The interrelationships between bank risk and charter value in ASIAN-5
This study examines the interrelationships between bank risk and charter value in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019 using a simultaneous equations model. The findings show a two-way relationship between bank risk and charter value. More specifically, the positive relations...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2022-12-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2022.2118514 |
| _version_ | 1798036075831099392 |
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| author | Dat T Nguyen Tu DQ Le |
| author_facet | Dat T Nguyen Tu DQ Le |
| author_sort | Dat T Nguyen |
| collection | DOAJ |
| description | This study examines the interrelationships between bank risk and charter value in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019 using a simultaneous equations model. The findings show a two-way relationship between bank risk and charter value. More specifically, the positive relationship between charter value and bank risk implies that banks with a more excellent charter value tend to pursue fast growth strategies and thus may face a higher risk. This positive link, however, only holds up to a certain level of charter value. On the other hand, the negative impact of bank risk on charter value argues that more risky banks tend to generate lower returns, thus reducing charter value. Additionally, a bidirectional relationship between them still holds when using an alternative measure of bank risk and controlling for the global financial crisis and governance indicators. Therefore, our findings provide critical implications for policymakers, managers, and academics. |
| first_indexed | 2024-04-11T21:07:21Z |
| format | Article |
| id | doaj.art-ee3c39cd884242bc85484dd264562b08 |
| institution | Directory Open Access Journal |
| issn | 1514-0326 1667-6726 |
| language | English |
| last_indexed | 2024-04-11T21:07:21Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj.art-ee3c39cd884242bc85484dd264562b082022-12-22T04:03:14ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262022-12-012511182119910.1080/15140326.2022.2118514The interrelationships between bank risk and charter value in ASIAN-5Dat T Nguyen0Tu DQ Le1University of Economics and Law, Ho Chi Minh City, VietnamUniversity of Economics and Law, Ho Chi Minh City, VietnamThis study examines the interrelationships between bank risk and charter value in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019 using a simultaneous equations model. The findings show a two-way relationship between bank risk and charter value. More specifically, the positive relationship between charter value and bank risk implies that banks with a more excellent charter value tend to pursue fast growth strategies and thus may face a higher risk. This positive link, however, only holds up to a certain level of charter value. On the other hand, the negative impact of bank risk on charter value argues that more risky banks tend to generate lower returns, thus reducing charter value. Additionally, a bidirectional relationship between them still holds when using an alternative measure of bank risk and controlling for the global financial crisis and governance indicators. Therefore, our findings provide critical implications for policymakers, managers, and academics.https://www.tandfonline.com/doi/10.1080/15140326.2022.2118514Bank risk-takingcharter valueASEAN-53SLSSEM |
| spellingShingle | Dat T Nguyen Tu DQ Le The interrelationships between bank risk and charter value in ASIAN-5 Journal of Applied Economics Bank risk-taking charter value ASEAN-5 3SLS SEM |
| title | The interrelationships between bank risk and charter value in ASIAN-5 |
| title_full | The interrelationships between bank risk and charter value in ASIAN-5 |
| title_fullStr | The interrelationships between bank risk and charter value in ASIAN-5 |
| title_full_unstemmed | The interrelationships between bank risk and charter value in ASIAN-5 |
| title_short | The interrelationships between bank risk and charter value in ASIAN-5 |
| title_sort | interrelationships between bank risk and charter value in asian 5 |
| topic | Bank risk-taking charter value ASEAN-5 3SLS SEM |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2022.2118514 |
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