Global policy uncertainty and cross-border acquisitions

Impacts of economic policy uncertainty (EPU) and institutional quality (IQ) on bank risk-taking behavior

“…From studying previous literature we see that effect of such uncertainty has slowed the economic recovery process by reducing investment and employment; which has also had a considerable impact on financial intermediary, particularly on bank stability, bank loan pricing and bank credit growth (Caggiano et al, 2017;Caglayan and Xu, 2019;Danisman et al, 2020;Gulen and Ion, 2016;Karadima and Louri, 2021;Phan et al, 2021a, b;Tran and Houston, 2021;Wu et al, 2020;Zhang et al, 2021). future orientation also badly influenced the economy and business environment (Al-Shboul et al, 2020;Bilgin et al, 2021;Dang et al, 2021;Paudyal. Several scholars have looked into the impact of EPU in various ways during the last few years like on corporate decision-making (Al-Thaqeb and Algharabali, 2019) on bank stability (Bilgin et al, 2021;Cheng et al, 2021;Nguyen, 2021b;Phan et al, 2021a, b;Shabir et al, 2021), bank risk-taking (Brana et al, 2019;Tran, 2019;Wu et al, 2020;Zhang et al, 2021), on cross border merger and acquisition (Dang et al, 2021;Paudyal et al, 2021), green growth (Gu et al, 2021), bank earning opacity (Desalegn and Zhu, 2021), earning management (Kim and Yasuda, 2021), loan pricing (Ashraf and Shen, 2019) and corporate position regarding cash holdings (Duong et al, 2020). Tran (2019) studied 16,274 firms of eighteen countries during the period 2005 up to 2016 and found that EPU negatively influences corporate risk-taking, which gets stronger in countries with a lower individualistic culture and a higher uncertainty avoidance culture.…”

“…In this study, non-performing loan ratio (NPLR) has been used as a proxy of bank credit risk measurement while investigating EPU and IQ's impacts on bank risk-taking behavior. Based on an appropriate context and along with previous authors like Bilgin et al (2021), Dang et al (2021), Desalegn and Zhu (2021) and Stolbov and Shchepeleva (2020) to measure impact, the following econometric model has been developed for this study:…”

“…From studying previous literature we see that effect of such uncertainty has slowed the economic recovery process by reducing investment and employment; which has also had a considerable impact on financial intermediary, particularly on bank stability, bank loan pricing and bank credit growth (Caggiano et al ., 2017; Caglayan and Xu, 2019; Danisman et al ., 2020; Gulen and Ion, 2016; Karadima and Louri, 2021; Phan et al ., 2021a, b; Tran and Houston, 2021; Wu et al ., 2020; Zhang et al ., 2021). future orientation also badly influenced the economy and business environment (Al-Shboul et al ., 2020; Bilgin et al ., 2021; Dang et al ., 2021; Paudyal.…”

“…Several scholars have looked into the impact of EPU in various ways during the last few years like on corporate decision-making (Al-Thaqeb and Algharabali, 2019) on bank stability (Bilgin et al ., 2021; Cheng et al ., 2021; Nguyen, 2021b; Phan et al ., 2021a, b; Shabir et al ., 2021), bank risk-taking (Brana et al ., 2019; Tran, 2019; Wu et al ., 2020; Zhang et al ., 2021), on cross border merger and acquisition (Dang et al ., 2021; Paudyal et al ., 2021), green growth (Gu et al ., 2021), bank earning opacity (Desalegn and Zhu, 2021), earning management (Kim and Yasuda, 2021), loan pricing (Ashraf and Shen, 2019) and corporate position regarding cash holdings (Duong et al ., 2020). Tran (2019) studied 16,274 firms of eighteen countries during the period 2005 up to 2016 and found that EPU negatively influences corporate risk-taking, which gets stronger in countries with a lower individualistic culture and a higher uncertainty avoidance culture.…”

Reducing the Economic Risk and Increasing the Operational Profit

“…In the globalized economy, the sources of economic risk faced by enterprises are determined by the internal conditions they have vis-à-vis the factors of production involved on the one hand [1][2][3] and on the other hand by dependence on the conditions market, which depends on the specifics of the industry and the economic rules adopted can create greater or lesser advantages [4,5]. The complexity determined by the product variants, the number, and the differentiation of the manufacturing processes must, in most cases, be correlated with the product architecture [6].…”