scholarly journals The Leverage Ratio, Risk-Taking and Bank Stability

2018 ◽  
Author(s):  
Jonathan Acosta Smith ◽  
Michael Grill ◽  
Jan Hannes Lang
Keyword(s):  
Risk Taking ◽  
Bank Stability ◽  
Leverage Ratio

scholarly journals The Leverage Ratio, Risk-Taking and Bank Stability

2020 ◽  
pp. 100833
Author(s):  
Jonathan Acosta-Smith ◽  
Michael Grill ◽  
Jan Hannes Lang
Keyword(s):  
Risk Taking ◽  
Bank Stability ◽  
Leverage Ratio

scholarly journals The Leverage Ratio, Risk-Taking and Bank Stability

2017 ◽  
Author(s):  
Jonathan Acosta Smith ◽  
Michael Grill ◽  
Jan Hannes Lang
Keyword(s):  
Risk Taking ◽  
Bank Stability ◽  
Leverage Ratio

scholarly journals Does Financial Liberalization Affect Bank Risk-Taking in China?

SAGE Open ◽  
2019 ◽  
Vol 9 (4) ◽  
pp. 215824401988794 ◽  
Author(s):  
Rui Wang ◽  
Hang (Robin) Luo
Keyword(s):  
Law Enforcement ◽  
Risk Taking ◽  
Financial Liberalization ◽  
State Ownership ◽  
Bank Risk ◽  
Bank Stability ◽  
Positive Effects ◽  
Level Data ◽  
Chinese Banks ◽  
Political Conditions

This article examines the effect of financial liberalization on bank risk-taking, using bank-level data of 169 Chinese banks from 2000-2014. Empirical results show that bank stability increases with the development of financial liberalization. We also provide evidence indicating that banks with larger size, longer operating periods, and state ownership are more salient with the development of financial liberalization. However, such positive effects of financial liberalization on bank stability may be weakened by worse macroenvironment gauged by low economic growth, poor law enforcement, and instable political conditions.

The impact of multimarket contacts on bank stability in Vietnam

2019 ◽  
Vol 31 (3) ◽  
pp. 336-357 ◽  
Author(s):  
Tu DQ Le ◽  
Son H. Tran ◽  
Liem T. Nguyen
Keyword(s):  
Risk Taking ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
Bank Stability ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to investigate the impact of multimarket contacts on bank stability in the Vietnamese banking system between 2006 and 2015. Design/methodology/approach The system generalized method of moments proposed by Arellano and Bover (1995) is used to examine the relationship between multimarket contacts and bank stability. Findings The findings show that multimarket contacts among Vietnamese commercial banks improve bank stability. In addition, more x-efficient banks appear to be more stable. The same is true for banks with less holding liquid assets, for those with less excessive lending, for smaller banks, for those with the greater level of intermediation and for those with a higher level of foreign ownership. Listed banks are found to be less-risk taking than unlisted banks. Originality/value This study is the first attempt to examine the relationship between multimarket contacts and bank stability in an emerging market in the Asia-Pacific region.

Intellectual capital, bank stability and risk-taking: evidence from Asian emerging markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tamanna Dalwai ◽  
Dharmendra Singh ◽  
Ananda S.
Keyword(s):  
Emerging Markets ◽  
Intellectual Capital ◽  
Risk Taking ◽  
Bank Risk ◽  
Bank Stability ◽  
Gmm Estimation ◽  
Content Type ◽  
Risk Taking Behavior ◽  
Asian Emerging Markets ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of intellectual capital (IC) efficiency on the banks’ risk-taking and stability of Asian emerging markets. Design/methodology/approach This study uses a sample of 204 listed banks from 12 Asian emerging countries for the period 2010 to 2019. Data were analyzed using Ordinary Least Squares regression and checked for robustness using system generalized methods moment (GMM) estimation. The dependent variable of bank stability is measured using Z-score-based return on assets (ROA) and return on equity (ROE). The second dependent variable of bank risk is proxied by the standard deviation of ROA, ROE, non-performing loans and loan loss provision. Findings The results suggest the IC efficiency has no association with bank risk-taking and stability. The findings lend no support to the resource-based theory. The robustness of this result is confirmed by the system GMM estimation. However, support is found for the competition fragility view as high market power is associated with low risk-taking. The IC subcomponents, human capital efficiency (HCE) report a negative coefficient for bank risk-taking thereby having no support for the hypothesized relationships. Diversified banks with a higher deposit to total asset ratio resort to high risk-taking. Research limitations/implications IC efficiency does not have an impact on the bank’s risk-taking behavior and stability for Asian banks. Managers can use these findings to improve their IC and boost investor confidence. Regulatory authorities should increase its monitoring function of banks when the GDP decreases as risk-taking behavior are galvanized during this period. Originality/value This research is one of the first to provide empirical evidence of IC efficiency’s relationship with bank stability and bank risk-taking. The implications are useful for policymakers, managers and governing bodies to enhance the banks’ IC efficiency.

scholarly journals The Impact of Organizational and Business Strategy on Performance and Risk in the Insurance Industry

2015 ◽  
Vol 1 (2) ◽  
pp. 107 ◽  
Author(s):  
Gene C. Lai ◽  
Lin-Yhi Chou ◽  
Lih Ru Chen
Keyword(s):  
Organizational Structure ◽  
Risk Taking ◽  
Business Strategy ◽  
Insurance Industry ◽  
Stochastic Frontier ◽  
Organizational Structures ◽  
Business Strategies ◽  
Leverage Ratio ◽  
Risk Taking Behavior ◽  
The Impact

This paper examines the impact of organizational structure and business strategy on company efficiency, profitability, and risk-taking behavior in the Taiwanese life insurance industry. The insurance industry in Taiwan provides an interesting environment for studying this issue because different organizational forms coexist in the insurance industry. We examine four different types of companies by organizational structure and two different business strategies. We use two frontier methodologies (stochastic frontier approach and data envelopment analysis approach) to measure the efficiency performance of insurance firms. The results show that organizational structures and business strategies have significant impact on efficiency, profitability, and risk-taking behavior. In addition, we also find size, lines of business, leverage ratio, and market share have significant impact on efficiency, profitability, and risk-taking behavior. Our overall evidence suggests that a more competitive environment should be encouraged in the Taiwanese insurance industry to improve the insurer efficiency.

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