The effects of risks and environmental factors on bank cost efficiency: A study in East Asia and Pacific region

Phan, Thu; Daly, Kevin; Doan, Anh‐Tuan

doi:10.1080/23322039.2018.1510719

Cited by 7 publications

(3 citation statements)

References 46 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the banking sector, Barry et al (2016) argue that, under the alignment hypothesis, banks with controlled ownership might leave less scope for managers to engage in lending corruption. Unite and Sullivan (2003) show controlling shareholders have strong incentives to monitor bank management through the tight oversight of lending practices, operational efficiency, and risk management (see also Phan et al, 2018). Hence, we expect that the incentive alignment hypothesis argues for a positive relation in which controlling shareholders have little incentive to conceal information and are willing to disseminate firm‐specific information, as follows.…”

Section: Literature Reviewmentioning

confidence: 99%

Bank ownership concentration and stock price informativeness: International evidence

Doan

Lin

Shen

2022

Euro Fin Management

View full text Add to dashboard Cite

This paper examines the relation between ownership concentration and stock price informativeness around the world. Using a sample of banks from 59 countries between 2002 and 2019, we find robust evidence from a linear model supporting the entrenchment effect. However, the nonlinear model shows that the effect of control rights on the informativeness of stock prices forms a U‐shaped curve. We also document that banks with controlling shareholders have more volatility in the information content of bank stock prices in a poor regulatory environment or developing countries.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Bank ownership concentration and stock price informativeness: International evidence

Doan

Lin

Shen

2022

Euro Fin Management

View full text Add to dashboard Cite

show abstract

“…With this growing literature on ownership structure in developing economies, some studies go further to compare the corporate performance in different ownership structures but are inconclusive (see Phan, Daly, & Doan, 2018; Wei, Xie, & Zhang, 2005; Yu, 2013). Some parts of the existing literature imply that firms in economies with less stable governments are likely to be less efficient and more vulnerable to political institutions' outcomes (e.g., Julio & Yook, 2012; Micco, Panizza, & Yanez, 2007).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Economic uncertainty, ownership structure and small and medium enterprises performance

Doan

Tran

2020

Australian Economic Papers

View full text Add to dashboard Cite

This paper investigates the effect of economic uncertainty on the performance of small and medium enterprises (SMEs) over the period 2007-2016. This paper also examines the effects of ownership structure on the relation between Economic Uncertainty and firm performance. We find that an increase in economic uncertainty is negatively associated with the performance of SMEs. Our results also reveal that increased economic uncertainty is associated with a lower performance level for state-owned SMEs, whereas foreign-owned SMEs can better mitigate the negative impact of on their performance than domestic-owned firms.

show abstract

“…The interrelationship between risks and bank efficiency has received much attention in banking literature, especially after the 1997 Asian financial crisis and the 2008 Great Recession (Phan et al, 2018;Asongu & Odhiambo, 2019). The hypotheses offer by Berger and DeYoung (1997) in their seminal paper explain the contradicting views on the effect of efficiency and risk in the banking sector.…”

Section: Introductionmentioning

confidence: 99%

The effects of efficiency on banks’ market risk: Empirical evidence from China

Ab-Hamid

Janor

Abdul-Rahman

et al. 2021

AAMJAF

View full text Add to dashboard Cite

This article investigates the effect of efficiencies on market risk using a sample of Chinese commercial banks from 2000 to 2015 using different measures of market risk; the Value at Risk (VaR) and Expected Shortfall (ES). The cost and profit efficiencies are estimated by the Stochastic Frontier Analysis (SFA) on the 12 biggest banks listed on the Shanghai Stock Exchange. In testing the effect between efficiency and market risk, this study applied four different models to uncover the relationship between VaR and ES as measures of market risk on cost and profit efficiencies. Utilising a panel data analysis, the results show that different banks efficiencies affect market risk measures differently. While bank cost efficiency reduces market risk, increase in profit efficiency increase market risk. The analysis in this study helps explain the unconvincing evidence of an inefficiencies-risk connection in the bank sector. Bank regulators and managers may need to focus on the cost and profit efficiencies-related initiatives to better manage the market risk. These findings provide bank managers with more understanding of bank risk and serve as an underpinning for bank supervision efforts aimed at strengthening the joint risk management of efficiency market risks.

show abstract

The effects of risks and environmental factors on bank cost efficiency: A study in East Asia and Pacific region

Cited by 7 publications

References 46 publications

Bank ownership concentration and stock price informativeness: International evidence

Bank ownership concentration and stock price informativeness: International evidence

Economic uncertainty, ownership structure and small and medium enterprises performance

The effects of efficiency on banks’ market risk: Empirical evidence from China

Contact Info

Product

Resources

About