Competition between Banks and Bond Markets: Hardly Impacted or Softly Complemented

Astrauskaitė, Ieva; Paškevičius, Arvydas

doi:10.1016/s2212-5671(14)00012-4

Cited by 11 publications

(5 citation statements)

References 3 publications

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“…This approach is more efficient since it is a direct action that promotes long-term economic growth without the need for any financial intermediaries (Warner & Sullivan, 2017). It is important to highlight that the reasons affecting bank bond issuance are currently being disputed (Astrauskaite & Paškevicius, 2014; Ben-Zion et al, 2018; González-Galarza, 2020; Kaya & Wang, 2016; Martellini et al, 2018). This study is different from others that have employed panel data analysis in terms of efficiency (Dimitras et al, 2018;Othman et al, 2017;Thilakaweera et al, 2016;Zameer et al, 2020).…”

Section: Introductionmentioning

confidence: 84%

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The relationship between debt securities issuance, profit efficiency, and Jordanian commercial banks’ operational performance

Al-Qudah

Alrjoub

2022

Investment Management and Financial Innovations

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The purpose of this study is to investigate whether or not the issuing of debt securities and the effectiveness of profit management affect Jordanian banks’ operational performance. The assessments are carried out with the help of data obtained from the financial statements of commercial banks that are listed on the Amman Stock Exchange (ASE) from 2016 to 2020. Estimation of the regression equation is performed with the help of the non-linear analysis. The study’s findings showed that the issuance of debt securities has a significant (0.02) influence on banks’ operational performance. Furthermore, profit efficiency has an insignificant (0.363) influence on banks’ operational performance. Overall, the findings of the study are consistent with those of earlier empirical research. The most important contribution of this paper is that the determination of debt security issuers’ prospects associated with the Jordanian economy can be improved, and financial institutions and commercial banks can take corrective measures to reduce variation and increase development.

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Section: Introductionmentioning

confidence: 84%

“…Therefore, bonds can boost bank performance as a source of capital. Furthermore, alternative bank funding sources, such as bonds, can boost bank performance (Astrauskaite & Paškevicius, 2014). Concerns must carry out corporate operations and resolutions to pursue an expansion plan.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between debt securities issuance, profit efficiency, and Jordanian commercial banks’ operational performance

Al-Qudah

Alrjoub

2022

Investment Management and Financial Innovations

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“…Issuance of bonds gives companies the freedom to take corporate action without binding the rules that limit the lenders (Lin et al, 2013). There is a tendency to change the system of dependence on funding from bank-based to market-based (Astrauskaite & Paškevicius, 2014). Issuing bonds have a maturity that remains different from equity financing that has unlimited maturity (Norden et al, 2016).…”

Section: Bonding Mechanism By Issuing Bondsmentioning

confidence: 99%

The Role of Monitoring and Bonding Mechanisms of Good Corporate Governance Towards Banks Performance

Lestari

Wahyudi

Muharam

et al. 2020

HSSR

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Purpose of the study: This paper aims to examine the effects of the monitoring mechanism and bonding mechanism of corporate governance on the performance of the bank. The monitoring mechanism is divided into an external mechanism, represented by concentrated ownership, and the internal mechanism is represented by the proportion of independent board. Bonding mechanism is measured issuance of bonds as long-term debt financing.Methodology: This study is predictive and exploratory, so the Partial Least Squares Structural Equation Modeling using a WarpPLS60 application. Researchers use data from 24 banks that constantly has the value of bonds circulated, which from 2011 to 2018. There are consists of 4 state-owned commercial banks, 13 private banks, and 7 regional governmentowned banks. Main Findings:The researcher found that external monitoring mechanisms as measured by ownership concentration, positively and significantly influence the performance at government-owned banks. Internal monitoring mechanism, as measured by the percentage of the number of independent commissioners, positively and significantly affects the performance at all the banks. The bonding mechanism as measured by issuing bonds negatively and significantly affects the performance of all the banks. Applications of this study:The integrative multi-theory model proposed by the authors in this study is a unique contribution to the intermediary financial literature. Banks seeking to maximize their performance must be balanced with the interests of shareholders and their stakeholders. Novelty/Originality of this study:The study examined the differences in behaviour and the role of monitoring and bonding mechanisms of corporate governance in state-owned banks and private. The results of this study contribute to the theory of entrenchment and financial intermediation.

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“…-An index on regulatory burden of corporate bond market (RBI) (INDEX US ), representing the corporate bond market regulations, regulatory and fiscal environment and the influence of these components to the development of the market (this index was constructed by the author of the paper, including qualitative assessment of the legal and regulatory framework of the corporate bonds in the country, tax system as well as administrative burden (cots of issuing and meeting other legal requirements); all these categories were evaluated in the range of 1 to 10 and weighted equally); -Internet dissemination (% of population with access to the Internet) (INTER-NET US ) -a factor that describes the impact of ICT on the development of corporate bond market (Astrauskaitė 2014); -Local banks' loans to the private sector in billions of USD (LOANS US ) -a factor that characterizes the influence of the banking sector to the corporate bond market development (Astrauskaitė, Paškevičius 2014).…”

Section: Case Study Of Usamentioning

confidence: 99%

“…-An index on regulatory burden of corporate bond market (RBI) (INDEX LT ), representing the corporate bond market regulations, regulatory and fiscal environment and the influence of these components to the development of the market; -Number of mobile telephone subscribers per 100 inhabitants (MOBILE LT ) -a factor that describes the impact of ICT on the development of corporate bond market (Astrauskaitė 2014); -Bank loans for the private companies in billions EUR (LOAN LT ) -a factor that characterizes the influence of the banking sector to the corporate bond market development (Astrauskaitė, Paškevičius 2014).…”

Section: Case Study Of Lithuaniamentioning

confidence: 99%

Multivariate Analysis of Short and Long-Impact Indicators for Corporate Bond Market Development

Astrauskaitė

2016

Business, Management and Education

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An additional instrument or established access to the capital market funding would increase business opportunities for performance, development, growth, channeling financing for sustainable and long-term economic growth and job creation. Capital market and its level of development or further development opportunities are exposed to different factors. Clear identification of them mobilizes the attention of accurate and useful decisions or actions influencing the expected results, their adoption and implementation, monitoring. With the purpose to identify a set of factors influencing the capital market deve lopment as well as to introduce a model of their short term and long term impact projections, the ARDL model for the US and Lithuanian cases is introduced. The concluding remarks state on different legal and regulatory framework, banking sector and ICT measures exposures to the different stages of the corporate bond market development.

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Competition between Banks and Bond Markets: Hardly Impacted or Softly Complemented

Cited by 11 publications

References 3 publications

The relationship between debt securities issuance, profit efficiency, and Jordanian commercial banks’ operational performance

The relationship between debt securities issuance, profit efficiency, and Jordanian commercial banks’ operational performance

The Role of Monitoring and Bonding Mechanisms of Good Corporate Governance Towards Banks Performance

Multivariate Analysis of Short and Long-Impact Indicators for Corporate Bond Market Development

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