The Structural Model for Internal determinants Affecting Profitability According to CAMELS Model An Applied Study in Gulf Countries

Abstract

The study of the determinants of profitability in various institutions is still a subject of interest, research and study by interested academics and practitioners due to the urgent and continuing need to know the most important determinants that affect the profitability of those institutions and to try to predict what they will be like in the future with the aim of improving their level of performance. I have presented many factors affecting profitability from different points of view, which have been studied according to many perspectives, including the CAMELS model. This study aims to: study the construct validity of the model of internal factors affecting profitability, by reconstructing and developing the CAMELS model for analyzing profitability, and studying... Construct validity of the model, In order to achieve the goal of the study, the researcher adopted the inductive and analytical approach by extrapolating what was presented in the accounting literature governed by Islamic Sharia, supported by statistical analysis of the data of the study sample during the period 2009-2018 in the Arab Gulf countries using the Smart PLS program. The study concluded that: The basic factors that make up the internal factors affecting profitability consist of capital factors and operational factors, and this model is characterized by evidence of construct validity.