Analyzed relationship between risks and expected returns

Dinh, Doan Van

doi:10.1108/jeas-05-2021-0088

Cited by 4 publications

(3 citation statements)

References 20 publications

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“…The empirical results show that the lending size of commercial banks has a positive effect on the marginal rate of income, indicating that commercial banks need to expand and strengthen their lending activities, such as by expanding lending in areas with growth potential, bringing new loan products suitable for each customer, and being in line with the country's economy. In addition to the development of loan size, banks must strengthen measures to strictly control the risks of loans, such as introducing more lending conditions, regulations on approval authority, assessing the debt repayment capacity of customers, and building a credit rating system (Dinh, 2021;Zhou and Wong, 2008).…”

Section: Discussionmentioning

confidence: 99%

Analyze the impact of factors on Vietnam banks’ net interest margin: A panel data approach

Son

2024

J. Infras. Policy. Dev.

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This study deals with the impact of Vietnam bank size, loans, credit risk, and liquidity on Vietnam banks’ net interest margin, which are crucial for economic development. High profit margins result in a lower bad debt ratio due to timely loan collection and good liquidity. This study applies a panel data model to evaluate the relationship among bank size, loans, credit risk, liquidity, and marginal profitability, which are increasingly important in commercial bank growth. Data were collected from 2010 to 2022, and test methods were applied to select a good-fit model. Realizing that the factors that have a close correlation and affect the profit margin are 33.6% and 16.07%, 75.2%, 37.51%, 64.30%, and 41.11%, and R2 is 59.04%, respectively, this suggests that financial managers need to develop appropriate strategies and policies to adjust the factors that adversely affect commercial bank profitability.

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Section: Discussionmentioning

confidence: 99%

Analyze the impact of factors on Vietnam banks’ net interest margin: A panel data approach

Son

2024

J. Infras. Policy. Dev.

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“…The results show that capital structure affects expected returns and that equity generates higher returns than direct investment in risky assets. Dinh (2021) analyzed the relationship between risk and return and found that the higher the profit, the greater http://dx.doi.org/10.21511/bbs.19 (2).2024.10 the risk by approaching the bias model, such as standards, variances, coefficients of various methods, and matrix functions to measure risk. Thus, banks must have a reasonable capital structure to generate profits and minimize risk.…”

Section: Literature Reviewmentioning

confidence: 99%

Commercial banks’ capital structure and performance in Vietnam: Panel data model approach

Van Dinh,

Thi Thu Huyen

2024

Banks and Bank Systems

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The study delves into the factors that influence the capital structure of commercial banks in Vietnam. Capital structure, measured by the net debt-to-asset ratio, is a key indicator of bank leverage. The study uses pooled OLS, fixed effects, and random effects models to analyze the impact of factors such as net interest-earning rate, Corporate Income Tax rate, and liquidity on commercial banks’ profitability and their capital structure. Data from 26 banks during the 2010–2022 period in Vietnam was collected for the analysis. The results indicate that factors such as Tax, ROA, growth, and liquidity have significant impacts on the capital structure of the banks. Specifically, Tax has a beta coefficient of –0.05967, ROA has a beta of –0.01796, growth has a beta of 0.000509, and liquidity has a beta of –0.00045. The study found that ROA, Tax, and liquidity are negatively related to the capital structure of Vietnamese commercial banks, meaning that an increase in these factors leads to a decrease in the banks’ total debt-to-total assets and vice versa. The empirical results suggest that commercial banks can manage their capital structure through these factors to reduce their debt-to-asset ratio, resulting in reduced credit risk, improved asset quality, and increased business efficiency. However, lowering the debt-to-asset ratio may also lead to reduced profits from lending activities, particularly when interest rates are high.

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“…In simple terms, the purpose of investors making investments is to obtain returns in financial terms, namely economic welfare. Investing compares the risk with the expected return (Van Dinh, 2021;Maneemaroj, Lonkani, & C., 2021). These two basic parameters are critical considerations for every investor before making investment decisions.…”

Section: Introductionmentioning

confidence: 99%

Rasch Analysis On Investment Decision Anomalies in Indonesian Islamic capital market

Darmawan

2022

RIEF

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Purpose – This Research aims to understand what behavioural anomalies are in making investment decisions in the Indonesian Islamic capital market and what factors are behavioural anomalies in making investment decisions in the Indonesian Islamic capital market.Methodology - This Research uses a quantitative approach by applying Rasch analysis to measure five types of investment behaviour anomalies. Data was collected using a questionnaire. Findings - The endowment and its items are considered the primary considerations for investors. On the other hand, Anchoring and Adjustment of all the items are not considered the primary consideration. Meanwhile, Conservatism, Optimism and Hindsight spread to both categories of items. The difference in responses by gender was found that only on the item, Feeling greater comfort and optimism with their employer's stock, felt that investing there was less risky than investing elsewhere. Meanwhile, the difference in responses based on age was found that the age of thirties most often gave a different response from other respondents, especially in the indications of Endowment and Hindsight. In comparison, the difference in responses at the age of forties occurred in the items indicating optimism. Financial service providers are advised to offer the most suitable financial products based on gender differences. The most important thing is that in their thirties, an age group that tends to maintain their investment for a longer time and that investment decisions and risks in share ownership where they work are responded differently by gender. Keywords: Behavior Finance, Investment Decision, Rasch Analysis.

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Analyzed relationship between risks and expected returns

Cited by 4 publications

References 20 publications

Analyze the impact of factors on Vietnam banks’ net interest margin: A panel data approach

Analyze the impact of factors on Vietnam banks’ net interest margin: A panel data approach

Commercial banks’ capital structure and performance in Vietnam: Panel data model approach

Rasch Analysis On Investment Decision Anomalies in Indonesian Islamic capital market

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