Risk taking behavior of privatized banks

Mohsni, Sana; Otchere, Isaac

doi:10.1016/j.jcorpfin.2014.07.007

Cited by 40 publications

(14 citation statements)

References 43 publications

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“…is the ℎ bank's risk at time . The higher increase in leads to the more stability of the commercial bank, and the lower bank risk (Hryckiewicz, 2014;Mohsni & Otchere, 2014), is affected by the research variable:…”

Section: Research Modelmentioning

confidence: 99%

“…-, −1 is the logarithm of total assets of bank at time − 1 (Agusman, Cullen, Gasbarro, Monroe, & Zumwalt, 2014;Mohsni & Otchere, 2014), to consider that commercial banks scale is used to make the control of the theory of economic scale and the problem is too large to collapse; -, −1 is the ratio of non-performing loans and total loans of the bank at time − 1 (Dam & Koetter, 2012), to affect the credit risk of commercial banks positively on general bank risk;…”

Section: And a Set Of Control Variablesmentioning

confidence: 99%

“…, −1 is a return on equity of bank at time − 1 (Dam & Koetter, 2012;Mohsni & Otchere, 2014), to point out the relationship between equity-profit and risk, so , −1 is used as a variable explanation for the impact of equity-profit negatively on bank risk; -…”

Section: And a Set Of Control Variablesmentioning

confidence: 99%

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State-ownership and bank risk: A case of Vietnamese commercial banks

Hung

Quoc

2020

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The paper aims to verify the impact of state-ownership on banks’ risks at Vietnamese commercial banks. Based on the survey data of 31 commercial banks in Vietnam from 2007 to 2018, the empirical result shows that the state-ownership in the Vietnamese commercial banks has a decrease in the banks’ risks. Besides, the research result is shown that the lower Vietnamese commercial banks’ risks at the previous time lead to the lower ones at present. Furthermore, this evidence contributes to the debate of state-ownership for the Vietnamese commercial banks which gives policy-makers to pay more attention to the efficiency of joint-stock state-ownership.

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Section: Research Modelmentioning

confidence: 99%

Section: And a Set Of Control Variablesmentioning

confidence: 99%

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State-ownership and bank risk: A case of Vietnamese commercial banks

Hung

Quoc

2020

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“…They highlighted that a higher market power of banks is associated with an increased level of risk-taking and insolvency risks. Mohsni and Otchere (2014) focused on the risk-taking behavior of banks through using Z-score, volatilities in return on equity and return on assets, and comparisons of NPLs to total loans; they found that the private sector banks face smaller risk than the public sector banks and termed this as an industry-wide phenomenon. Chang (1999) explored the efficiency of Taiwanese major financial intermediaries by incorporating risk factors (NPLs, allowance for loan losses, and riskier assets) and concluded that risk has a significant relationship with the bank efficiency.…”

Section: Literature Reviewmentioning

confidence: 99%

Market Concentration, Risk-taking, and Efficiency of Commercial Banks in Pakistan: An Application of the Two-Stage Double Bootstrap DEA

Khan¹,

Ali²,

Khan³

2018

BER

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Efficiency analysis is a vital part of prudent management practices across the banking industry, yet there is only sparse literature examining bank efficiency, especially in Asian developing countries and using a comprehensive methodology. This study aims to analyze bank efficiency in a South Asian developing country, Pakistan, for the period 2007 to 2014. Borrowing a technique from Simar and Wilson (2007), this study applies two-stage data envelopment analysis (DEA) with double bootstrapping. Our results reveal that private banks are more technically efficient than government banks; conventional commercial banks precede Islamic commercial banks in efficiency, and large banks are more technically efficient than small and medium-size banks. Moreover, the results indicate that market concentration, capital risk, credit risk, and liquidity risk have significant effects on the overall efficiency of banks. This study provides an important opportunity to advance the understanding of bank efficiency, market concentration, and risk complications in developing countries and gives insightful directions to researchers and financial institutions.

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“…22 Assignment of treatment to rejection, as opposed to success, in obtaining financing is a choice made to align with (Berg, 2018), who similarly focuses on the real effects of getting rejected. 23 Altman's Z-score is used extensively in corporate finance literature as a proxy for credit-worthiness of firms (see Lemmon and Roberts, 2010;Mohsni and Otchere, 2014). The Z'-score is put forth by Altman and Hotchkiss (2006) especially devised for private firms, and is equal to 0.717×X1 + 0.847×X2 + 3.107×X3 + 0.42×X4 + 0.998×X5, where X1, X2, X3 and X5 are respectively measures of firm liquidity, retained earnings, operating income, and sales, standardized by total assets, and X4 is book value of equity, standardized by total equity.…”

Section: Matching Proceduresmentioning

confidence: 99%

Essays on Financial Technology and SME Finance: A Tale of Two Effects of the Global Financial Crisis: Financing SMEs and Innovative Financing

Saiedi¹

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as great as any I have experienced. I owe this to many. First, I would like to thank my supervisors at UPM, Felipe Ruiz, and at KTH, Anders Broström and Ali Mohammadi. Their patience and unwavering support in directing my curiosity and musings into meaningful and grounded endeavors has been priceless. Felipe, thank you so much for facilitating the way for me to engage in exciting research in finance and our enriching, thought-provoking and enjoyable discussions. You have always been very supportive of my endeavors and ambitions along the way and I immensely appreciate that. Anders, you are a great advisor, thoughtful, patient, committed and unyieldingly supportive. Thank you for giving me, the freedom to explore my ideas, and great support in guiding them. Ali, you are as great a teacher as one can hope for, energetic, dedicated, pedagogical, and untiringly optimistic. I value your advice greatly, not merely professionally, but personally as well.I would like to thank Gustavo Morales for his constant help and friendship, even going out of his way to make me feel welcome at UPM. That also goes for Isabel Herran who was devotedly helping me and others throughout the years. I would like to thank Hans Lööf for his invaluable help and for trusting me to deliver lectures or lead Masters' students. I would like to thank Andreas Stephan and Gustav Martinsson for valuable comments on my papers. I benefitted immensely from visiting, attending and engaging in seminars and courses at the Swedish House of Finance (SHoF) at Stockholm School of Economics for more than two years. I would particularly like to thank Per Strömberg, Ramin Baghai and Daniel Metzger at SHoF for fascinating conversations and courses on research in financial economics.This journey was enriched enormously because it was shared with fellow Ph.D. students and colleagues,

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Risk taking behavior of privatized banks

Cited by 40 publications

References 43 publications

State-ownership and bank risk: A case of Vietnamese commercial banks

State-ownership and bank risk: A case of Vietnamese commercial banks

Market Concentration, Risk-taking, and Efficiency of Commercial Banks in Pakistan: An Application of the Two-Stage Double Bootstrap DEA

Essays on Financial Technology and SME Finance: A Tale of Two Effects of the Global Financial Crisis: Financing SMEs and Innovative Financing

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