The impact of bank capital on profitability and risk in Asian banking

Lee, Chien‐Chiang; Hsieh, Meng‐Fen

doi:10.1016/j.jimonfin.2012.04.013

Cited by 357 publications

(426 citation statements)

References 68 publications

(123 reference statements)

Supporting

Mentioning

346

Contrasting

Unclassified

Order By: Relevance

“…Empirical studies find that higher loan ratio is associated with higher interest margins, which suggest that the risk averse shareholders seeking greater gains to offset the high credit risk (Demirguc-Kunt & Huizingua, 1999;Flamini et al, 2009). Lee and Hsieh (2013) also find that the coefficients of the ratio of net loans to total assets are significantly positive on profititabilité (ROA and ROE) for 42 Asian countries.…”

Section: Dynamic Panel Data Analysismentioning

confidence: 67%

“…Macroeconomic and financial variables (GDP growth, interest rates, inflation, stock market volatility and loan growth), as established, among others, by Revell (1979), Molyneux and Thornton (1992) Demirguc-Kunt and Huizinga (2000), Beckmann (2007) Athanasoglou et al (2008), and Albertazzi and Gambacorta (2009), Lee and Hsieh (2013).…”

Section: Literature Reviewmentioning

confidence: 89%

“…The specific variables to banks namely capital ratios, asset quality, the size of the bank and the risk borne by the financial institution (Goddard, Molyneux, & Wilson, 2004;Kosmidou, Tanna, & Pasiouras, 2006;Athanasoglou, Brissimis, & Delis, 2008;Albertazzi & Gambacorta, 2009;Lee & Hsieh, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Determinants of Bank Profitability in Western European Countries Evidence from System GMM Estimates

Messai

Gallali

Jouini

2015

IBR

View full text Add to dashboard Cite

In this study we tried to identify the determinants of profitability for the countries of Western Europe during the distress period 2007-2011. Our sample includes 322 banks we subdivided the sample into two sub sample GIPSI countries affected by the crisis (Greece, Italy, Portugal, Spain and Ireland) and the other countries of Western Europe. We opted for several specific determinants in the bank as well as macroeconomic factors. To take account of the persistence of the benefit we used dynamic panel data (system GMM). Our results demonstrate that bank profitability depends on proxies considered and the situation of country.

show abstract

Section: Dynamic Panel Data Analysismentioning

confidence: 67%

Section: Literature Reviewmentioning

confidence: 89%

See 1 more Smart Citation

Determinants of Bank Profitability in Western European Countries Evidence from System GMM Estimates

Messai

Gallali

Jouini

2015

IBR

View full text Add to dashboard Cite

show abstract

“…In addition, the financial performance of commercial banks in Kenya is driven mainly by board and management decisions. Lee and Hsieh (2013) investigate the impacts of bank capital on profitability and risk for 42 Asian countries over the period [1994][1995][1996][1997][1998][1999][2000][2001][2002][2003][2004][2005][2006][2007][2008]. The results indicate the following: 1) banks in low-income countries have a higher capital effect on profitability; 2) banks investments have the lowest and positive capital effect on profitability; 3) banks in Middle Eastern countries own the highest and positive capital effect on profitability.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Internal and External Factors on Commercial Bank Profitability in Jordan

Jaber¹,

Alkhawaldeh²

2014

IJBM

View full text Add to dashboard Cite

The primary focus of this paper is to address the determinants of profitability on commercial banks in Jordan and to examine to what extent the performance of commercial banks operating in Jordan are affected by internal and external factors of companies listed on the Amman Stock Exchange for Jordanian Banks between 2007 and 2012. Previous studies focused only on internal factors, namely, the banks' specific characteristics in Jordan. This study includes not only the internal factors, but also external factors, namely, macroeconomic and financial market structures. The question is whether there are significant impacts that can be gained from internal and external factors on ROAA. The internal factors of capital adequacy, liquidity ratio, and size are found to be significant as well as all the external factors in these models. A third multivariate model which includes both internal and external factors is included in this study but not in previous studies. This model is found to be significant.As a result, this research gives deeper insights into determinants influencing the profitability of Jordanian commercial banks within the Jordanian environment.

show abstract

“…Berger (1995), Jacques and Nigro (1997), Demirgüç-Kunt and Huizinga (2000), Iannotta et al (2007) and Lee and Hsieh (2013) found a positive impact of capital on profitability. In this context, Goddard et al (2004) found that capital ratio is positively related to bank profitability of European banks (namely Denmark, France, Germany, Italy, Spain and the UK).…”

Section: Bank Capital and Profitabilitymentioning

confidence: 93%

Bank capital, profitability and risk in BRICS banking industry

Jabra

Mighri

Mansouri

2017

GBER

View full text Add to dashboard Cite

This paper analyses the relationship between bank capital, risk and profitability for the BRICS banking industry data from 2004 to 2012. We use a dynamic panel data model based on two-step GMM estimation procedure. For the sake of analysis, we differentiate between before and after crisis periods in order to highlight the impact of financial crisis on clearing up the above relationship. The main empirical results are summarised as follows: 1) capital and risk are significantly and negatively related, while capital and profitability are significantly and positively linked; 2) bank capital has the greatest positive impact on ROE measure of profitability for investment banks; 3) BRICS investment banks are likely associated with a more sound financial supervision and technology; 4) regulatory quality and institutional developments are dependent upon differences in profitability and risk; 5) Results also provide evidence that financial crisis affects considerably the relationship between capital, risk and profitability. 90W. Ben Jabra et al.

show abstract

The impact of bank capital on profitability and risk in Asian banking

Cited by 357 publications

References 68 publications

Determinants of Bank Profitability in Western European Countries Evidence from System GMM Estimates

Determinants of Bank Profitability in Western European Countries Evidence from System GMM Estimates

The Impact of Internal and External Factors on Commercial Bank Profitability in Jordan

Bank capital, profitability and risk in BRICS banking industry

Contact Info

Product

Resources

About