The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam
This paper examines the effect of shadow banking activities on the performance and risk-taking of 339 Vietnamese nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE). Using manually gathered data on firms' shadow banking activities from 2009 to 2021, the expansion of shadow banki...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
IEECA
2024-02-01
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| Series: | Journal of Eastern European and Central Asian Research |
| Subjects: | |
| Online Access: | https://www.ieeca.org/journal/index.php/JEECAR/article/view/1407 |
| _version_ | 1797317291319230464 |
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| author | Thy Le Ngan Nguyen Thi Kim Thi Hoang Dieu |
| author_facet | Thy Le Ngan Nguyen Thi Kim Thi Hoang Dieu |
| author_sort | Thy Le |
| collection | DOAJ |
| description |
This paper examines the effect of shadow banking activities on the performance and risk-taking of 339 Vietnamese nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE). Using manually gathered data on firms' shadow banking activities from 2009 to 2021, the expansion of shadow banking is found to have a negative effect on the overall financial soundness of the securities companies, in particular negatively affecting performance and increasing the risk tolerance of companies. We present empirical findings about several aspects of shadow banking activities, including entrusted loans, entrusted investments, private lending, leasing, and commercial credit in this study. While the majority of shadow banking operations could have a negative impact on a firm's performance, we have discovered that commercial credit grants were crucial in reducing the COVID-19 pandemic's adverse effects on businesses, highlighting the need for financial stability in times of crisis. According to our results, the risk of shadow banking activities, which have consequences for policymakers and caution for nonfinancial enterprises, must be taken into consideration.
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| first_indexed | 2024-03-08T03:32:48Z |
| format | Article |
| id | doaj.art-f6f1f03eea7f4bf08f19d2434bed3cfa |
| institution | Directory Open Access Journal |
| issn | 2328-8272 2328-8280 |
| language | English |
| last_indexed | 2024-03-08T03:32:48Z |
| publishDate | 2024-02-01 |
| publisher | IEECA |
| record_format | Article |
| series | Journal of Eastern European and Central Asian Research |
| spelling | doaj.art-f6f1f03eea7f4bf08f19d2434bed3cfa2024-02-10T22:14:20ZengIEECAJournal of Eastern European and Central Asian Research2328-82722328-82802024-02-0111110.15549/jeecar.v11i1.1407The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from VietnamThy Le0https://orcid.org/0000-0002-0854-5967Ngan Nguyen Thi Kim1Thi Hoang Dieu2Ton Duc Thang University, Ho Chi Minh City, VietnamTon Duc Thang University, Ho Chi Minh City, VietnamTon Duc Thang University, Ho Chi Minh City, Vietnam This paper examines the effect of shadow banking activities on the performance and risk-taking of 339 Vietnamese nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE). Using manually gathered data on firms' shadow banking activities from 2009 to 2021, the expansion of shadow banking is found to have a negative effect on the overall financial soundness of the securities companies, in particular negatively affecting performance and increasing the risk tolerance of companies. We present empirical findings about several aspects of shadow banking activities, including entrusted loans, entrusted investments, private lending, leasing, and commercial credit in this study. While the majority of shadow banking operations could have a negative impact on a firm's performance, we have discovered that commercial credit grants were crucial in reducing the COVID-19 pandemic's adverse effects on businesses, highlighting the need for financial stability in times of crisis. According to our results, the risk of shadow banking activities, which have consequences for policymakers and caution for nonfinancial enterprises, must be taken into consideration. https://www.ieeca.org/journal/index.php/JEECAR/article/view/1407shadow banking activitiesentrusted loanprivate lendingcommercial creditfirm risk-taking |
| spellingShingle | Thy Le Ngan Nguyen Thi Kim Thi Hoang Dieu The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam Journal of Eastern European and Central Asian Research shadow banking activities entrusted loan private lending commercial credit firm risk-taking |
| title | The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam |
| title_full | The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam |
| title_fullStr | The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam |
| title_full_unstemmed | The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam |
| title_short | The impact of shadow banking on nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE) – Evidence from Vietnam |
| title_sort | impact of shadow banking on nonfinancial firms listed on the ho chi minh stock exchange hose evidence from vietnam |
| topic | shadow banking activities entrusted loan private lending commercial credit firm risk-taking |
| url | https://www.ieeca.org/journal/index.php/JEECAR/article/view/1407 |
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