scholarly journals European Bank’s Performance and Efficiency

2020 ◽  
Vol 13 (4) ◽  
pp. 67 ◽  
Author(s):  
Maria Elisabete Duarte Neves ◽  
Maria Do Castelo Gouveia ◽  
Catarina Alexandra Neves Proença
Keyword(s):  
Method Of Moments ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
Data Envelopment ◽  
Economic Stability ◽  
Banking Efficiency ◽  
Bank Profitability ◽  
Macroeconomic Conditions ◽  
Managerial Decisions ◽  
Method Of Moments Estimator

The research interest in bank profitability and efficiency is linked to the economic situation and an important issue for policymakers is to ensure economic stability. Nevertheless, managerial decisions and the environment could play a critical role in ensuring proper and efficient allocation of the resources. The purpose of this study is to understand which are the main factors that can influence the performance and efficiency of 94 commercial listed banks from Eurozone countries through a dynamic evaluation, in the period between 2011 and 2016. To achieve this aim, the generalized method of moments estimator technique is used to analyze the influence of some bank-specific characteristics, controlled by management, on the profitability as a measure of bank performance. After that, through the value-based data envelopment analysis (DEA) methodology, those factors are considered in determining the efficient banks. The results show that banking efficiency depends on set bank-specific characteristics and that the effect of determinants on efficiency differs, considering the macroeconomic conditions.

Determinants of bank profitability in Tunisia: does corruption matter?

2017 ◽  
Vol 20 (1) ◽  
pp. 70-78 ◽  
Author(s):  
Khemaies Bougatef
Keyword(s):  
Method Of Moments ◽  
Commercial Banks ◽  
Design Methodology ◽  
Generalized Method Of Moments ◽  
Surprising Result ◽  
Bank Profitability ◽  
Content Type ◽  
Method Of Moments Estimator ◽  
Asset Quality ◽  
High Level

Purpose In this paper, the author aims to examine the effect of perceived level of corruption on bank profitability. Design/methodology/approach The analysis is based on a balanced panel of ten commercial banks in Tunisia over the period 2003-2014. The author uses the generalized method of moments estimator technique described by Arellano and Bover (1995). Findings The author finds a positive relationship between the bank profitability and the corruption level. This surprising result suggests that Tunisian commercial banks take advantage from the high level of corruption. Regarding the others determinants, the findings reveal that bank profitability is positively related to capitalization level and liquidity. By contrast, a low asset quality is associated with low profitability. Originality/value The novelty of this study consists in the inclusion of the corruption level as a determinant of bank profitability.

scholarly journals NON-PERFORMING LOANS, CAPITAL ADEQUACY, LOAN LOSS PROVISION, AND BANK PROFITABILITY: A CASE OF LICENSED GHANAIAN BANKS

2020 ◽  
pp. 8-16
Author(s):  
Shuibin Gu ◽  
Ofori Charles ◽  
Takyi Kwabena Nsiah ◽  
Eric Dwomoh ◽  
Weveh-Wilson Benjamin
Keyword(s):  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Independent Study ◽  
Capital Adequacy ◽  
Least Squares Regression ◽  
Loan Loss ◽  
Bank Profitability ◽  
Loan Loss Provision ◽  
Capital Adequacy Ratio ◽  
Method Of Moments Estimator

This article explored the affiliation between a non-performing loan, capital adequacy ratio, loan loss provision, and bank profitability. The study was conducted on the licensed commercial banks in Ghana for the era 2014-2019. The two-step system generalized method of moments estimator was utilized to test the hypothesis developed for the study. The independent study variables altogether demonstrated a negative and immaterial association with the bank's profitability as proxied by ROA. A robustness test was conducted utilizing the Three-Stage Least-Squares Regression (3SLS); the outcome was analogous to that of the Two-Step System Generalized Method of Moments estimator. The study suggests that the Central Bank fortifies the capital requirement and keenly monitors banks' risk-taking conduct and banks undertaking due diligence procedures to moderate the shock of non-performing loans and loan loss provision in other to augment the profitability of universal banks. KEYWORDS: Non-Performing Loans, Capital Adequacy, Loan Loss Provision, Bank Profitability, GMM JEL Codes: E58, G21, G32

Using information from singletons in fixed-effects estimation: xtfesing

2020 ◽  
Vol 20 (4) ◽  
pp. 965-975
Author(s):  
Laura Magazzini ◽  
Randolph Luca Bruno ◽  
Marco Stampini
Keyword(s):  
Panel Data ◽  
Method Of Moments ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Panel Data Regression ◽  
Data Regression ◽  
Method Of Moments Estimator ◽  
Fixed Effects Estimation

In this article, we describe the xtfesing command. The command implements a generalized method of moments estimator that allows exploiting singleton information in fixed-effects panel-data regression as in Bruno, Magazzini, and Stampini (2020, Economics Letters 186: Article 108519).

Does Bank Profitability Stimulate Economic Growth in the Arab Region?

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Omar Ghazy Aziz
Keyword(s):  
Financial Development ◽  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Arab Countries ◽  
Return On Assets ◽  
Bank Profitability ◽  
Arab Region ◽  
Return On Equity ◽  
The Impact

AbstractThis study empirically investigates the impact of bank profitability, as a complementary measure of financial development, on growth in the Arab countries between 1985 and 2016. Using a generalized method of moments (GMM) estimation to test the impact of the bank profitability on growth, this study utilises two variables in the econometric model which are return on assets and return on equity. This study reveals that both variables of bank profitability are positive and significant. This confirms that the bank profitability, beside other financial development variables, has positive impact on the growth. This study points out some important implications based on this result.

Assessing the bank profitability in the MENA region

2014 ◽  
Vol 7 (3) ◽  
pp. 305-332 ◽  
Author(s):  
Rim Ben Selma Mokni ◽  
Houssem Rachdi
Keyword(s):  
Method Of Moments ◽  
North Africa ◽  
Banking Sector ◽  
Middle Eastern ◽  
Generalized Method Of Moments ◽  
Mena Region ◽  
Bank Profitability ◽  
Content Type ◽  
Conventional Banks ◽  
Econometric Technique

Purpose – Which of the banking stream is relatively more profitable in Middle Eastern and North Africa (MENA) region? Design/methodology/approach – The empirical study covers a sample of 15 conventional and 15 Islamic banks for the period 2002-2009.The authors estimate models using the generalized method of moments in system, of Blundell and Bond (1998). They exploit an up-to-date econometric technique which takes into consideration the issue of endogeneity of regressors to evaluate the comparative profitability of Islamic and conventional banks in the MENA region. Findings – Empirical analysis results show that the determinants’ significance varies between Islamic and conventional banks. Profitability seems to be quite persistent in the MENA region reflecting a higher degree of government intervention and may signal barriers to competition. Originality/value – The main interest is to develop a comprehensive model that integrates macroeconomic, industry-specific and bank-specific determinants. The paper makes comparison of the performance between two different banking systems in the MENA region. The authors consider a variable crisis to gain additional insights into the impacts of the financial crisis on MENA banking sector.

scholarly journals A Crook is a Crook . . . But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption

2015 ◽  
Vol 16 (4) ◽  
pp. 464-489 ◽  
Author(s):  
Eugen Dimant ◽  
Margarete Redlin ◽  
Tim Krieger
Keyword(s):  
Method Of Moments ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Destination Country ◽  
Estimation Methods ◽  
Econometric Methodology ◽  
Migration Flows ◽  
The Difference ◽  
Method Of Moments Estimator ◽  
The Impact

AbstractThis paper analyzes the impact of migration on destination-country corruption levels. Capitalizing on a comprehensive dataset consisting of annual immigration stocks of OECD countries from 207 countries of origin for the period 1984-2008, we explore different channels through which corruption might migrate. We employ different estimation methods using fixed effects and Tobit regressions in order to validate our findings. Moreover, we also address the issue of endogeneity by using the Difference- Generalized Method of Moments estimator. Independent of the econometric methodology, we consistently find that while general migration has an insignificant effect on the destination country’s corruption level, immigration from corruption-ridden origin countries boosts corruption in the destination country. Our findings provide a more profound understanding of the socioeconomic implications associated with migration flows.

scholarly journals FINANCING OF WORKING CAPITAL REQUIREMENT, FINANCIAL FLEXIBILITY AND SME PERFORMANCE

2016 ◽  
Vol 17 (6) ◽  
pp. 1189-1204 ◽  
Author(s):  
Sonia BAÑOS-CABALLERO ◽  
Pedro J. GARCÍA-TERUEL ◽  
Pedro MARTÍNEZ-SOLANO
Keyword(s):  
Firm Performance ◽  
Financial Crisis ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Capital Requirement ◽  
Working Capital ◽  
Financial Flexibility ◽  
Method Of Moments Estimator ◽  
Financing Performance ◽  
Financing Strategy

This paper investigates the relation between the financing strategies of working capital requirement and firm performance for the period 1997 to 2012. Using the two-step generalized method of moments estimator, we find that a suitable financing strategy can help firms improve their performance. Moreover, the results indicate that the working capital requirement financing-performance relation changes during a financial crisis. Finally, we also find that this relation depends on a firm’s financial flexibility. The findings are of interest for managers and researchers and show that managers should not only be concerned about investing in working capital requirement but also consider how this investment is to be financed. To the best of our knowledge, this is the first paper to analyse how the financing strategy selected by firms to finance their working capital requirement affects their performance.

Economic hardship and suicides

2017 ◽  
Vol 44 (10) ◽  
pp. 1348-1360 ◽  
Author(s):  
Marko Korhonen ◽  
Mikko Puhakka ◽  
Matti Viren
Keyword(s):  
Economic Theory ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
Economic Conditions ◽  
Simultaneous Estimation ◽  
Habit Persistence ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to investigate the determinants of aggregate suicides in 15 OECD countries during 1960-2010 using an economic model where changes in the welfare of consumers play the critical role for determining the number of suicides. Design/methodology/approach The hardship index based on economic theory is developed. In estimating the model, the authors apply the Pesaran et al. (2001) approach that allows the simultaneous estimation of the long-run and short-run parameters. To make sure that the authors’ findings are not specific to their method, the authors also use the generalized method of moments estimation in the panel set-up. Findings The authors found a relatively strong positive relationship between macroeconomic conditions, especially changes in aggregate consumption, and suicides. The relationship appears to be robust also in terms of the various control variables cited in the literature. The hardship index which is based on the habit persistence model of consumption predicts and explains the long-term behavior of suicides in most of the countries. Thus, the hardship index is a better economic explanatory variable than the unemployment rate or other proxies describing economic conditions. Originality/value Marrying the economic theory and econometric methods produces a reasonable empirical model to explain the connection between aggregate economic conditions and suicides.

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