To see the other types of publications on this topic, follow the link: Japanese banking system; Financial distress.
Journal articles on the topic 'Japanese banking system; Financial distress'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Japanese banking system; Financial distress.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Paule-Vianez, Jessica, Milagros Gutiérrez-Fernández, and José Luis Coca-Pérez. "Prediction of financial distress in the Spanish banking system." Applied Economic Analysis 28, no. 82 (November 21, 2019): 69–87. http://dx.doi.org/10.1108/aea-10-2019-0039.
Full textAbstract:
Purpose The purpose of this study is to construct the first short-term financial distress prediction model for the Spanish banking sector. Design/methodology/approach The concept of financial distress covers a range of different types of financial problems, in addition to bankruptcy, which is not common in the sector. The methodology used to predict financial problems was artificial neural networks using traditional financial variables according to the capital, assets, management, earnings, liquidity and sensibility system, as well as a series of macroeconomic variables, the impact of which has been proven in a number of studies. Findings The results obtained show that artificial neural networks are a highly suitable method for studying financial distress in Spanish credit institutions and for predicting all cases in which an entity has short-term financial problems. Originality/value This is the first work that tries to build a model of artificial neural networks to predict the financial distress in the Spanish banking system, grouping under the concept of financial distress, apart from bankruptcy, other financial problems that affect the viability of these entities.
2
Mansur, Alfan. "Measuring Systemic Risk on the Indonesia’s Banking System." Kajian Ekonomi dan Keuangan 2, no. 2 (September 6, 2018): 94–105. http://dx.doi.org/10.31685/kek.v2i2.325.
Full textAbstract:
Inter-connectedness is one important aspect in measuring the degree of systemic risk arising in the banking system. In this paper, this aspect besides the degree of commonality and volatility are measured using Principal Component Analysis (PCA), dynamic Granger causality tests and a Markov regime switching model. These measures can be used as leading indicators to detect pressures in the financial system, in particular the banking system. There is evidence that the inter-connectedness level together with degree of commonality and volatility among banks escalate substantially during the financial distress. It implies that less systemically important banks could become more important in the financial system during the abnormal times. Therefore, the list of systemically important banks as regulated in the Law on Prevention and Mitigation of Financial System Crisis (UU PPKSK) should be updated more frequently during the period of financial distress.
3
Cipollini, Andrea, and Franco Fiordelisi. "Economic value, competition and financial distress in the European banking system." Journal of Banking & Finance 36, no. 11 (November 2012): 3101–9. http://dx.doi.org/10.1016/j.jbankfin.2012.07.014.
Full text
4
Shubbar, Haider H. Dipheal. "Methodological Aspects of the Financial Stability of Iraq’s Banking System." Vestnik Tomskogo gosudarstvennogo universiteta. Ekonomika, no. 51 (2020): 208–18. http://dx.doi.org/10.17223/19988648/51/13.
Full textAbstract:
This article discusses the methodology the Central Bank of Iraq developed to assess the financial stability of commercial banks. This topic is relevant because, in modern economic conditions, the Central Bank of Iraq is forced to tighten requirements to credit institutions. Banks use not only their own funds, but also the funds of the population, legal entities, so they must be reliable and stable. Financial stability directly characterises the reliability of banks, so it must be strictly controlled. The Central Bank of Iraq has created its own methodology for assessing the financial stability of the banking sector. Its use should improve the quality of the created banking system development strategies and the financial monitoring of these strategies’ implementation. The Iraqi banking sector has a high level of capital adequacy, which helps to reduce the likelihood of financial distress in it.
5
Hoshi, Takeo, and Anil K. Kashyap. "Japan's Financial Crisis and Economic Stagnation." Journal of Economic Perspectives 18, no. 1 (February 1, 2004): 3–26. http://dx.doi.org/10.1257/089533004773563412.
Full textAbstract:
We survey the macroeconomic stagnation and financial problems in Japan. The financial sector assessment includes separate analyses of the commercial banks, the life insurance companies and the government's fiscal investment and loan program (FILP). We estimate that the Japanese taxpayer will have to pay at least another ¥100 trillion (20% of GDP) to cover financial system losses. We explain how the current dysfunctional Japanese banking system misallocates funds by keeping many insolvent firms in business. These inefficient firms crowd out potentially profitable ones and worsen macroeconomic stagnation. A sustained macroeconomic recovery requires serious restructuring aimed at stopping this cycle.
6
Polyzos, Stathis, Khadija Abdulrahman, and Apostolos Christopoulos. "Good management or good finances? An agent-based study on the causes of bank failure." Banks and Bank Systems 13, no. 3 (September 11, 2018): 95–105. http://dx.doi.org/10.21511/bbs.13(3).2018.09.
Full textAbstract:
The recent series of banking crises in the United States and in the Eurozone has resulted in numerous bank failures. In this paper, an agent-based model is employed to test for factors that determine bank viability in times of distress, focusing mainly on the endogenous risk of financial institutions. The authors test for the effects of both management and financial factors on the institutions’ ability to weather the storm during times when the banking system experiences distress. The agent-based simulation process is split into a setup period, when the simulation builds the structural characteristics of each bank, and a testing period, where these characteristics are tested against the final result, which is the bank’s viability. A risk estimation model is built and it is found that the proposed model is successful in predicting whether a particular bank can endure a stress testing situation. The empirical results confirm the relevant literature and put further emphasis on the policy implications regarding banking supervision and regulation, particularly in context of the Eurozone banking union.
7
Salleo, Carmelo, Alberto Grassi, and Constantinos Kyriakopoulos. "A Comprehensive Approach for Calculating Banking Sector Risks." International Journal of Financial Studies 8, no. 4 (November 10, 2020): 69. http://dx.doi.org/10.3390/ijfs8040069.
Full textAbstract:
We propose a comprehensive approach for the analysis of real economy and government sector risk transmission to the banking system and apply it in ten Euro-Area countries from 2005 to 2017. A flexible methodology is developed to model banks’ assets according to the risk-adjusted balance sheet of the counterparts. The use of distance to distress as a popular risk metric shows that Contingent Claims Analysis underestimates banks risk in stable periods and overstates it during crisis. Furthermore, the approach succeeds in detecting spillovers from households, non-financial corporations and sovereign sectors: for the countries examined the main source of instability comes from the Non-Financial Corporation sector and its increased assets volatility.
8
Egan, Mark, Ali Hortaçsu, and Gregor Matvos. "Deposit Competition and Financial Fragility: Evidence from the US Banking Sector." American Economic Review 107, no. 1 (January 1, 2017): 169–216. http://dx.doi.org/10.1257/aer.20150342.
Full textAbstract:
We develop a structural empirical model of the US banking sector. Insured depositors and run-prone uninsured depositors choose between differentiated banks. Banks compete for deposits and endogenously default. The estimated demand for uninsured deposits declines with banks' financial distress, which is not the case for insured deposits. We calibrate the supply side of the model. The calibrated model possesses multiple equilibria with bank-run features, suggesting that banks can be very fragile. We use our model to analyze proposed bank regulations. For example, our results suggest that a capital requirement below 18 percent can lead to significant instability in the banking system. (JEL E44, G01, G21, G28, G32)
9
Pastore, Patrizia, and Silvia Tommaso. "Italian industrial districts: influence of the governance on performance and financial distress of firms. An explorative study." Corporate Ownership and Control 11, no. 1 (2013): 962–91. http://dx.doi.org/10.22495/cocv11i1c11p7.
Full textAbstract:
The aim of the paper is to offer evidence about the influence of the governance quality of industrial districts (IDs) on performance and financial distress risks of firms belonging to IDs. By adopting a qualitative approach, the analysis was applied to 20 case studies of Italian IDs belonging to the Fashion and Mechanical industries (included within the National Observatory of Italian Districts). The investigation suggests that in the districts characterized by good governance and cooperative strategies the firms achieve better performances and improve their competitiveness. These conditions may facilitate the firms belonging to such districts in terms of lower borrowing costs, greater availability of credit, lower risk of financial distress and, therefore, fewer bankruptcies. Therefore, the study suggests that the district governance should be included as a further qualitative strategic variable in district firms’ financial distress prediction models and in the rating attribution processes by the banking system (or by specialized rating agencies).
10
Okina, Yuri. "Improving Japan's Financial System, with Emphasis on Reforming the Postal Savings Business." Asian Economic Papers 2, no. 1 (January 2003): 172–83. http://dx.doi.org/10.1162/153535103322022977.
Full textAbstract:
The crisis facing Japan's banking sector has been attributed to a wide range of factors: (1) the run-up and collapse of the bubble; (2) a lack of adequate supervision of financial institutions by the government; (3) the stagnation of the economy, because the Japanese growth model is no longer relevant; and (4) bad management of the banks. It is important to reform corporate governance in the real sector, not merely in the financial sector. It should also be recognized that Japan's financial system should reduce the size of the safety net provided by the government not only through the deposit insurance system, but also through the enormous postal savings business.
11
Alexander, Kern. "International Monetary Law: Issues for the New Millenium. Edited by Mario Giovanoli. [Oxford: Oxford University Press. 2000. li, 515 and (Index) 22 pp. Hardback. £125 net. ISBN 0–19–829923–0.]." Cambridge Law Journal 61, no. 3 (December 11, 2002): 715–38. http://dx.doi.org/10.1017/s0008197302291783.
Full textAbstract:
The financial crises that spread through East Asia, Russia and Latin America in the late 1990s have led to renewed calls for reform of the “international financial architecture” that would involve legal and institutional changes for the regulation of international financial markets. Since the end of the Bretton Woods system in the early 1970s, there have been over 100 financial crises while 132 of the 184 members of the International Monetary Fund have suffered varying degrees of banking fragility and distress. Although the term “banking crisis” and “financial crisis” are often used interchangeably, the IMF defines a financial crisis as a currency crisis, which is a speculative attack on the currency either causing a devaluation or forcing the authorities to spend large amounts of foreign exchange reserves to purchase its currency or to raise interest rates sharply. A banking crisis refers to actual or potential bank runs or failures, which induce banks to suspend the internal convertibility of their liabilities or to compel the government to intervene. Financial and banking crises often have systemic consequences, impairing markets’ ability to function effectively and may have major adverse effects on the economy. Many experts agree that adequate regulation at the domestic and international levels has not accompanied the progressive liberalisation of financial markets and, in particular, of short-term capital flows. It is a serious defect with the current system that the development of international monetary and financial law—at least in the areas of regulation and supervision—has only occurred haphazardly and principally as a result of a series of financial crises that began in the mid 1970s. Indeed, this book is a welcomed contribution to understanding many of the complex issues that arise in international monetary and financial law.
12
SOLA, LOURDES, CHRISTOPHER DA CUNHA BUENO GARMAN, and MOISÉS S. MARQUES. "Central banking reform and overcoming the moral hazard problem: the case of Brazil." Brazilian Journal of Political Economy 21, no. 3 (September 2001): 407–32. http://dx.doi.org/10.1590/0101-31572001-1252.
Full textAbstract:
ABSTRACT The implicit assumption that governments will bailout financial institutions under distress can generate negative incentives for the development of a sound financial system. This paper begins from the premise that these negative incentives, which create a situation of moral hazard, is essentially a political problem rather than a technical problem over generating correct institutional incentives. In the Brazilian case, we argue the current administration of Fernando Henrique Cardoso was only able to significantly reduce its moral hazard problem in the financial sector through distancing its political relationship with two important political actors: the private financial sector and state governors. The ability of the government to eliminate the implicit assumption of an eventual Central Bank bailout over public and private commercial banks was only made possible through a series of political conditions, which includes the end of hyper-inflation under the Real Plan, that reduced the government’s dependence upon those two important political actors.
13
Wojcicka, Karolina. "The Relationship Between Concentration of the Banking Sector in Poland and Its Soundness." e-Finanse 12, no. 4 (June 27, 2017): 43–57. http://dx.doi.org/10.1515/fiqf-2016-0007.
Full textAbstract:
Abstract Each year assets of the banking sector in Poland increase and thereby its significance in the real economy increases as well. At the same time, the ongoing consolidation process and changes in the ownership structure cause the Polish banking sector to play a substantial role not only on the local financial market, but on the European market as well and Polish banks are becoming more and more significant entities in their international banking groups (both in Europe and worldwide). However, the perspective of concentration increase and restriction of the Polish banking sector to a few operating banks (dominated by entities with foreign capital) is a source of distress in the context of its soundness - and due to its significance in the Polish economy - to the whole financial sector and real economy. The main goal of this article is to analyse the changes of concentration in the banking sector in Poland, including the ownership concentration, while attempting to determine its soundness (using the financial stability ratios method). The purpose of the study is also to prove a thesis that limited concentration with diversification of the ownership structure and its limited concentration favours thesoundness of a banking system. The study was carried out on the basis of an analysis of literature (both Polish and English) and comparative analysis (of the concentration of the Polish banking sector against other European countries). Qualitative analysis was complemented with quantitative research, based on analysis of statistical data.
14
Teranishi, Juro. "Review of Hoshi and Kashyap's Corporate Financing and Governance in Japan." Journal of Economic Literature 41, no. 2 (May 1, 2003): 566–74. http://dx.doi.org/10.1257/002205103765762770.
Full textAbstract:
Examining the development of the Japanese financial system since the Meiji era, Hoshi and Kashyap derive a number of interesting propositions on the evolution of bank-centered financing, its contribution to rapid growth, and its future transformation. They argue that the piecemeal approach to deregulation is one of the main reasons for the current banking crisis, and conclude that Japan will shift to a capital market-based financial system like the one in the United States or in prewar Japan. Hoshi and Kashyap's work makes an important contribution as a coherent long-term overview of Japan's bank-centered financial system.
15
O. Temile, Sunny, Lucky Izobo Enakirerhi, Ighosewe Enaibre Felix, and Dadang Prasetyo Jatmiko. "RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM OF NIGERIA’S BANKING SECTOR." Humanities & Social Sciences Reviews 7, no. 4 (October 6, 2019): 943–49. http://dx.doi.org/10.18510/hssr.2019.74128.
Full textAbstract:
Purpose: This study empirically observed the relationship between risk management and the internal control system of the banks in Nigeria.
Methodology: In order to achieve the main objective of this paper, we made use of data from the annual reports of fifteen commercial banks, covering a period of ten years (2007 – 2016). The study is empirical in nature and adopted a cross-sectional research design. Furthermore, the Panel Data Regression estimation technique was employed to estimate the specified model of the study.
Result: The results revealed the existence of a negative and significant relationship between credit risk and internal control. Liquidity risk which was measured using liquidity ratio has a positive and statistically significant relationship with internal control of banks in Nigeria. Based on the findings, the importance of strong and vibrant internal control policies across banks in Nigeria cannot be over-emphasized. This is because the more the internal control put in place, the greater the liquidity for banks to carry out their banking operations. On the other hand, the greater the internal control, the lesser the credit risk.
Applications: This research can be used for the universities, teachers, and students.
Novelty/Originality: Due to the recurring financial distress and eventual liquidation of some banks in Nigeria, this study is very necessary as it stresses the relevance and needs for effective internal control strategies in line with global best practices.
16
Ojukwu-Ogba, Nelson. "In Search of Financial Stability in Nigeria: From Legislation to Effective Regulation of Banks." African Journal of International and Comparative Law 25, no. 1 (February 2017): 20–46. http://dx.doi.org/10.3366/ajicl.2017.0180.
Full textAbstract:
The systemic importance of banks in any economy brings to the fore the inevitability of exploring ways of keeping banks not only strong but also within the safety level desired by depositors and financial managers. This is underscored by the invaluable and fundamental roles of these financial institutions in the maintenance of financial stability. The state of banking regulation in Nigeria, especially before the introduction of reforms in the sector, had given serious cause for concern. This observation is in light of serious illiquidity and systemic distress that was synonymous with the banking sector in Nigeria in the 1990s and even into the opening years of the twenty-first century. This article examines in detail the legal and institutional frameworks for banking regulation in Nigeria. It finds that the challenge of ineffective regulation of the banks in the country may not necessarily be associated with the dearth or non-comprehensiveness of statutes on the subject but rather borders on uncoordinated and ineffective enforcement mechanisms, coupled with policy inconsistency on the part of banking regulators. This situation engenders confusion, uncertainty and instability because prospective investors tend to be more hesitant, depositors shy away from saving with banks and banks tend to have to grapple with persistent illiquidity when the system is unpredictable. The article therefore advocates a policy shift from legislative review to effective enforcement of the existing laws regulating banks in Nigeria in order to grow these financial institutions into transparent, efficient, strong and globally competitive institutions.
17
Oliveira, Vitor Branco, and Clara Raposo. "How did regulation and market discipline influence banking distress in Europe?" Studies in Economics and Finance 37, no. 1 (September 23, 2019): 160–98. http://dx.doi.org/10.1108/sef-03-2019-0123.
Full textAbstract:
Purpose This paper aims to examine the relationship between regulation, market discipline and banking distress. Design/methodology/approach To address the empirical question put forward above, a multivariate logit model is applied to an international sample of 586 banks from 21 European countries in the period between 2000 and 2012. To give robustness to the results, different variables have been used to test the role played by market discipline and regulation as well as an alternative methodology known as duration/survival analysis. Findings It can be found that market discipline is a good indicator in signalling banking distress, that is, market discipline has penalized more banks with a higher likelihood of being in distress. Nonetheless, as broadly acknowledged, market discipline was not sufficient per se to avoid banking distress in Europe. With regard to regulation, this paper evidences that the adoption of other regulatory measures beyond the simple transposition of changes occurred in the EU Directives such as borrower-based measures and limits on pre-emptive exposures’ concentration, have contributed toward reducing the probability of distress of EU banks, showing that the introduction of this kind of measures was necessary and relevant. In addition, in this paper, it can be found that the NPL ratio, size, capital (including the well-known regulatory capital ratio, as well as the novel leverage ratio which discards the risk weights present in the former one) and liquidity are good indicators of banking distress which lead us to conclude that the new regulatory framework known as Basel III is on the right path to mitigate the probability that a new banking crisis similar to the last one takes place again. Research limitations/implications The first limitation regards the period of time chosen, that is, from 2000 to 2012, empirically neglecting, to some extent the important regulatory changes occurred after the aforementioned period. Nonetheless, as mentioned in the Data and Methodology section, the period ends in 2012 because it is difficult to flag a reasonable number of banks’ bailouts afterwards, to properly run the type of model used in this paper. The second limitation is the fact that the possible changes in the risk management and risk assessment by institutions and in the behaviour of investors, acknowledge as weak and inappropriate before the on-set of the global financial crisis, albeit very relevant, are not in the scope of this paper. Practical implications Despite the welcomed changes performed by regulators so far, some aspects are not complete yet and new areas deserve more empirical work and attention by the regulators and supervisors. Some of them stem directly from the results obtained from this paper such as the enhancement and a close monitoring of the current Pillar 3 framework the increase of the adoption of more targeted tools, in a more preemptive way, to counter the build-up of risks and the implementation of the leverage ratio. Originality/value In the aftermath of the financial crisis, the identification of leading indicators signalling emerging risks to the banking system has become a major priority to central banks and supervisory authorities. As a consequence, several studies have formulated the aim of analysing predictive characteristics of a set of macroeconomic variables, such as GDP Growth, Credit-to-GDP, Inflation, M2-to-GDP, among others. Other studies take a different perspective and complement the analysis with bank-specific risk indicators. Nonetheless the aforementioned studies do not consider the relationship between regulation and market discipline and banking distress. This is the gap the authors wanted to fill, and this assessment is the main contribution of this paper.
18
Afreen, Maria. "Building Vulnerability Predictive Indicator for the Banking Sector." International Journal of Finance & Banking Studies (2147-4486) 9, no. 3 (July 2, 2020): 01–14. http://dx.doi.org/10.20525/ijfbs.v9i3.704.
Full textAbstract:
Abstract
For risk and capital measurement, banks and other financial institutions need to meet forthcoming regulatory requirements. However, it is a serious issue to think that meeting regulatory requirements is the sole or even the most important reason for establishing a scientific, sound risk management system. To direct capital to activities with the best risk/reward ratios, managers need reliable risk measures. To stay within the limits imposed by readily available liquidity, by creditors, customers, and regulators, they need estimates of the size of potential losses. They need mechanisms to monitor positions and create incentives for prudent risk-taking by divisions and individuals. Risk measurement deals with the quantification of risk exposures, whereas risk management refers to the overall process by which managers satisfy these needs and follows to define a business strategy, to detect the risks to which are visible, quantifying those risks, and to control and understand the nature of the risks it faces. This research focuses on the economic vulnerability faced by banks in the financial sector in terms of the crises issues perspective of economic distress. Here, the methodology followed is based on the CAMELS framework variables. CAMELS is an abbreviation for: capital adequacy (C), asset (A), management (M), earnings (E), liquidity (L) and sensitivity to market risk (S). Based on these terminologies, a couple of variables should be selected, such as capital asset ratio, non-performing loan, cost income ratio, industry production index, non-interest income, reserve of gold, inflation, stock turnover ratio, real interest rate as component series and return on equity (RoE) as reference series to identify the turning points of economic vulnerability in the banking sector in Bangladesh. Thus, by forecasting the directional changes it could make policymakers aware of changes in the financial markets and banking economy and allow them to undertake preventive steps for remedial purposes. The constructed MPI should have a remarkable lead time of about not less than 6 months on average in case of prediction against the leading for reference Series.By mending the financial efficacy of investment banks. Bangladesh also should improve their corresponding banking system to implement these suggestions.
19
Yago, Kazuhiko. "Before the ‘locomotive’ runs: the impact of the 1973–1974 oil shock on Japan and the international financial system." Financial History Review 27, no. 3 (November 5, 2020): 418–35. http://dx.doi.org/10.1017/s0968565020000177.
Full textAbstract:
This article offers a Japanese perspective on the debate about the international financial system immediately after the first oil shock of 1973–4. Using archival records from the OECD and Bank of Japan, I analyze the three key policy issues discussed at the meetings of Working Party 3 (WP3) of the OECD: petrodollar recycling, balance-of-payments adjustments, and the management of global growth. Documents show that the Japanese approach to capital controls, exchange rate management, state-led growth orientation and international banking strategies was rather strengthened by the impact of the oil shock. By 1975 the OECD viewed Japan, together with Germany and the United States, as one of the ‘locomotives’ that would trigger a revival of economic growth in the industrialized West.
20
Melnic, Florentina. "The Financial Crisis Response. Comparative Analysis Between European Union And USA." Review of Economic and Business Studies 10, no. 1 (June 27, 2017): 129–55. http://dx.doi.org/10.1515/rebs-2017-0051.
Full textAbstract:
Abstract This paper reviews the measures adopted by central banks from the most important economies during the crisis and assess their effectiveness. It is important for policy makers to identify which measures were effective in limiting the financial system distress in order to adopt the appropiate measure during future crisis. In case of US, TARP was the most important program for banking system and it was effective in reducing banks’ contribution to systemic risk and banks’ default probabilities. But TARP also conducted to a reduction in loans growth and create incentives for higher risk-taking behavior. The unconventional monetary policies adopted by ECB during the period 2008- 2016 reduced the impact of the crisis on the European economy and achieved their objectives: to support banks’ funding and to increase lending to real economy (LTROs), to calm tensions from bond markets (CBPP, SMP, OMT), to support economic activity and to stabilize inflation rate (SMP, OMT, LTROs, APP).
21
Afreen, Maria. "Analysing the Return on Asset to Construct Foretelling Indicator for Bangladeshi Banking Sector." International Journal of Finance & Banking Studies (2147-4486) 9, no. 4 (October 13, 2020): 11–22. http://dx.doi.org/10.20525/ijfbs.v9i4.790.
Full textAbstract:
Financial institutions and banks are required to follow mechanisms to monitor the positions and create stimulas for sensible risk-taking by divisions a well as individuals. Risk measurement comprises of the quantification of risk exposures, whereas risk management demonstrates to the overall procedures by which managers fulfill these needs to identify the risks and recognise the category of the risks it faces. This research targerts on the economic instability faced by banks in financial arena in terms of the crises affairs in regard of economic distress. Here, the methodology followed is based on the CAMELS framework variables. CAMELS is a short form stands for: capital adequacy (C), asset (A), management (M), earnings (E), liquidity (L) and sensitivity to market risk (S). Based on these nomenclature, a couple of variables should be selected, such as capital asset ratio, cost income ratio, non-performing loan, non-interest income as component series and return on asset (ROA) as the reference series to identify turning points of economic volatility in banking sector of Bangladesh. Thus, by forecasting the directional deviations it could make financial policymakers aware of the changes at early stage in financial markets and banking industry and privilege them to undertake precautionary steps for preventive purposes. The constructed MPI should have a incredible lead time of about 5 to 7 months on an average in case of prediction against leading for the reference series. By renovating financial efficacy of venture banks, Bangladesh also should recover their subsequent banking system to execute these suggestions.
22
Jiang and Zhang. "Discovering Systemic Risks of China's Listed Banks by CoVaR Approach in the Digital Economy Era." Mathematics 8, no. 2 (February 2, 2020): 180. http://dx.doi.org/10.3390/math8020180.
Full textAbstract:
The world has entered the digital economy era. As a developing country, China's banking industry plays an important role in the financial industry, and its size ranks first in the world. Therefore, it is of great significance to study the systemic risks of China's banks in the digital economy era. We first compare the traditional indicator approach and the market-based approach theoretically, and Conditional Value at Risk (CoVaR) model, a market-based approach, is considered to be an efficient way to discover systemic risk in different perspectives. Based on static and dynamic models, we evaluate the contributions of sixteen China's listed banks to the systemic risk. Furthermore, we model bank exposures, extend the models by considering extreme circumstance, and incorporate the effects of Fintech and non-bank financial institutions. The results show the levels of systemic risks and the corresponding systemic importance rankings vary in different time periods. We find that the contributions of some small banks to systemic risk are even higher than some big banks during the sample period. Moreover, the big banks face less risks than most of the small banks when the banking system is in distress. We make suggestions for improving financial supervision and maintaining financial stability.
23
Barnhill, Theodore M., Panagiotis Papapanagiotou, and Marcos Rietti Souto. "Preemptive Strategies for the Assessment and Management of Financial System Risk Levels: An Application to Japan with Implications for Emerging Economies." Review of Pacific Basin Financial Markets and Policies 07, no. 01 (March 2004): 1–42. http://dx.doi.org/10.1142/s0219091504000056.
Full textAbstract:
We estimate the current potential default cost of the large amount of bad loans in the Japanese banking system to fail to range from 30 trillion yen to 45 trillion yen or higher. For many banks this would deplete at least 50% of their capital. However, it would also fix the loss and avoid potentially larger losses if weak credits continue to be supported. Using a simulation methodology, we also find that the assumed level of credit risk, equity investment, bank operating expenses, bank net interest margin, and the assumed future financial environments interact to determine future bank risk levels. If the negative financial and real estate market conditions of the recent past persist over the next three years, it is very likely that the major Japanese banks will suffer further large losses and exhaust their already low levels of capital. Alternatively, a return to a more positive economic and financial environment would moderate the risks and the cost of resolving the current problems. Nevertheless, under both scenarios, the risk of further bank failures appears to be substantial and additional large capital infusions will likely be needed to avoid losses by depositors. The implications of this analysis for emerging economies, center on the management and regulation of financial institutions in countries where financial market regulatory structures are in a state of change and asset price bubbles also occur.
24
Varmaz, Armin, Christian Fieberg, and Jörg Prokop. "The value relevance of “too-big-to-fail” guarantees." Journal of Risk Finance 16, no. 5 (November 16, 2015): 498–518. http://dx.doi.org/10.1108/jrf-06-2015-0056.
Full textAbstract:
Purpose – This paper aims to analyze the impact of conjectural “too-big-to-fail” (TBTF) guarantees on big and small US financial institutions’ stock prices during the 2008-2009 banking crisis. Design/methodology/approach – The paper analyzes shocks to stock market investors’ expectations of government aid to banks in distress and respective spillover effects using an event study approach. We focus on three major events in late 2008, namely, the Lehman bankruptcy, the Citigroup bailout and the first announcement of the Capital Purchase Program (CPP) by the US Government. Findings – The authors found significant differences in market reactions to the respective events between small and large banks. For both the Lehman and the CPP event, abnormal returns on big banks’ stocks are negative, while small banks’ stocks tend to generate positive abnormal returns. In contrast, large banks strongly outperform small banks in the case of the Citigroup bailout. Results for a control group of non-financial firms indicate that this behavior may be specific to the banking industry. The authors observed significant spillover effects to both competitors and non-competitors of Lehman and Citigroup, and concluded that while the Lehman event shook the widely held belief in an implicit TBTF subsidy to large banks, the TBTF doctrine was reinstated shortly thereafter. Originality/value – This paper shows that conjectural TBTF guarantees are priced in by equity investors. While government aid to large banks in distress may prevent negative effects on the stability of the financial system, it may also create negative externalities by putting small banks at a competitive disadvantage. The findings suggest that US and European regulators’ recent policy measures directed at establishing reliable bank resolution schemes should be a step in the right direction to level the playing field for small and large financial institutions.
25
Uchenna Okoye, Lawrence, Alexander Ehimare Omankhanlen, Johnson I. Okoh, Felix N. Ezeji, and Esther Ibileke. "Impact of corporate restructuring on the financial performance of commercial banks in Nigeria." Banks and Bank Systems 15, no. 1 (March 2, 2020): 42–50. http://dx.doi.org/10.21511/bbs.15(1).2020.05.
Full textAbstract:
The implementation of the 2004–2005 bank capital reform in Nigeria, introduced to deepen the financial capacity of the banking system, has led to a major restructuring of the banking sector. The reform required banks to increase their equity capital by about 1150 per cent (from two billion to twenty-five billion naira) within 18 months. Due to compliance challenges, the reform formed just twenty-five out of eighty-nine banks that previously existed. More than seventy-five per cent of the banks emerged through mergers and acquisitions. However, despite the massive increase in assets and deposit growth, episodes of bank distress have remained a recurring irritant in the country’s financial system. This study compares bank performance in the pre- and post-reform periods to determine the usefulness or efficacy of the capital reform in boosting bank performance based on panel analysis of data from five banks. The study covered the period 1996–2016. The generalized method of moments was used to evaluate the parameters of the model. The result of the random effects model shows a weak positive effect of total assets and deposit growth on bank performance in the pre-reform period. However, the post-reform assessment reveals that while profitability is significantly low in large-sized banks, it is higher in smaller banks. Given the above evidence, the study asserts that profit performance of banks is substantially linked to restructuring of the sector.
26
Giacometti, R., G. Torri, G. Farina, and M. E. De Giuli. "Risk attribution and interconnectedness in the EU via CDS data." Computational Management Science 17, no. 4 (December 2020): 549–67. http://dx.doi.org/10.1007/s10287-020-00385-2.
Full textAbstract:
AbstractThe global financial crisis in 2008, and the European sovereign debt crisis in 2010, highlighted how credit risk in banking sectors cannot be analysed from a uniquely micro-prudential perspective, focused on individual institutions, but it has instead to be studied and regulated from a macro-prudential perspective, considering the banking sector as a complex system. Traditional risk management tools often fail to account for the complexity of the interactions in a financial system, and rely on simplistic distributional assumptions. In recent years machine learning techniques have been increasingly used, incorporating tools such as text mining, sentiment analysis, and network models in the risk management processes of financial institutions and supervisors. Network theory applications in particular are increasingly popular, as they allow to better model the intertwined nature of financial systems. In this work we set up an analytical framework that allows to decompose the credit risk of banks and sovereign countries in the European Union according to systematic (system-wide and regional) components. Then, the non-systematic components of risk are studied using a network approach, and a simple stress-test framework is set up to identify the potential transmission channels of distress and risk spillovers. Results highlight a relevant component of credit risk that is not explained by common factors, but can still be a potential vehicle for the transmission of shocks. We also show that due to the properties of the network structure, the transmission of shocks applied to different institutions is quite diversified, both in terms of breadth and speed. Our work is useful to both regulators and financial institutions, thanks to its flexibility and its requirement of data that can be easily available.
27
Narayanan, Sudha, and Nirupam Mehrotra. "Loan Waivers and Bank Credit: Reflections on the Evidence and the Way Forward." Vikalpa: The Journal for Decision Makers 44, no. 4 (December 2019): 198–210. http://dx.doi.org/10.1177/0256090919896873.
Full textAbstract:
Executive Summary In the past decade, farm loan waivers have become a policy instrument to alleviate the financial distress of farmers. Despite agreement on the theoretical rationale for such debt forgiveness and its deep contextual relevance, many fear that in the long run, loan waivers might vitiate the repayment culture in the farm sector and undermine the financial status of banks. At present, critiques of large-scale loan waivers rest on limited evidence. This article reviews and synthesizes existing research and available data on the implications of loan waivers, especially for the flow of credit to farmers from banks. On most of the issues, such as farmer well-being and repayment culture, there seems to be mixed evidence on the consequences of debt waivers. Credible evidence on macroeconomic implications is limited, mainly on account of methodological challenges. This article concludes that even if loan waivers are an inappropriate strategy to support farm incomes in sustainable ways, the wide-ranging negative impacts on the formal banking sector are perhaps overstated. A more fruitful approach would be to focus on whether loan waivers can be designed to reduce the possible negative consequences for the formal banking system as well as for macroeconomic system. The article identifies three possible instruments—loan insurance products that will help banks cope with the consequences of large-scale defaults. Second, to explore the creation of a distress fund that will cushion state finances, should there be a need for debt waivers. Third, it would be useful to consider the operation of debt relief commissions to have an ongoing process for debt waivers.
28
Azevedo, Monique de Abreu, and Ivan Ricardo Gartner. "Liquidation and merger conditions in the banking industry: the Itaú-Unibanco case." Revista Contabilidade & Finanças 31, no. 82 (April 2020): 99–115. http://dx.doi.org/10.1590/1808-057x201908140.
Full textAbstract:
ABSTRACT This study’s main objective is to present the circumstances that signal an imminent commercial bank liquidation and the conditions in which mergers are advantageous for a potential acquirer. In addition, it applies the method in an empirical investigation within the context of the domestic banking industry. The research reveals new explanatory factors for liquidations and mergers between robust and insolvent banking institutions, such as bankruptcy costs and tax credits derived from a corporate union. The framework stands out for highlighting the role of creditor financial institutions participating in the open and interbank markets, which in the search to maximize their utility together with that of the shareholders have a decisive influence over the continuity or closure of the bank in crisis. The soundness of the financial system is an essential public good for society. Systemic financial crises cause significant costs for economic agents, such as a fall in production, increased unemployment, a rise in the fiscal deficit, and asset price instability. Efforts to achieve stability involve the regular functioning of banks. In this context, it is important to understand the circumstances under which banking institution distress can be solved by alternatives that are less costly for the treasury. Often, the research indicates the causes of disruptions to corporate activities; however, the explanatory variables and the tools used by bankruptcy prediction models are constantly being evaluated. Theories that elucidate the phenomenon are even scarcer. The paper’s result suggests the effectiveness of the method developed from the paradigmatic perspective of the field of economics and management, corroborating agency theory. The explanatory variables of bankruptcy and bank merger highlighted in this research can contribute to the elaboration of robust models to predict financial distress. The mathematical model of liquidation and merger was constructed from the viewpoint of an imperfect world where informational asymmetry and conflict of interests among shareholders, open and interbank market creditors, and bondholders (which includes depositors and holders of bonds issued by the bank) prevail. Bankruptcy maximizes shareholder and creditor utility if liquidation costs plus the value payable to the bondholders after liquidation are lower than the value they receive in the event of continuity. A merger is feasible for an acquirer if expected return plus tax benefits minus bondholder expenses is greater than the value payable to interbank market creditors. The method is applied to the merger between Itaú and Unibanco, considered a milestone in the process of consolidating the banking market in Brazil. This paper suggests the use of an algebraic model, based on agency theory, as an indicator of conditions for liquidations and bank mergers. The proposed approach was adequate for explaining the union between Unibanco and Itaú, which culminated in the largest private financial conglomerate in the Southern Hemisphere. Unibanco experienced the bankruptcy circumstances and there was evidence that Itaú’s tax benefits encouraged the merger. This article contributes to academic epistemology because it revisits the classical model, characterized by mathematical and theoretical robustness, and adjusts it to the specificities of banks. In addition to this methodological novelty, it applies it to an emblematic case, making it a useful tool for corporate decision-making and bank supervision, especially with regards to actions focused on financial stability.
29
Khanchel, Hanen. "Banking Risk Analysis in Tunisia: A Case Study of BTE Bank." Business and Management Research 8, no. 4 (January 16, 2020): 8. http://dx.doi.org/10.5430/bmr.v8n4p8.
Full textAbstract:
The banking activity represents a strategic sector of sustainable economic development in Tunisia. Hence, Tunisian banks have the status of financial institutions that earn profits by providing financial services to customers by dealing with risks. Therefore, lending decisions for these establishments are strategic as they can avoid the risk of loan recourse. However, the assessment of borrowing sanctions in Tunisian banks is based on credit rating models. Consequently, it is important to assess the riskiness of the banking sector in Tunisia. Indeed, Tunisian banks have kept voluminous data concerning their clienteles which can be considered as critical knowledge assets which can be processed via underwritten credit management tools. This tools denote a recent development of statistical techniques and promising tools of data mining and data processing. The current study attempts to develop the rating model as a decision support system to credit approval evaluation at Tunisian banks based on applicant’s characteristics; the proposed model is mainly based on quantitative and qualitative criteria can be used to help credit officers make better decisions when evaluating future loan applications. A real-world credit application of cases of both granted and rejected applications from BTE bank was employed to develop the rating model. The experimental outcomes showed that this approach area promising addition to the existing classification methods. It therefore requires a high responsibility and commitment of managers in the process of evaluation and decision-making to reduce both the risk of default and the risk of debt distress.
30
Rahman, Molla Ramizur, and Arun Kumar Misra. "Bank Competition Using Networks: A Study on an Emerging Economy." Journal of Risk and Financial Management 14, no. 9 (August 25, 2021): 402. http://dx.doi.org/10.3390/jrfm14090402.
Full textAbstract:
Interconnectedness among banks is a key distinguishing feature of the banking system. It helps mitigate liquidity problems but on the other hand, acts as a curse in propagating systemic risk at times of distress. Thus, as banks cannot function in isolation, this study uses the Contemporary Theory of Networks to examine banking competition in India for five distinct economic phases, emphasizing upon the Global Financial Crisis (GFC) and the ongoing COVID-19 pandemic. This paper proposes a Market Power Network Index (MPNI), which uses network parameters to measure banks’ market power. This network structure shows a formation of bank clusters that are involved in competition. Specifically, network properties, such as centroid, average path length, the distance of a node from the centroid, the total number of connections in the inter-bank market, and network density, do go on to explain banking competition. It is interesting to note that crisis periods witness a lower level of competition, with GFC bearing the least competition. The ongoing COVID-19 pandemic shows a lower trend, but it is of a higher magnitude than GFC. It was also found that big-sized, profitable, capital adequate, and public banks dominate the banking system. Notably, this study was conducted on a sample of 33 listed Indian banks from April 2008 to December 2020.
31
Khan, Mohammed Arshad, Preeti Roy, Saif Siddiqui, and Abdullah A. Alakkas. "Systemic Risk Assessment: Aggregated and Disaggregated Analysis on Selected Indian Banks." Complexity 2021 (July 8, 2021): 1–14. http://dx.doi.org/10.1155/2021/8360778.
Full textAbstract:
Exposure of the banking system to the Global Financial Crisis attracted attention to the study of riskiness and spillover. This paper studies the pattern of systemic risk and size effect in the Indian banking sector. Based on market capitalization, three public sector banks and three from the private sector were taken. Data are taken from the year 2007 to 2020. The analysis is done through quantile- CoVaR (Conditional Value at Risk) and TENET (Tail-Event-Driven Network) measure. State variables like Indian market volatility and global risk measures negatively influence the Indian banks’ returns. Liquidity risk is a crucial aspect of private banks. Public banks experience public confidence even in the distress period. Large banks like HDFC and SBI bank offer the highest degree of systemic risk contribution. The role of private banks in transmitting systemic risk has been intensifying since 2015. Small-sized banks like PNB and BOB have become significant receivers and transmitters of risk.
32
Bansal, Anushri. "Systemic Importance of Insurance Companies—An Empirical Analysis." International Finance and Banking 3, no. 1 (March 18, 2016): 44. http://dx.doi.org/10.5296/ifb.v3i1.9340.
Full textAbstract:
Insurance companies are increasingly being regulated under the assumption that, like banks, they pose systemic risk to the overall economy and especially the financial system. This analysis investigates this premise by comparing the systemic importance of insurance companies and the insurance industry with that of banks, brokers, real estate firms, and their respective industries. Empirical results suggest that intra-industry linkages exist among insurance firms, although they are comparatively weaker than those in banking and real estate. Moreover, systemic risks arising from the effects of distress in other economic sectors are lower for insurance companies—although not negligible. Given its size, systemic problems arising over time from the insurance industry would have a very disruptive macroeconomic impact.
33
Burra, Pravin, Pieter Juriaan De Jongh, Helgard Raubenheimer, Gary Van Vuuren, and Henco Wiid. "Implementing the countercyclical capital buffer in South Africa: Practical considerations." South African Journal of Economic and Management Sciences 18, no. 1 (March 4, 2015): 105–27. http://dx.doi.org/10.4102/sajems.v18i1.956.
Full textAbstract:
The Basel II regulatory framework significantly increased the resilience of the banking system, but proved ineffective in preventing the 2008/9 financial crisis. The subsequent introduction of Basel III aimed, inter alia, to supplement bank capital using buffers. The countercyclical buffer boosts existing minimum capital requirements when systemic risk surges are detected. Bolstering capital in favourable economic conditions cushions losses in unfavourable conditions, thereby addressing capital requirement procyclicality. This paper contains an overview of the countercyclical capital buffer and a critical discussion of its implementation as proposed in Basel III. Consequences of the buffer's introduction for South African banks are explored, and in particular, potential systemic risk indicator variables are identified that may be used by the South African Reserve Bank (SARB) as early warning indicators of imminent systemic financial distress. These indicators may be of value to the SARB, which could use them in taking decisions on the build-up and release of the countercyclical buffer for South African banks.
34
HURD, T. R. "BANK PANICS AND FIRE SALES, INSOLVENCY AND ILLIQUIDITY." International Journal of Theoretical and Applied Finance 21, no. 06 (September 2018): 1850040. http://dx.doi.org/10.1142/s0219024918500401.
Full textAbstract:
Banking system crises are complex events that in a short span of time can inflict extensive damage to banks themselves and to the external economy. The crisis literature has so far identified a number of distinct effects or channels that can propagate distress contagiously both directly within the banking network itself and indirectly, between the network and the external economy. These contagious effects, and the potential events that trigger these effects, can explain most aspects of past crises, and are thought to be likely to dominate future financial crises. Since the current international financial regulatory regime based on the Basel III Accord does a good job of ensuring that banks are resilient to such contagion effects taken one at a time, systemic risk theorists increasingly understand that future crises are likely to be dominated by the spillovers between distinct contagion channels. The present paper aims to provide a model for systemic risk that is comprehensive enough to include the important contagion channels identified in the literature. In such a model one can hope to understand the dangerous spillover effects that are expected to dominate future crises. To rein in the number and complexity of the modelling assumptions, two requirements are imposed, neither of which is yet well-known or established in the main stream of systemic risk research. The first, called stock-flow consistency, demands that the financial system follows a rigorous set of rules based on accounting principles. The second requirement, called asset-liability symmetry, implies that every proposed contagion channel has a dual channel obtained by interchanging assets and liabilities, and that these dual channel pairs have a symmetric mathematical representation.
35
Gonçalves, Carlos Alberto, Daniel Jardim Pardini, and Anthero de Moraes Meirelles. "Concentration of ownership and control as a governance mechanism in the Brazilian financial system." Corporate Ownership and Control 3, no. 1 (2005): 135–43. http://dx.doi.org/10.22495/cocv3i1c1p2.
Full textAbstract:
In this paper we analyse how ownership and control work in the main banks operating in Brazil. Our purpose is to identify the mechanisms through which investors try to secure the control of the corporations and the return of the capital invested. Unlike the Anglo-Saxon governance model, where the usual practice is to distribute the share capital among a large number of shareholders, or still, the Japanese or German models, with a massive participation of the banks in the control of the companies, recent research in the Brazilian companies listed in the stock exchange indicate a great volume of voting shares in the hands of a few shareholders. In the present study we seek to reveal whether this corporate governance mechanism also prevails in the Brazilian banking sector. The analysis comprised fifty of the biggest banks operating in Brazil, accounting for over 90% of the total assets of the Brazilian financial system. This study, besides revealing the levels of concentration of control and ownership of the leading Brazilian financial institutions, elucidates the corporate governance models featuring in the literature. It also explains how, in the management of the financial organizations, the investor, when making use of the mechanisms that secure their rights to ownership, guarantees the control and legal protection of his/her investment. The results of the research point to high levels of ownership concentration in the financial institutions in Brazil
36
SCHILTZ, MICHAEL. "An ‘ideal bank of issue’: the Banque Nationale de Belgique as a model for the Bank of Japan." Financial History Review 13, no. 2 (October 2006): 179–96. http://dx.doi.org/10.1017/s0968565006000230.
Full textAbstract:
It is established historical knowledge that the Bank of Japan (1882) was modelled upon the Banque Nationale de Belgique (1850). In this article, I point out how Japan's recurrent frustration with foreign dependence nurtured a social Darwinist view of international politics and finance: Japan's capability to survive in the world was believed to be dependent on its capability to assimilate foreign knowledge and institutions. In the field of finance, Matsukata Masayoshi, Japan's most enlightened financial policy maker at the time, turned to Belgium. I explain that Matsukata was dedicated to the emulation of Belgium's financial infrastructure, in which several public institutions would each be responsible for a specific area of the credit system. I indicate how efforts to adopt Belgian institutions and banking ideas proceeded meticuluously; yet, in the end, Japanese and Belgian finance developed along quite distinct pathways.
37
Khalfan, Twahir, and Jón Þór Sturluson. "Corporate finance approaches of Icelandic private firms after the financial crisis." Managerial Finance 44, no. 11 (November 12, 2018): 1274–91. http://dx.doi.org/10.1108/mf-05-2017-0167.
Full textAbstract:
Purpose The purpose of this paper is to provide insights about corporate finance decision-making of Icelandic private firms that have experienced a dramatic financial crisis in 2008–2010. It observes the capital budgeting methods and cost of capital techniques for private firms after a systemic financial crisis. Moreover, the paper identifies the main determinants of capital structure and capita rationing during this period. Design/methodology/approach This paper surveys corporate finance practices of 80 out of the 250 largest bank-centred private firms after the financial crisis. Findings Highly leveraged private firms that have experienced a dramatic financial crisis in 2008–2010 use payback and net present value techniques almost at a similar rate when assessing new investments. The sample firms largely rely on the cost of debt to determine the cost of invested capital. However, capital asset pricing model is the most popular method among the few sample firms that estimate the cost of equity. The need to maintain financial flexibility and cost associated with financial distress are the most influential factors regarding capital structures, whereas investment practices avoid capital rationing associated with the financial crisis. Research limitations/implications The limitations of the study are that it is country specific and absence of data over the period before the financial crisis that may have been applied to present more insight into this topic. Practical implications Sample firms fail to incorporate appropriate cost of capital methods and as the result they are likely to apply incorrect “hurdle rate” which could undervalue or overvalue new investments. This paper indicates that capital budgeting decisions by managers of the bank-centred Icelandic private firms who tend to be major shareholders do not reflect the tendency to expropriate outside and minority investors. Private firms that have emerged from the meltdown of the financial system highlighting the importance of “special” lending relationship in assisting bank-centred firms to avoid the severity of financial constraints. Originality/value This study employs a failure of the banking system to provide new knowledge about corporate finance practices of private firms after the financial crisis that have curtailed the access to both internal and external sources of capital.
38
Vodová, Pavla. "Liquidity Risk Sensitivity of Czech Commercial Banks." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 62, no. 2 (2014): 427–36. http://dx.doi.org/10.11118/actaun201462020427.
Full textAbstract:
The recent financial crisis has shown that a liquidity risk plays an important role in the current developed financial system. One of the efficient tools of liquidity risk management is stress testing which can show banks their potential vulnerability to liquidity shocks. The aim of this paper is therefore to measure the liquidity risk sensitivity of Czech commercial banks and to find out the most severe scenario and the most vulnerable bank. Our sample included significant part of the Czech banking sector; we used unconsolidated balance sheet data over the period from 2000 to 2011 which were obtained from annual reports of Czech banks. We have evaluated liquidity risk of each bank in the sample via six different liquidity ratios. Then we stressed these baseline values in three stress scenarios: run on a bank (simulated by a 20% withdrawal of deposits), confidence crisis on the interbank market (simulated by a withdrawal of 20% of interbank deposits) and use of committed loans by counterparties (simulated by a 5% increase of loans provided to nonbank clients). We measured the impact of all scenarios by relative change of liquidity ratios. The impact of modelled liquidity shocks differs among scenarios. The most serious liquidity problems would be caused by the first scenario – run on a bank. The negative influence of third scenario (use of committed loans) is less severe. The confidence crisis on the interbank market would not affect bank liquidity at all. The results also show that the severity of the impact of all scenarios worsens in periods of financial distress. We have also found that large and medium sized banks are most vulnerable to liquidity shocks, mainly to massive deposit withdrawals.
39
Gorchakova, Maria E. "Денежно-кредитная политика банка Японии в условиях глобального кризиса." Азиатско-Тихоокеанский регион: экономика, политика, право 55, no. 2 (2020): 30–38. http://dx.doi.org/10.24866/1813-3274/2020-2/30-38.
Full textAbstract:
Мировая банковская система непрерывно развивается и совершенствуется. Банковские системы отдельных стран модифицируются под влиянием интеграции финансовых отношений государств мира и глобализации в сфере банковского дела. Экономика Японии получила широкое развитие в период так называемого «экономического чуда», во время которого Япония стала второй страной в мире по общему объёму производства, занимая третье место по экспорту продукции. Быстрыми темпами развивается непроизводственный сектор Японии: сфера услуг, финансы, научно-исследовательская деятельность. Статья посвящена изучению деятельности центрального банка Японии – одного из ведущих мировых финансовых институтов. Выделены организационные принципы функционирования Банка Японии. Рассмотрены три руководящих принципа управления, используемых Банком Японии в процессе его деятельности для выполнения роли центрального банка и достижения таких целей, как поддержание ценовой стабильности и содействие экономическому росту в стране. Банк Японии, будучи первым звеном банковской системы страны, реализует денежно-кредитную политику, применяя комплекс мер, направленных на управление совокупным спросом через условия денежного рынка. В статье отражены инструменты денежно-кредитной политики, применяемые Банком Японии для обеспечения стабильности экономического развития страны. Особое внимание уделяется мерам, предпринятым Банком Японии в связи с кризисом, вызванным пандемией коронавируса COVID-19. Речь идёт о поддержке компаний, пострадавших от последствий коронавируса COVID-19, включая предоставление беспроцентных займов, выдачу гарантий по кредитам малому и среднему бизнесу, пострадавшему от пандемии, субсидии по переводу бизнеса в онлайн. Банк Японии планирует использовать пакет фискальных и монетарных антикризисных мер для поддержки экономики страны. Реализация мероприятий необходима для ограничения экономического ущерба от кризисных явлений, вызванных коронавирусом COVID-19, и сглаживания волатильности рынков. Актуальность исследования обусловлена тем, что в условиях финансовой глобализации необходимо учитывать опыт зарубежных банковских систем, особенно в ситуации мирового кризиса, затронувшего экономики всех стран. Ключевые слова: мировая банковская система, глобализация, банковское дело, Япония, центральный банк, денежно-кредитная политика, операции на открытом рынке, экономическая активность, ликвидность, COVID-19, финансовый кризис, антикризисные меры. The world banking system is constantly developing and improving. The banking systems of individual countries are modified under the influence of the integration of financial relations between the countries of the world and globalization in bank-ing. The Japanese economy was widely developed during the period of the so-called «economic miracle», during which Japan became the second country in the world in total production volume, ranking third in the export of products. The non-manufacturing sector of Japan is developing rapidly: the service sector, finance, and research. The article is devoted to the study of the activities of the Central Bank of Japan – one of the leading global financial institutions. The organizational principles of the Bank of Japan are highlighted. Three management principles used by the Bank of Japan in the course of its activities to fulfill the role of the central bank and achieve goals such as maintaining price stability and promoting economic growth in the country are considered. The Bank of Japan, being the first link in the country's banking system, implements monetary policy by applying a set of measures aimed at managing aggregate demand through money market conditions. The article reflects the monetary policy instruments used by the Bank of Japan to ensure the stability of the country's economic development. Particular attention is paid to the measures taken by the Bank of Japan in connection with the crisis caused by the pandemic of the coronavirus COVID-19. It is about supporting companies affected by the consequences of the coronavirus COVID-19, including providing interest-free loans, issuing guarantees for loans to small and medium-sized businesses affected by the pandemic, subsidies for transferring business online. The Bank of Japan plans to use a package of fiscal and monetary anti-crisis measures to support the country's economy. Implementation of measures is necessary to limit the economic damage from the crisis caused by the coronavirus COVID-19, and to smooth out the market volatility. The relevance of this study is due to the fact that in the context of financial globalization, it is necessary to take into account the experience of foreign banking systems, especially in the situation of the global crisis that affected the economies of all countries. Keywords: world banking system, globalization, banking, Japan, central bank, monetary policy, open market operations, economic activity, liquidity, COVID-19, financial crisis, anti-crisis measures.
40
Popoola, Oluwatoyin Muse Johnson. "Preface to the Third Issue of Indian-Pacific Journal of Accounting and Finance." Indian-Pacific Journal of Accounting and Finance 1, no. 3 (July 1, 2017): 1–3. http://dx.doi.org/10.52962/ipjaf.2017.1.3.20.
Full textAbstract:
I have the honour and privilege to welcome you to the Vol. 1 Issue 3 of Indian-Pacific Journal of Accounting and Finance. In this Issue 3, the journal emphasises on accounting information system, corporate governance and risk management, accounting regulation and financial reporting, and accounting.
In the first paper with the caption “Examining AIS Software and Co-operatives Performance in Malaysia”, Mr Mohd Hadzrami Harun Rasit (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia) and Dr Mohammad Azhar Ibrahim (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia) examine the use of Accounting Information System (AIS) software in the context of Malaysian co-operatives. The objectives of this paper are categorised into two, namely: to document the types of AIS software used by co-operatives, and to examine the relationship between the types of AIS software used and performance of the co-operatives. Furthermore, the paper draws on the resource-based view (RBV) to examine the gap issue. Findings from this study suggest that commercial and developed-in-house AIS software are mostly used by co-operatives. Also, the results reveal that co-operatives performance is not associated with the types of AIS software used by the co-operatives. The research provides valuable insights into the implementation of AIS among Malaysian co-operatives, which has received little attention thus far from academic, governmental and professional bodies.
In the second paper with the title “A Review of Financial Distress Prediction Models: Logistic Regression and Multivariate Discriminant Analysis”, Mr Ehsan ul Hassan (School of Economics, Finance and Banking, Universiti Utara Malaysia), Dr Zaemah Zainuddin (School of Economics, Finance and Banking, Universiti Utara Malaysia), Dr Sabariah Nordin (School of Economics, Finance and Banking, Universiti Utara Malaysia) present a review of literature for early prediction of financial bankruptcy. The study contributes to the formation of a systematic review of the literature regarding previous studies done in the field of bankruptcy. It addresses two most commonly used financial distress prediction models, that is, multivariate discriminant analysis and logit regression. Models are discussed with their advantages and disadvantages. After methodological review, the authors advance that logit regression model (LRM) might perhaps have more advantages than multivariate discriminant analysis (MDA) for better prediction of financial bankruptcy. However, accurate prediction of bankruptcy is beneficial to improve the regulation of companies, to form policies for companies and to take any precautionary measures if any crisis is about to come in future.
In the third paper captioned “Accounting Regulation and Financial Reporting Quality: Pre-and-Post IFRS Nigeria Evidence”, Philip Jehu (Federal University Kashere, Gombe, Nigeria) and Dr Mohammad Azhar Ibrahim (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia) examine whether accounting regulation is associated with financial reporting quality in Nigeria. The authors use accrual-based earnings management construct – abnormal accruals as a proxy for financial reporting quality. The study reveals some significant variation in abnormal accruals with the implementation of International financial reporting standards (IFRS) to regulate accounting practice. Similarly, the research finds that the control variables - firm size, leverage, and return on asset have significant effects on financial reporting quality. This study aligns and consistent with previous studies indicating the effectiveness of IFRS adoption in improving financial reporting quality. The study contributes to the discussion on IFRS adoption across reporting environments. Regulatory agencies in Nigeria might need to consider the combined effect of other corporate governance laws to ensure quality reporting. The study is limited by our sample (2009 - 2014), and by the proxies for both accounting regulation and financial reporting quality, the data of which was in most part handpicked. The authors recommend future research to consider perhaps testing the combined effect of other corporate governance variables like audit committees and board characteristics.
In the fourth paper entitled “Investigating Ownership Structure, Company Characteristics and Online Environmental Disclosure in Malaysia”, Dr. Ali Saleh Ahmed Al_arussi (Xiamen University Malaysia) and Dr. Redhwan Ahmed Al_dhamari (Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia) focus on environmental disclosure on the Internet and examine whether ownership structure and company characteristics have a significant association with the level of Internet environmental disclosure (IED) amongst Malaysian companies. Six variables – management ownership, government ownership, firm size, level of technology, industry type, and profitability – have been chosen to be examined in this study. Multiple regression analysis is used to test these relationships by analysing the data of 201 online annual reports on the websites of Malaysian companies. The results indicate that government ownership, firm size, level of technology and industry type are positively and significantly associated with IED; management ownership is negatively and significantly associated with IED, and profitability did not show a significant relationship. The results of this paper can be used by regulators to enhance and regulate online environmental reports as it is still voluntary based.
In the fifth paper with the title “Examining the Livelihood Assets and Sustainable Livelihoods among the Vulnerability Groups in Malaysia”, Dr Ahmad Zubir Ibrahim (School of Government, Universiti Utara Malaysia), Dr Kalthum Hassan (School of Government, Universiti Utara Malaysia), Dr Roslina Kamaruddin (School of Economics, Finance and Banking, Universiti Utara Malaysia), and Associate Prof. Dr. Abdul Rahim Anuar (School of International Studies, Universiti Utara Malaysia) investigate the relationship between livelihood assets and sustainable livelihoods. The study is in response to the livelihood vulnerability group such as paddy farmers, coastal fishers and rubber tappers in rural areas, which are susceptible to economic shock and climate change such as flood and drought. This condition will, no doubt, jeopardise the livelihoods of this group and hence the research gap. This study adopts quantitative study with stratified sampling method to select a total of 600 respondents from rural areas in Kedah and Kelantan. The findings confirm that physical asset, natural asset and social asset are significantly related to the achievement of sustainable livelihoods. Some recommendations have been highlighted to assist the concerned parties in improving sustainable livelihoods among the vulnerable group in rural areas.
As you read through this Vol. 1 Issue 3 of IPJAF, I would like to summarise that the success of the journal depends on your active participation and those of your colleagues and friends through submission of high-quality articles within the journal scope for review and publication.
I beseech our revered authors to enjoy the benefits IPJAF provides about mentoring nature of the unique review process that offers high quality and helpful reviews tailored to improving their manuscripts.
I acknowledge your support as we endeavour to make IPJAF the most authoritative journal on accounting and finance for the community of academic, professional, industry, society and government.
41
Gai Tobe, Ruoyan, and Nobuyuki Izumida. "Gender disparity in the individual attitude toward longevity among Japanese population: Findings from a national survey." PLOS ONE 16, no. 8 (August 18, 2021): e0254779. http://dx.doi.org/10.1371/journal.pone.0254779.
Full textAbstract:
The unprecedented population aging brings profound influences to the social values of longevity. The individual attitudes toward the expended life time deserves scrutiny, as it reflects the impacts of social networks and social welfare on people’s life and wellbeing. This study aims to examine whether and how gender disparity is affecting the individual anticipation to longevity among Japanese citizen. We used the dataset of National Survey on Social Security and Peoples Life implemented in 2017 to calculate the odds ratios (OR) of the individual anticipation to longevity. Besides gender, other demographic characteristics, physical and mental health, the experience of nursing care for the elderly, financial conditions and social networks are examined by performing the multilevel mixed-effects logistic regression analysis. The results indicate the robust effects of gender disparity on the individual aspiration for longevity. The proportion of those who inclined the positive statement on longevity was estimated to be 69.7% (95% CI: 68.6% - 70.9%) in the whole population, and 70.9% (95% CI: 69.4% - 72.5%) and 68.7% (95% CI: 67.1% - 70.2%) in male and female, respectively. Besides gender, independent factors significantly affecting the individual valuation of longevity include age, annual household income, the experience of nursing care, household saving, having a conversation with others and the availability of reliable partner(s) for relevant supports; while the common factors affecting the outcome variable were self-perceived health status and mental distress measured by K6. The interaction of gender and these significant factors were determined as well. In conclusion, with relevant representativeness and quality of data source, this analysis adds knowledge on gender disparity in the individual anticipation on longevity. The findings are suggestive to reform the social security system in the super aged society.
42
Mohd Isa, Mohd Yaziz, and Md Zabid Hj Abdul Rashid. "Regulatory capital funds and risk-sharing behavior in distressed financial conditions." Journal of Financial Reporting and Accounting 16, no. 1 (March 12, 2018): 197–216. http://dx.doi.org/10.1108/jfra-06-2015-0066.
Full textAbstract:
Purpose This paper aims to investigate the adequacy of regulatory capital funds through loss provisioning policies because of worsening credit quality associated with distressed financial conditions. A financial distress occurs when banks have difficulty in honoring financial commitments. This paper is expected to unveil how the provisioning mechanisms can address concerns associated with pro cyclicality of regulatory capital funds requirements, and how the banks behave in distressed financial conditions to share risks. The pro cyclicality of regulatory capital funds is the effect of various components of the financial system that aggravates the economic cycle such as during the expansion of the economy when banks are able to provide more loans and meet regulatory capital requirements with ease, while during the contraction of the economic cycle, can lead to deterioration of asset quality, and the resultant need to make loss provisions and recognize impairment. In turn, the situation puts further pressures on the capital requirements held by banks and their risk-sharing behavior. The paper analyzes a sample of Islamic banks in Malaysia. Design/methodology/approach By estimating credit risk-related information through loss provisioning policies, the paper uses an unbalanced panel data on all Islamic banks in the Association of Islamic Banking Institutions Malaysia from 2003 to 2014. The association consists of full-fledged Islamic banks and several foreign-owned entities. Findings The paper findings support that Islamic banks during observed period of distressed financial conditions were less discouraged to increase their regulatory capital funds to share risks. Intuitively, they were more encouraged to engage in risk-shifting behavior. Also, the risk-shifting behavior was found to have a significantly high potential in foreign-owned Islamic banks than in domestic Islamic banks. Research limitations/implications Although the study is based on a sample of Islamic banks in Malaysia, the findings suggest targeted interventions aimed at discouraging risk shifting or transfer of risks in an interest-free Islamic financing. Practical implications The outcome of this paper has practical implications for Islamic banks to build a buffer of capital funds to face downward pressures during heightened financial uncertainties while serving as protection to depositors. Moreover, this study has practical implications for shareholders to avail themselves the benefits of high investment accounts financing. The Islamic banks can continue to play their role in promoting inclusive growth, reducing inequality and accelerating poverty reduction. Social implications Although the current study is based on a sample of Islamic banks in Malaysia, the finding suggests that the extent of risk shifting was significantly more incentivized among the foreign-owned rather than the domestic Islamic banks. This information can be used to develop targeted interventions aimed at discouraging risk shifting or transfer of risks in an interest-free Islamic financing. Originality/value This paper is the first that investigates on adequacy of regulatory capital funds of Islamic banks through loss provisioning policies.
43
Kristanti, Farida Titik, Deannes Isynuwardhana, and Sri Rahayu. "Market concentration, diversification, and financial distress in the Indonesian banking system." Jurnal Keuangan dan Perbankan 23, no. 4 (October 30, 2019). http://dx.doi.org/10.26905/jkdp.v23i4.2693.
Full text
44
Mishraz, Nandita, Shruti Ashok, and Deepak Tandon. "Predicting Financial Distress in the Indian Banking Sector: A Comparative Study Between the Logistic Regression, LDA and ANN Models." Global Business Review, July 12, 2021, 097215092110267. http://dx.doi.org/10.1177/09721509211026785.
Full textAbstract:
Financial distress is a socially and economically significant issue that affects almost every firm across the world. Predicting financial distress in the banking industry can substantially aid in the reduction of losses and can help avoid misallocation of banks’ financial resources. Models for financial distress prediction of banks are being increasingly employed as important tools to identify early warning signals for the whole banking system. This study attempts to forecast the financial distress of commercial banks by developing a bankruptcy prediction model for banks. The sample size for the study is 75 Indian banks. Logistic, linear discriminant analysis (LDA) and artificial neural network (ANN) models have been applied on the last 5 years’ (2015–2019) data of these banks. Data analysis results reveal the logistic and LDA models exhibiting similar prediction accuracy. The results of the ANN prediction model exhibit better prediction accuracy. It is expected that the results of this study will be useful for managers, depositors, regulatory bodies and shareholders to better manage their interests in the banking sector of the country.
45
Cipollini, Andrea, and Franco Fiordelisi. "The Impact of Bank Concentration on Financial Distress: The Case of the European Banking System." SSRN Electronic Journal, 2009. http://dx.doi.org/10.2139/ssrn.1578718.
Full text
46
Fiordelisi, Franco, and Andrea Cipollini. "The Impact of Bank Concentration on Financial Distress: The Case of the European Banking System." SSRN Electronic Journal, 2009. http://dx.doi.org/10.2139/ssrn.1343441.
Full text
47
"Japanese Government's Reforms Fail to Assuage Financial Markets or Voters: Hashimoto Resigns After Election; Obuchi Chosen as Successor." Foreign Policy Bulletin 9, no. 5 (September 1998): 44–52. http://dx.doi.org/10.1017/s1052703600000046.
Full text
48
Barra, Cristian, and Roberto Zotti. "Financial stability and local economic development: the experience of Italian labour market areas." Empirical Economics, May 26, 2021. http://dx.doi.org/10.1007/s00181-021-02071-x.
Full textAbstract:
AbstractRegulators should ensure the smooth functioning of the system and promote regional development. Making the health of financial institutions is therefore a prerequisite for a sustainable economic development. This paper contributes to the literature on the relationship between the financial stability and growth within the area of one country. This implies that institutional, legal, and cultural factors are more adequately controlled for and financial markets are more accurately bounded. Using a rich sample of Italian banks over the 2001–2012 period, this paper addresses whether different measures of financial distress affect economic development of labour market areas in Italy. Results show that the financial stability has a positive effect on local economic development, robust to alternative variables capturing financial vulnerability. The presence of spatial effects is tested showing that better financial conditions of the banking system in neighbouring areas have a detrimental effect on an area’s growth.
49
Kablay, Hassan, and Victor Gumbo. "Bank Distress Prediction Model for Botswana." Asian Research Journal of Mathematics, March 31, 2021, 47–59. http://dx.doi.org/10.9734/arjom/2021/v17i230273.
Full textAbstract:
"Financial distress" has many dierent meanings but generally it is said to be a state of unhealthy condition. Botswana's banking system comprises of commercial, development and savings banks. None of these types of banks has actually failed but rather some of them have experienced some form of distress. The Bank of Botswana uses the CAMELS ratings to measure distress. The CAMELS ratings is based on a score between 1 and 5, with 1 being the best score and indicates strong performance, while 5 is the poorest rating and it indicates a high probability of bank failure and the need for immediate action to rectify the situation. For this study, we consider 1-3 to be good scores (non-distressed) and a bank to be distressed if it has a score of 4-5. Utilising secondary data sources for the period 2015 to 2019, inclusive, the study evaluated the drivers of bank distress in Botswana. The data was sourced from the audited nancial statements and annual reports of the 11 banks involved in the study. Panel data logistic regression was used for analysis. The results of the study showed that Non-Performing Loans (NPL) ratio and Return on Equity (ROE) were the best predictors of bank distress.
50
Hoang Thuy Bich Tram, Nguyen, and Tran Thi Thuy Linh. "Institutional Quality Matter and Vietnamese Corporate Debt Maturity." VNU Journal of Science: Economics and Business 33, no. 5E (December 25, 2017). http://dx.doi.org/10.25073/2588-1108/vnueab.4099.
Full textAbstract:
This article studies whether firm-level and country-level factors affect to the corporation's debt maturity in case of Vietnam or not. The paper adopts the balance panel data of 267 listed companies on two trading board HOSE and HNX in the period from 2008 to 2015, estimated by FEM, REM, 2SLS and GMM method. To intrinsic factors, research results show that financial leverage and default risk control have high positive statistical significance with the debt maturity, but tangible assets are lower than those factors. In addition, growth opportunities and company quality have negative impacts to the debt maturity. To external factors, the results point out that economic growth, stock market development and governmental regulation's efficiency demonstrate the positive relationship to the debt maturity with fairly low correlation levels. In spite of that, inflation rate, financial development, the rule of law, corruption control and the rights of creditor factors have negative correlations to the debt maturity.
Keywords
Debt maturity, long-term debt ratio, GMM system, firm-level factors, country-level factors
References
[1] Barclay, M., Smith, C., Jr., “The maturity structure of corporate debt”, Journal of Finance, 50 (1995), 609-631. [2] Kirch, G., Terra, P.R.S., “Determinants of corporate debt maturity in SouthAmerica: Do institutional quality and financial development matter?”, Journal ofCorporate Finance, 18 (2012) 4, 980-993.[3] Cai, K., Fairchild, R., Guney, Y., “Debt maturity structure of Chinese companies”, Pacific Basin Finance Journal, 16 (2008), 268-297.[4] Deesomsak, R., Paudyal, K. & Pescetto, G., “Debt Maturity Structure and the 1997 Asian Financial Crisis”, Journal of Multinational Financial Management ,19(2009) 1, 26-42. [5] Goyal, V.K., Wang, W., “Debt maturity and asymmetric information: Evidence from default risk changes”, Journal of Financial and Quantitative Analysis, 48 (2013), 789-817.[6] Tesfaye T. Lemma, Minga Negash, “Debt Maturity Choice of a Firm: Evidence from African Countries”, Journal of Business and Policy Research, 7 (2012) 2, 60-92[7] Sérgio Costaa, Luis M. S. Laureanoa, Raul M. S. Laureanoa, “The debt maturity of Portuguese SMEs: The aftermath of the 2008 financial crisis”, Social and Behavioral Sciences, 150 (2014 ), 172-181.[8] Myers, S. C., “The Capital Structure Puzzle”, Journal of Finance, 39 (1984), 575-592.[9] Lucas, D., and R. L. McDonald, R. L., “Equity Issues and Stock Price Dynamics”, Journal of Finance, 45 (1990),1019-1043.[10] Flannery, M. J., “Asymmetric Information and Risky Debt Maturity Choice”, Journal of Finance, 41 (1986), 19-37.[11] Douglas W. Diamond, “Monitoring and Reputation: The Choice between Bank Loans and Directly Placed Debt”, The Journal of Political Economy, 99 (1991) 4, 689-721.[12] Morris, “On corporate debt maturity strategies”, Journal of Finance, 31 (1976) 1, 29-37.[13] Myers, S. C.,“Determinants of Corporate Borrowings”, The Journal of Finance, 5 (1977), 147-175.[14] Amir Barnea, Robert A. Haugen, Lemma W. Senbet, “A rationale for debt maturity structure and call provisions in the agency theoretic framework”, The Journal of Finance, 35 (1980) 5, 1223-1234.[15] Jensen M. and W. Meckling, “Theory of the Firm: Managerial Behavior, Agency Costs, and Capital Structure”, Journal of Financial Economics, 3 (1976), 305-360.[16] Douglass C. North, “Institutions”, Journal of Economic Perspectives, 5 (1990) 1, 97-112.[17] Meyer, K. E., “Institutions, transaction costs and entry mode choice in Eastern Europe”, Journal of International Business Studies, 32 (2001), 357-67.[18] Barclay, M.J., Marx, L.M., Smith, C.W., “The joint determination of leverage and maturity”, Journal of Corporate Finance, 9 (2003), 149-167.[19] Johnson, S.A., “Debt maturity and the effects of growth opportunities and liquidity risk on leverage”, Review of Financial Studies, 16 (2003), 209-236.[20] Antoniou, A., Guney, Y., Paudyal, K., “The determinants of debt maturity structure: Evidence from France, Germany and the UK”, European Financial Management, 12 (2006) 2, 161-194.[21] Lopez-Gracia, J., Mestre-Barbera, R., “Tax effect on Spanish SME optimum debt maturity structure”, Journal of Business Research, 64 (2011), 649-65.[22] Custódio, C., Ferreira, A., Laureano, L., “Why are US firms using more short-term debt?”, Journal of Financial Economics, 108 (2013) 1, 182-212.[23] El Ghoul, S., Guedhami, O., Pittman, J., Rizeanu, S., “Cross-country evidence on the importance of auditor choice to corporate debt maturity”, Contemporary Accounting Research (2014).[24] Belkhir, M., Ben-Nasr, H., Boubaker, S., “Labor protection and corporate debt maturity: International evidence”, UAE University working paper (2014).[25] Stephan, A., Talavera,O., Tsapin, A., “Corporate debt maturity choice in emerging financial markets”, Quarterly Review of Economics and Finance, 51 (2011), 141-151.[26] Bae, K. H., Goyal, V. K., “Creditor rights, enforcement, and bank loans”, The Journal of Finance, 64 (2009) 2, 823-860.[27] Gonzalez-Mendez, V.M., “Determinants of debt maturity structure across firm size”, Spanish Journal of Finance and Accounting, 17 (2013), 187-209.[28] Mark Hoven Stohs, David C. Mauer, “The Determinants of Corporate Debt Maturity Structure”, Journal of Business, 69 (1996) 3.[29] Scherr, F. C. and Hulburt, H. M., “The Debt Maturity Structure of Small Firms”, Financial Management, 1 (2001), 85-111.[30] Magri, S., “Debt maturity of Italian firms”, Journal of Money, Credit and Banking, 42 2010, 443-463.[31] Oman, C., Köksal, B., “Debt maturity across firm types: Evidence from a major developing economy”, Emerging Markets Review, 30 (2017), 169-199.[32] Awartani, B., Belkhir, M., Boubaker, S., Maghyereh, A., “Corporate debt maturity in the MENA region: Does institutional quality matter?”, International Review of Financial Analysis, 46 (2016), 309-325.[33] Antonios Antoniou, Yilmaz Guney, Krishna Paudyal, The Determinants of Debt Maturity Structure: Evidence from France, Germany and the UK, European Financial Management, 12 (2006) 2, 161-194.[34] Antoniou, A., Guney, Y., Paudyal, K., “The determinants of capital structure: Capital market-oriented versus bank-oriented institutions”, Journal of Financial and Quantitative Analysis, 43 (2008) 1, 59-92.[35] Fan, J. P., Titman, S., Twite, G., “An international comparison of capital structure and debt maturity choices”, Journal of Financial and Quantitative Analysis, 47 (2012) 1, 23.[36] Garcia-Teruel P, Martinez-Solano P., “Short-term debt in Spanish SMEs”, Int Small Bussiness Journal, 25 (2007), 579-602.[37] Giannetti, M., “Do better institutions mitigate agency problems? Evidence fromcorporate finance choices”, Journal of Financial and Quantitative Analysis, 38 (2003) 1, 185-212.[38] Diamond, W., “Presidential address, committing to commit: Short-term debtwhen enforcement is costly”, The Journal of Finance, 59 (2004) 4, 1447-1479.[39] Qian, J., Strahan, E., “How laws and institutions shape financial contracts: The case of bank loans”, The Journal of Finance, 62 (2007) 6, 2803-2834.[40] Aris, “Legal systems, capital structure, and debt maturity in developing countries”, Corp. Gov., 24 (2016), 130-144.[41] Cuneyt Orman, Bülent Köksal, “Debt Maturity across Firm Types: Evidence from a Major Developing Economy”, Emerging Markets Review, 30 (2016). [42] Zheng, X., El Ghoul, S., Guedhami, O., Kwok, C., “National culture and corporate debt maturity”, Journal of Banking & Finance, 36 (2012) 2, 468-488.[43] Jun Qian, Philip E. Strahan, “How Laws and Institutions Shape Financial Contracts: The Case of Bank Loans”, The Journal of Finance, 62 (2007) 6, 2803-2834.[44] Vig, V., “Access to collateral and corporate debt structure: Evidence from a natural experiment”, The Journal of Finance, 68 (2013) 3, 881-928.[45] Cho, S., El Ghoul, S., Guedhami, O., Suh, J., “Creditor rights and capital structure: Evidence from international data”, Journal of Corporate Finance, 25 (2014), 40-60.[46] Mark Hoven Stohs, David C Mauer, “The Determinants of Corporate Debt Maturity Structure”, The Journal of Business, 69 (1996) 3, 279-312. [47] Kane, A., A. J. Marcus, R. L. McDonald, “Debt Policy and the Rate of Return Premium to Leverage”, The Journal of Financial and Quantitative Analysis, 20 (1985) 4, 479-499.[48] E. I. Altman, “Corporate financial distress: A complete guide to predicting, avoiding, and dealing with bankruptcy”, New York: John Wiley & Sons, 1983. [49] Mackie-Mason, Jeffrey K., “Do Taxes Affect Corporate Financing Decisions?”, Journal of Finance, 45 (1990) 5, 1471-1493.[50] Djankov, S., C. McLiesh, and A. Shleifer, “Private credit in 129 countries”, Journal of Financial Economics, 84 (2007), 299-329.