Credit Information Sharing and Loan Loss Recognition

Balakrishnan, Karthik; Ertan, Aytekin

doi:10.2308/tar-2017-0244

Cited by 27 publications

(9 citation statements)

References 50 publications

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“…Each observation is a firm-year. Post is a dummy variable that equals to one if at or after the year the establishment of PCR in an economy (or its matched control economy) and the data is taken from Djankov, McLiesh & Shleifer (2007), supplemented by Ertan (2017) and(2020). Treatment is a dummy variable equals to one if the economy where the firm operates set up a PCR within the sample period, and zero otherwise.…”

Section: Table 3 Baseline Resultsmentioning

confidence: 99%

“…Our empirical analyses are based a novel global data set of firm financial characteristics merged with patent information and country-specific details of credit reporting systems. We obtain data on the establishment year of PCRs from Djankov, McLiesh and Shleifer (2007), supplemented by Ertan (2017) and(2020). Table 1 presents PCRs introduction years in the sample countries.…”

Section: Research Design and Datamentioning

confidence: 99%

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Credit Information Sharing and Firm Innovation: An Empirical Evidence

Khan

2022

IJBM

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This paper investigates the effect of credit information sharing (CIS) on borrower’s innovation activities. On the foundation of unique dataset from developed and developing countries, we find that public credit registries (PCRs) have significant positive relationship with firms’ innovation. These findings contract the facilitative role of CIS in lowering firm’s cost of capital and boost efficiency. Out findings are robust to different specifications and alternative measures. After the establishment of PCRs, firms may benefit more if these firms have more power in enforcing the contracts and have dispersed banking environment. These findings are aligned with the perspective that improvements in creditors’ information sets leads to innovative portfolios and better financing opportunities.

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Section: Table 3 Baseline Resultsmentioning

confidence: 99%

Section: Research Design and Datamentioning

confidence: 99%

Credit Information Sharing and Firm Innovation: An Empirical Evidence

Khan

2022

IJBM

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“…This enables the management to come to the awareness of the losses made due to unpaid loans. Loan loss provision projects the potential of credit risk as well as the general financial outlook of the bank (Balakrishnan and Ertan, 2019 ). As the volume of credit increases, it does so with credit risk.…”

Section: Literature Reviewmentioning

confidence: 99%

Revisiting credit risk and banks performance of China's commercial banks before and after Covid 19 pandemic

Twum

Agyemang

Sare

2022

J Corp Accounting Finance

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The effectiveness of the financial market is reflected in the financial crisis which mostly results in credit risk. The impact of credit risk in China is likely to affect the global economy since China is the fastest‐growing economy as well as the second‐best economy in the world in terms of gross domestic product. Using panel data for twenty‐eight listed commercial banks in China from 1990 to 2020, the study explored the relationship between credit risk and business performance. The authors utilized the Generalized Methods of Moments (GMM) as the primary estimator while the Pooled Mean Group (PMG) was used as a robust estimator. A negative and statistically significant relationship was found between non‐performing loan and return on equity, as well as loan loss provision and profitability of the bank. On the contrary, capital adequacy ratio revealed a positive and statistically significant relationship with bank performance. Credit growth on the other hand recorded positive but insignificant relationship with performance of banks. The findings will add up to existing literature on credit risk and business performance of commercial banks.

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“…In a study carried out by Balakrishnan and Ertan (2021) on Credit information sharing and recognition of loss on loan showed that CIS improves recognition of bank loss on timely basis due to revelation of NPLs. In another study conducted by Son, Khanh and Liem (2020) on financial development, corruption and credit information sharing between 2004 and 2017 in 120 republics.…”

Section: Empirical Reviewmentioning

confidence: 99%

Financial Statement Lending, Credit Information Sharing and Access to Financial Services by Small and Medium Enterprises in Kenya

Kiring’a¹,

Ndede²,

Wekesa³

2021

RJFA

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Policy makers and scholars acknowledge the significance of small and medium enterprises in stirring the economic growth and development in developing and developed economies. In spite of the generally fast pace by which access to financial services for small and medium enterprises is being established, significant segments of the small and medium enterprises sector do not yet benefit from the expansion. This study therefore investigated the effect of financial statement lending on access to financial services by small and medium enterprises in Kenya. The study further sought to establish the moderating effect of the credit information sharing on the relationship between financial statement lending and access to financial services by small and medium enterprises in Kenya. The study was based on Financial Intermediation Theory and information asymmetry theory. The target population comprised 4,253 small and medium enterprises in Kenya. A sample size of 366 SMEs was target by the study. The study adopted multistage sampling technique to obtain the SMEs respondents. Primary data was utilized and was acquired through semi-structured questionnaires. Data was analysed using descriptive and inferential statistics. Heckman two step selection model was applied in regression analysis. The findings of regression analysis show that financial statement lending had a positive and significant effect on access to financial services among SMEs in Kenya. The results established that credit information sharing had insignificant moderating effect on the relationship between financial statement lending and access to financial services among the SMEs in Kenya. The study concluded that financial statements play a critical role in ensuring small and medium enterprises access financial services. Lenders can determine the financial position of the business by analysing their cashflow in order to be able to advance the credit that the business is able to pay based on their financial statement.

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Credit Information Sharing and Loan Loss Recognition

Cited by 27 publications

References 50 publications

Credit Information Sharing and Firm Innovation: An Empirical Evidence

Credit Information Sharing and Firm Innovation: An Empirical Evidence

Revisiting credit risk and banks performance of China's commercial banks before and after Covid 19 pandemic

Financial Statement Lending, Credit Information Sharing and Access to Financial Services by Small and Medium Enterprises in Kenya

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