scholarly journals A comparative analysis of the relationship among capital, risk and efficiency in the Eurozone and the U.S. banking institutions

2020 ◽  
Vol 10 (2) ◽  
pp. 8-20
Author(s):  
Dimitra Loukia Kolia ◽  
Simeon Papadopoulos
Keyword(s):  
Investment Banks ◽  
Bank Risk ◽  
Data Envelopment ◽  
Bank Capital ◽  
Managerial Behaviors ◽  
Banking Institutions ◽  
Three Stage Least Squares ◽  
The Impact ◽  
The Relationship ◽  
The U.S

In this paper, we investigate the relationship among capital, risk and efficiency in Eurozone and the U.S. banking institutions. We also assess the determinants of bank capital, risk and efficiency providing evidence of how the interrelationship and the managerial behaviors vary per type of bank (retail, commercial and investment banks). Concerning the methodology, we employ the input-oriented CCR model of data envelopment analysis developed by Charnes, Cooper, and Rhodes (1978) to estimate efficiency. We also apply the Z-score to calculate bank risk and the ratio of the value of total equity to total assets as an indicator of bank capital. Moreover, the relationship among capital, risk and efficiency of banking institutions is investigated by employing the three-stage least squares (3SLS) model, developed by Zellner and Theil (1962). Our main findings indicate that risk and capital are positively linked in the U.S. and Eurozone banks. The findings also suggest that efficiency has a negative and significant effect on bank risk in the majority of the banks of our sample. Additionally, we may conclude that the impact of risk and capital on efficiency levels is sensitive to the type of bank. As regards the effect of the variable efficiency on capital, the results are negative for all the banks in our sample.

scholarly journals The impact of capital ratio on lending of EU banks – the role of bank specialization and capitalization

Equilibrium ◽  
2016 ◽  
Vol 11 (1) ◽  
pp. 43 ◽  
Author(s):  
Małgorzata Olszak ◽  
Mateusz Pipień ◽  
Sylwia Roszkowska
Keyword(s):  
Commercial Banks ◽  
Robust Estimator ◽  
Bank Capital ◽  
Savings Banks ◽  
Cooperative Banks ◽  
Lending Activity ◽  
The Impact ◽  
The Relationship

In this paper we aim to find out whether bank specialization and bank capitalization affect the relationship between loans growth and capital ratio, both in expansions and in contractions. We hypothesize that the impact of bank capital on lending is relatively strong in cooperative banks and savings banks. We also expect that this effect is nonlinear, and is stronger in “low” capital banks than in “high” capital banks. In order to test our hypotheses, we apply the two-step GMM robust estimator for data spanning the years 1996–2011 on individual banks available in the Bankscope database. Our analysis shows that lending of poorly capitalized banks is more affected by capital ratio than lending of well-capitalized banks. Loans growth of cooperative and savings banks is more capital constrained that lending of commercial banks. Capital matters for the lending activity in contractions only in the case of savings and “low” capital banks.

scholarly journals Motivation and Academic Performance: An Inter-country Comparison

2020 ◽  
Vol 3 (3) ◽  
pp. p70
Author(s):  
Lewis R. Gale ◽  
Clifford Nowell
Keyword(s):  
Academic Achievement ◽  
Academic Performance ◽  
Positive Impact ◽  
Country Comparison ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Detrimental Impact ◽  
The U.S ◽  
External Motivation

The objective of this paper is to explore the impact of amotivation on academic performance and to test whether the impact of motivation on academic performance differs across students from China and the U.S. Using data from Chinese and U.S. students located in their home countries, we find amotivation negatively impacts academic performance of both groups of students. We also show that external motivation is positively associated with academic achievement. While these findings are consistent with results from previous studies, we extend the understanding on the relationship between motivation and academic performance by demonstrating that the magnitude of the detrimental impact of amotivation differs between students in the two countries and that the positive impact of higher levels of external motivation provides similar benefits for both groups of students.

Financial disclosure and performance of microfinance institutions

2014 ◽  
Vol 10 (3) ◽  
pp. 314-337 ◽  
Author(s):  
Shakil Quayes ◽  
Tanweer Hasan
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Least Squares Method ◽  
Financial Disclosure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Three Stage Least Squares ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between financial disclosure and the financial performance of microfinance institutions (MFIs). Design/methodology/approach – The paper utilizes ordinary least squares method to analyze the impact of disclosure on financial performance, an ordered probit model to investigate the possible effect of financial performance on disclosure and utilizes a three-stage least squares method to delineate the endogenous relationship between disclosure and financial performance of MFIs. Findings – The paper finds that better disclosure has a statistically significant positive impact on operational performance of MFIs; second, it also shows that improved financial performance results in better financial disclosure. Keeping the endogenous nature of the relationship between disclosure and performance, the paper uses a three-stage least squares method to show that disclosure and financial performance positively affect each other simultaneously. Research limitations/implications – The paper attempts to delineate a positive association between better disclosure on financial performance of MFIs, which can be used for developing a better disclosure policy by management, formulating more effective guidelines for disclosure by the stakeholders and mandating more appropriate laws and uniform disclosure practice by regulators. Originality/value – This is the first study that uses a large number of MFIs from 75 countries; second, it uses a uniform scale of designating a disclosure rating (assigned by MIX Market) to show the relationship between disclosure and performance. Finally, it uses three-stage least squares method to address the possible endogeneity between disclosure and performance.

The Role of Bank Liquidity and Bank Risk in Determining Bank Capital: Empirical Analysis of Asian Banking Industry

2020 ◽  
Vol 23 (03) ◽  
pp. 2050020 ◽  
Author(s):  
Faisal Abbas ◽  
Shahid Iqbal ◽  
Bilal Aziz
Keyword(s):  
Emerging Economies ◽  
Commercial Banks ◽  
Banking Industry ◽  
Negative Association ◽  
Bank Risk ◽  
Standard Errors ◽  
Bank Capital ◽  
Short Run ◽  
The Impact

This study provides new insights about how bank liquidity and bank risk have influenced the capital ratio of commercial banks operating in Asia’s emerging economies after the financial crisis 2007–2008. The data were collected for 377 banks from the Bankscope database covering the period of eight years between 2010 and 2017. The linear regression panel-corrected standard errors approach is used to find consistent estimators. The results of the overall sample and medium-sized banks regression revealed a positive relationship between bank liquidity and bank capital ratio, whereas the liquidity and bank capital ratio of large commercial banks have a negative association. The impact of liquidity on bank capital ratio is positive but insignificant in the case of smaller banks. The impact of bank risk on bank capital ratio is negative in the case of smaller and medium-sized banks, whereas the association is found positive in the case of larger and overall banks data results in short run, other things remain unchanged. The findings have valued information for researchers, analysts, managers, and policymakers.

scholarly journals Toward Sustainable Ferry Routes in Korea: Analysis of Operational Efficiency Considering Passenger Mobility Burdens

2020 ◽  
Vol 12 (21) ◽  
pp. 8819
Author(s):  
Thi Quynh Mai Pham ◽  
Gunwoo Lee ◽  
Hwayoung Kim
Keyword(s):  
High Efficiency ◽  
Principal Component ◽  
Analysis Data ◽  
Operational Efficiency ◽  
Vital Role ◽  
Maritime Transportation ◽  
Data Envelopment ◽  
Fuzzy C Means Clustering ◽  
The Impact ◽  
The Relationship

With its long coastline, and numerous inlets and offshore islands, coastal ferry industries play a vital role in Korean maritime transportation. This study focuses on the southwestern part of Korea, Mokpo (which has the most inhabited islands and the highest proportion of elderly island residents), and aims to evaluate the impact of passengers’ mobility burdens on the efficiency of ferry routes to achieve a better service for passengers. Integrated principal component analysis–data envelopment analysis and a fuzzy C-means clustering method were applied to analyze the efficiency of ferry routes in the Mokpo area. The efficiency results indicate that longer routes do not always achieve high-efficiency scores. The proportion of general passengers appears to influence the efficiency improvements of both general and subsidiary ferry routes. These findings can assist in better comprehending the relationship between passengers’ mobility burdens and ferry route efficiencies; this will enable the authorities and ferry management departments to develop appropriate policies and strategies and to reconstruct certain features of the inefficient routes, thereby increasing operational efficiency, reducing mobility burdens, and improving the convenience of ferry travel and sustainability of Korean passenger routes.

scholarly journals The Role of Investment Banking in M&A Operations: Empiric Pre and Post Lehman Evidence

2014 ◽  
Vol 1 (2) ◽  
pp. 51
Author(s):  
Vincenzo Capizzi ◽  
Renato Giovannini
Keyword(s):  
Investment Banking ◽  
Total Sample ◽  
Time Frame ◽  
Investment Banks ◽  
Measuring System ◽  
Lehman Brothers ◽  
Time Frames ◽  
The Impact ◽  
The Relationship

The role of investment banks in M&A operations is analyzed on the basis of empiric evidence. In particular, to point out the variations in the impact of the certification effect which can be ascribed to investment banks, the relationship between the value created for the shareholders in companies involved in special underwriting operations and the reputation of the banks appointed to act as advisors is examined. The analysis, which uses an original measuring system in order to assess and classify the reputation variable, focuses on transactions that have taken place between listed companies in two time frames, symmetrical to each other, specifically pre and post the Lehman Brothers bankruptcy. The total sample is composed of 229 transactions, divided into 161 and 68 observations, respectively pre and post Lehman. The result is that in the post Lehman period, unlike the preceding time frame, for which no significant empiric evidence is found, the wealth of the shareholders (of both targets and acquirers) is significantly influenced by the reputation of the investment banks which have acted as advisors. This indicates that, subsequent to the shock of the Lehman Brothers collapse, the certifying effect of the investment banks takes on an important role in the shareholders' choice.

scholarly journals Impact of credit risk (NPLs) and capital on liquidity risk of Malaysian banks

2017 ◽  
Author(s):  
Yaman Hajja
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Liquidity Risk ◽  
Dynamic Panel Data ◽  
Bank Capital ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

We investigate the relationship between bank liquidity risk and credit risk and the impact of bank capital on liquidity risk. Using 19 Malaysian commercial banks data over 2002-2011 and applying dynamic panel data GMM estimation after controlling for bank-specific and macroeconomic variables, empirical results document a positive relationship between liquidity and credit risk and a non-linear U-shaped relationship between bank capital and liquidity risk.

scholarly journals Assessment of the impact of labor productivity on the effectiveness of innovative activities in Kazakhstan and the Northwestern Federal District of Russia

2021 ◽  
Vol 101 (1) ◽  
pp. 103-113
Author(s):  
N. Roslyakova ◽  
Keyword(s):  
Labor Productivity ◽  
Working Hours ◽  
Federal District ◽  
Data Envelopment ◽  
Foreign Countries ◽  
Innovative Products ◽  
The Impact ◽  
The Relationship ◽  
Innovative Output ◽  
Improve State

Object: In many foreign countries, growth in labor productivity leads to a reduction in working hours. But these processes are not always proportional and depend on the correlation of social and economic priorities of states, on the conditions of general globalization and neoliberalization. The unfavorable ratio of the internal price proportions of some states and the low level of development of technics and technology act as obstacles to increasing the rate of economic growth. In such conditions, a reduction in working hours will inevitably lead to a reduction in the country's economic potential and the level of income of citizens. The purpose of this article is to study the nature of labor productivity and analyze the relationship between the proportions of labor productivity and the volume of production of innovative products in Russia and Kazakhstan as the largest EAEU states that determine development trends in the region. Methods: The collected data on the relationship between labor productivity and the volume of output of innovative products were analyzed using cluster analysis and nonparametric Data Envelopment Analysis (DEA). Findings: Labor productivity affects the level of innovative development and affects the overall economic development of individual regions and countries as a whole. The analysis of these processes is very important for the formation of state development policy. Therefore, this study examines the relationship between labor productivity and the volume of innovative products, as well as examines similar processes in certain regions of Russia and Kazakhstan. Conclusions: According to the results obtained, the following hypotheses were accepted: in Kazakhstan and Russia, labor productivity directly affects the innovative production of products. This influence is different in the regions of both countries. In Kazakhstan and Russia, there are regions that are similar in characteristics of the processes of the impact of labor productivity on innovative output, and for them similar measures to improve state policy are recommended.

Office of Strategic Services versus Special Operations Executive: Competition for the Italian Resistance, 1943–1945

2015 ◽  
Vol 17 (4) ◽  
pp. 41-58
Author(s):  
Tommaso Piffer
Keyword(s):  
World War Ii ◽  
Armed Forces ◽  
World War ◽  
Special Operations ◽  
History Of ◽  
Military Support ◽  
Office Of Strategic Services ◽  
The Impact ◽  
The Relationship ◽  
The U.S

This article explores the relationship between the British Special Operations Executive (SOE) and the U.S. Office of Strategic Services (OSS) in the Italian campaign during World War II. Drawing on recently declassified records, the article analyzes three issues that prevented satisfactory coordination between the two agencies and the impact those issues had on the effectiveness of the Allied military support given to the partisan movements: (1) the U.S. government's determination to maintain the independence of its agencies; (2) the inability of the Armed Forces Headquarters to impose its will on the reluctant subordinate levels of command; and (3) the relatively low priority given to the Italian resistance at the beginning of the campaign. The article contributes to recent studies on OSS and SOE liaisons and sheds additional light on an important turning point in the history of their relations.

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