 European commercial banks for all EU countries excluding Romania due to missing data, and the input data were obtained based on the Orbis Focus Bank and the World Bank Database. The results revealed that the cost to income ratio and loan loss reserves to gross loans are the most important determinants of profitability of European commercial banks as measured by return of average assets. The results also show that GDP growth rate, inflation measured by the consumer prices and loan loss reserves to gross loans are the most important determinants for the net interest margin indicator. We recommend that commercial banks optimize the cost structure, create sufficient reserves, monitor the process of digital transformation and monitor credit risk indicators.

The topic of this paper is customers' trust and satisfaction with online group buying. The model of customer satisfaction was designed as a synthesis of the Expectation - Confirmation Model (ECM) and the DeLone & McLean IS Success Model. Reputation and perceived size of the online group buying website, system quality, information quality and service quality were factors analysed in the model. Trust was perceived as a predictor of customers' satisfaction. Data from the questionnaires were analysed using structural equation modelling. It was found that reputation and perceived size of the online group buying website have the most important impact on customers' trust and satisfaction.