Testing the Relationship between Corporate Governance and Bank Performance – An Empirical Study on Vietnamese Banks

Tu, Tran Thi Thanh; Sơn, Nguyễn Hồng; Khanh, Pham Bao

doi:10.5539/ass.v10n9p213

Cited by 6 publications

(3 citation statements)

References 15 publications

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“…Credit risks are arising with respect to the debtors are fails to repay the borrowed amount as per the credit contract with the concern financial institutions. This situation may occur due to late repayment, non-payment of full loan balance and non-repayment of interest and principal due to financial loss in the business enterprises etc (Tu et al, 2014). There is positive relationship between success of the project and the credit loss management expense (Pyle, 1999).…”

Section: Discussionmentioning

confidence: 99%

Analysing the Behaviour of Financial Risk Management and Its Impact on Success of Project

Luong Huynh Anh

2023

IJRVOCAS

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In this financial oriented business world, the risk and risk measuring activities such as identifying the issues, analysing and modifying of ambiguity in the credit creation and investment behavioural decision making. (Kishk et. al. 2008) Basically, the risk management process comes when a stakeholder of a corporation or the fund allocator decides on the basis of analysis and attempts to evaluate the probable losses in any investment. To avoid this kind of risk or technically termed as the moral hazard problem, the investor has to take certain necessary action for gaining better profitability or minimize the risk of loss. The risk management strategies are termed as behavior of the financial risk (Moles, 2016). The present paper aims to study the various behavioral decision-making process of the manager or the investor of the corporation towards the profitability. It also aims to emphasizes the impact of this strategic behavior of the firm or corporation’s decision on the successful growth and establishment. The study is significant with respect to evaluate the cause and effect through the strategies implemented by the investors. It also attempted to reveal the project success story by implementing the risk averse practices. The project victory criteria are a measurable or quantifiable term of expected outcome of the running project which must be accepted by the stakeholder. Financial risk measurement is always being an implicit proportion of the management in the firm or industry. The present study adopts the descriptive research method and uses the secondary data sources published in the company’s websites and annual statements. The collected data have been analyzed by an appropriate statistical and econometrical tool to evolve the relationship between the behavioural aspects of risk management strategies and its influence on the project success of the firm. The risk management of credit on commercial bank is most essential for the benefit and stop suffering from the losses on the project. Prevention and controlling the risk of loans and advances is a tough and very challenging target for the business project. It is statistically evidence that there is an association between the profit and credit loss expense. On the whole, the present study explores the profitability and the success of the financial organization.

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Section: Discussionmentioning

confidence: 99%

Analysing the Behaviour of Financial Risk Management and Its Impact on Success of Project

Luong Huynh Anh

2023

IJRVOCAS

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“…Moreover, lack of awareness of the necessary of a corporate governance framework is one critical reason for its weaknesses. There is also a significant gap between the corporate governance practice in Vietnam banking system and international principal (Tu, Son, & Khanh, 2014). Tu et al (2014) also found corporate governance practice in banking that the supervisory board and board of directors is the weakest part using the corporate governance index (CGI).…”

Section: Literature Reviewmentioning

confidence: 99%

“…There is also a significant gap between the corporate governance practice in Vietnam banking system and international principal (Tu, Son, & Khanh, 2014). Tu et al (2014) also found corporate governance practice in banking that the supervisory board and board of directors is the weakest part using the corporate governance index (CGI). They also stated that the corporate governance has positive impact on the performance of Vietnam banking system.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Corporate Governance on Financial Risk in Vietnamese Commercial Banks

Trinh¹,

Duyen²,

Thảo³

2015

IJEF

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This paper approaches the corporate governance mechanism to study the impact of corporate governance factors on capital risk, credit risk, and liquidity risk in Vietnamese commercial banks. This approach divides corporate governance into internal mechanism and external mechanism. The empirical study investigates 26 joint-stock commercial banks in the period of 2009-2013. The empirical study indicates that board strengths, foreign capital, information disclosure, and stakeholder roles have significant impacts on financial risk management in the banking systems. The study result provides key indicators for policy makers to build corporate governance mechanism for the financial risk management in Vietnam banking system.

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Compliance of Listed Companies with Codes of Corporate Governance and Impact on Corporate Performance: Evidence from Sri Lanka

Dissanayake

Dissabandara

Ajward

2021

Future of Business and Finance

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Testing the Relationship between Corporate Governance and Bank Performance – An Empirical Study on Vietnamese Banks

Cited by 6 publications

References 15 publications

Analysing the Behaviour of Financial Risk Management and Its Impact on Success of Project

Analysing the Behaviour of Financial Risk Management and Its Impact on Success of Project

The Impact of Corporate Governance on Financial Risk in Vietnamese Commercial Banks

Compliance of Listed Companies with Codes of Corporate Governance and Impact on Corporate Performance: Evidence from Sri Lanka

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