Income diversification, bank stability and owners identity: international evidence from emerging economies

2017 ◽  
Vol 8 (1) ◽  
pp. 61 ◽  
Author(s):  
Naima Lassoued ◽  
Houda Sassi
Keyword(s):  
Emerging Economies ◽  
Bank Stability ◽  
Income Diversification ◽  
International Evidence

Sustainability and financial performance relationship: international evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ilker Yilmaz
Keyword(s):  
Financial Performance ◽  
Emerging Economies ◽  
Corporate Sustainability ◽  
Joint Effect ◽  
Business Practices ◽  
Content Type ◽  
Firm Financial Performance ◽  
International Evidence ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of the article is to examine the relationship of corporate sustainability to firm financial performance by presenting international data.Design/methodology/approachThe sample includes non-financial companies from five emerging economies known as BRICS for a five-year period of 2014–2018. The study uses the ESG (environmental, social, governance) scores from Sustainalytics database and financial data from company reports. Panel regression models are developed to figure out the relationship.FindingsThe results of the article revealed that there is a positively significant relationship between sustainability performance and financial performance. Total ESG score has produced significant results while the individual scores of environmental, social, and governance have produced insignificant results; implying that the components of total ESG score have a joint effect on the financial performance.Practical implicationsThe results of the article have important practical implications for companies. Engagement in sustainable business practices will help improve the financial performance. In addition, the companies should be active in all components of sustainability.Originality/valueThe article contributed empirical evidence for sustainability-financial performance relationship by using the international evidence from five emerging economies.

Risk and Performance in Emerging Economies: Do Bank Diversification and Financial Crisis Matter?

2020 ◽  
pp. 097215092091530
Author(s):  
Syed Moudud-Ul-Huq ◽  
Changjun Zheng ◽  
Anupam Das Gupta ◽  
S.K. Alamgir Hossain ◽  
Tanmay Biswas
Keyword(s):  
Financial Crisis ◽  
Emerging Economies ◽  
Global Financial Crisis ◽  
Generalized Method Of Moments ◽  
Portfolio Diversification ◽  
Income Diversification ◽  
Data Set ◽  
And Performance ◽  
Quadratic Effects ◽  
Unbalanced Panel Data

This study empirically investigates the quadratic effects of bank diversification, size and global financial crisis on risk-taking behaviour and performance. To unfold those effects, it uses the generalized method of moments (GMM) estimator and also uses an unbalanced panel data set on a large sample consisting of 542 bank-year observations between 2004 and 2015. The key results for emerging economies are as follows: (a) increasingly higher non-performing loan ratio makes the bank underperforming and unstable; (b) benefits derived from bank diversification are heterogeneous and confirms portfolio diversification theory; (c) small-sized banks of Bangladesh ensure higher advantage from portfolio mix over large banks; (d) large banks of South Africa achieve higher benefit from income diversification over small-sized banks; and finally, this study evidences that during the financial crisis, emerging economies can use portfolio diversification as a mechanism for controlling risk and improve bank performance. Mainly, emerging countries can rely on income diversification and should involve this mechanism with systematic risk a great care of.

Does Market Structure or Financial Deepening Impact the Banking Stability? International Evidence

2015 ◽  
Vol 15 (3) ◽  
pp. 353-359
Author(s):  
Shiow-Ying Wen ◽  
Jean Yu ◽  
Chin-Horng Chan
Keyword(s):  
Emerging Markets ◽  
Market Structure ◽  
Emerging Economies ◽  
Financial Deepening ◽  
International Evidence ◽  
Advanced Economies ◽  
Financial Depth ◽  
Banking Stability ◽  
Economic Transitions

The article explores the effects of financial depth and market structure on banking stability for 24 advanced economies and 18 emerging economies over the period of 2003–2010. We examine how commonality in banking stability varies from emerging markets to advanced nations. Our findings suggest possible explanations for what affects the banking stability with economic transitions on the dynamics evolving from emerging to advanced economies.

scholarly journals The effect of Lerner Index and income diversification on the general bank stability in Indonesia

2017 ◽  
Vol 12 (4) ◽  
pp. 56-64 ◽  
Author(s):  
Syahyunan ◽  
Iskandar Muda ◽  
Hasan Sakti Siregar ◽  
Isfenti Sadalia ◽  
Gerry Chandra
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Market Power ◽  
Stock Exchange ◽  
Bank Stability ◽  
Income Diversification ◽  
Data Analysis Technique ◽  
Lerner Index ◽  
Analysis Technique

The purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple Linear Regression. It can be concluded simultaneously that market power and revenue diversification have significant effect on bank stability and, partially, market power has a positive and significant effect on a bank stability. Income diversification has a positive non-significant effect on bank stability.

scholarly journals Bank maturity, income diversification, and bank stability

2021 ◽  
Vol 22 (6) ◽  
pp. 1492-1511
Author(s):  
Waqas Tariq ◽  
Muhammad Usman ◽  
Adeel Tariq ◽  
Robina Rashid ◽  
Junming Yin ◽  
...  
Keyword(s):  
Life Cycle ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Financial Statements ◽  
Internal Factor ◽  
Bank Stability ◽  
Income Diversification ◽  
Resource Based View ◽  
Research Findings ◽  
Dynamic Resource

The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the dynamic resource-based view and modern portfolio theory, this research examines the influence of a paramount internal factor i.e. bank life cycle or bank maturity on income diversification (ID) and stability consequence. Data were collected from the Pakistani’s commercial banks’ financial statements over the period 2005 to 2019. This research relied on the fixed effect and generalized method of moments (GMM) model to empirically test the proposed relationships. Core findings of the research reveal that bank maturity leads to enhanced ID and ID strongly influences the bank stability consequence, moreover, research findings are robust to use different measures of bank stability and GMM estimation techniques. To the authors’ best knowledge, this research is the first to report specific evidence about bank maturity as an internal driver of income diversification and stability and advances the literature seeking to understand the determinants of ID. This research also shows managers to recognize the importance of internal drivers to diversify effectively into non-interest income, and how such an effective ID translates into stability consequence.

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