This article examines the extent of web utilization as a tool for the disclosure of corporate information on the website and exhibits the association between bank-specific attributes such as size, ...age, profitability, market discipline, listing status, leverage, foreign ownership, and type of sector in relation to the web disclosures of 87 public, private, and foreign sector Indian commercial banks. To achieve the objective, a checklist index of 143 items of information was developed. To examine the hypotheses of the study, a panel regression model was estimated on the data of 87 Indian commercial banks. Panel regression results indicate that size, market discipline (CAR), profitability, listing status, type of ownership, and type of sector have a significant relationship with the level of web disclosure, and banks are more likely to use the websites to disclose information. On the contrary, age, leverage, and market discipline (NPA) have insignificant relationship with the web-based disclosure level, and Indian banks have not shown any relationship with the disclosure score. The study will help the managers to meet the actual and potential informational needs of the investors; for the investor, it will help to assess investment decisions in a better way.
Various efforts are made to quantify and explain risk taking behavior including systematic risk with in financial institutions. This study is about determining various factors affecting commercial ...banks systematic risk in Pakistan. Sample included in the study consisted of twelve commercial banks listed in PSX (Pakistan Stock Exchange), these banks hold 81.3% market share of customer deposits. Data was collected from 2010 to 2016. The systematic risk for this study was calculated through stock beta (SB) and value at risk (VaR). To determine systematic risk the independent variables used are liquidity, firm size, asset quality, firm growth, return on assets, business mix, operating efficiency and loan growth. The result shows that liquidity, asset quality, return on assets and firm size have significant impact on systematic risk of banks in Pakistan.
In today’s corporate world, board diversity is a much-talked-about topic, and gender diversity is an important appearance of board diversity. Gender diversity refers to the existence of women on ...corporate boards of directors. This paper aimed to analyze the effect of board gender diversity on the performance of commercial banks in Bangladesh for the period 2017-2022. This study uses an instrumental variables regression analysis to investigate the relationship between board gender diversity and commercial banks' performance in Bangladesh. The results indicate that the inclusion of male and female directors is positively related to the financial performance of firms, as measured by the return on assets and the return on equity. Limited empirical studies have been conducted on the relationship between board gender diversity and commercial banks' financial performance in the emerging banking sector. Therefore, there is still no consensus regarding the link between board gender diversity and commercial banks' financial performance based on the mixed and sometimes inconsistent results in prior research. Therefore, this study extends the current literature in the context of Bangladesh, showing that a male and female board member can enhance the banks' financial performance.
Measuring and improving the efficiency of the Chinese commercial banking system has recently attracted increasing interest. Few studies, however, have adopted the two-stage network DEA to explore ...this issue in the Chinese context. Because the entire operational process of the banking system could be divided into two sub-processes (deposit producing and profit earning), the evaluation of the sub-process efficiencies could be used to assist in identifying the sources of the inefficiency of the entire banking system. In this study, we utilize the network DEA approach to disaggregate, evaluate and test the efficiencies of 16 major Chinese commercial banks during the third round of the Chinese banking reform period (2003–2011) with the variable returns to scale setting and the consideration of undesirable/bad output. The main findings of this study are as follows: (i) the two-stage DEA model is more effective than the conventional black box DEA model in identifying the inefficiency of banking system, and the inefficiency of the Chinese banking system primarily results from the inefficiency of its deposit producing sub-process; (ii) the overall efficiency of the Chinese banking system improves over the study period because of the reform; (iii) the state-owned commercial banks (SOBs) appear to be more overall efficient than the joint-stock commercial banks (JSBs) only in the pre-reform period, and the efficiency difference between the SOBs and the JSBs is reduced over the post-reform period; (iv) the disposal of non-performing loans (NPLs) from the Chinese banking system in general explains its efficiency improvement, and the joint-equity reform of the SOBs specifically increases their efficiencies.
•We utilize network DEA approach to evaluate efficiencies of the Chinese commercial banks.•Operational process of banking system is divided into deposit producing and profit earning sub-processes.•Evaluation of sub-process efficiencies is used to identify sources of inefficiency of whole banking system.•The Chinese banking reform improves its overall efficiency over the study period.•Efficiency differences between the state-owned and joint-stock commercial banks are reduced over the study period.
The study aimed to analyze the impact of entrepreneurial orientation in achieving organizational excellence through strategic flexibility. This research is a quantitative study. The population of ...this study consists of all managers in the upper and middle management at the Jordanian Commercial Banks. The study conducted a comprehensive survey, by using its population as a sample, which totals 1023 managers. The data collection tool is a questionnaire that consists of 29 items was developed. The results show that the level of availability of entrepreneurial orientation, organizational excellence, and strategic flexibility has reached a high degree at Jordanian Commercial Banks. Other findings show that entrepreneurial orientation in its combined dimensions (innovative entrepreneurial orientation, proactive entrepreneurial orientation, and risk-taking entrepreneurial orientation) has a statistically significant impact on achieving organizational excellence through strategic flexibility in Jordanian commercial banks. From the findings, the authors conclude that strategic flexibility plays a partial mediating role between entrepreneurial orientation (with all its dimensions) and organizational excellence. At the same time, strategic flexibility fails to play a mediator role between entrepreneurial orientation dimensions and organizational excellence.
The unfortunate price paid by the rapid growth of the global economy is the destruction of the ecological environment, yet financial development represented by the establishment of regional financial ...institutions may have a positive effect on environmental improvement. Based on data of 284 prefecture-level and above cities in China from 1998 to 2018, this research takes the establishment of China's city commercial banks (CCBs) as a quasi-natural experiment and constructs a difference-in-differences (DID) model to explore the impact of these regional banks on regional environmental pollution in China. The results are as follows. First, the establishment of CCBs significantly reduces regional pollution, and the pollution reduction effect of CCBs that have been established for several years and opened branches is more obvious. Second, the establishment of CCBs cuts environmental pollution by improving the innovation capacity, attracting more foreign direct investment (FDI), and upgrading the industrial structure. Third, the higher the economic strength, population size, and degree of marketization a city exhibits, the stronger is the pollution reduction effect of CCBs. Further analysis finds that the effect of CCBs in reducing pollution is higher in cities with strong economic power and large populations, which mainly relates to the innovation promoting effect. When cities have a high degree of marketization, the pollution reduction effect of CCBs generally comes from the innovation promoting effect and the FDI attracting effect. Therefore, cities should continue to improve the operating efficiency of regional banks, properly handle the relationship between regional banks and local governments, optimize the allocation of financial resources, and improve environmental quality through green finance.
•Take the establishment of China's City Commercial Banks (CCBs) as a quasi-natural experiment.•Construct a DID model to explore the impact of these regional banks on regional environmental pollution in China.•The establishment of CCBs significantly reduces regional pollution.•The establishment of CCBs cuts pollution by innovation improving, FDI attracting, and industrial structure upgrading.•The pollution reduction effect of CCBs is affected by the economic strength, population size, and marketization of a city.
To investigate the bidirectional relation between bank digital transformation and liquidity mismatch, this paper employ the empirical methodology of panel Granger causality tests to examine the ...relationship between digital transformation indicators and liquidity mismatch index, employing panel vector autoregression models, as well as a panel structural vector autoregression model, employing the data of 181 Chinese commercial banks in the period before COVID-19. We find a bidirectional causality between digital transformation and the liquidity mismatch index. An increase in the degree of digital transformation in commercial banks significantly reduces the bank liquidity mismatch index; furthermore, a decrease in the degree of the bank liquidity mismatch index results in an increase in bank digital transformation. The digital transformation enhances a bank's susceptibility to liquidity stress, although a bank suffering from higher liquidity mismatch prefers to promote digital transformation. Furthermore, we find that cognitive digital transformation is the primary driving factor of the bidirectional causality relationship and the relationship between digital transformation and the liquidity mismatch index is heterogeneous for banks with various ownership types.
•Examine the relationship between bank digital transformation and the liquidity mismatch index.•The digital transformation enhances a bank's susceptibility to liquidity stress.•A bank suffering from higher liquidity risk prefers to promote digital transformation.•Cognitive digital transformation is the primary driving factor of the bidirectional causality.•Bidirectional causality relationship is heterogeneous for banks with various ownership types.
The driving force of any country with market economy is the banking sector, which, as banking crises have shown, is not perfect and therefore needs more detailed study. This article from the series ...«Analysis of main indicators of the Anglo-Saxon banking system» is devoted to the study of the dynamics of main indicators of the American banking system for the period from 2000 to 2019 inclusive. Over the last decade, the number of commercial banks has decreased, including the United States (USA) ones. Based on data from the Federal Deposit Insurance Corporation (FDIC) with the separation of main studied indicators of the banking system and their detailed analysis, it was found that the financial crisis of 2008—2009 negatively affected the assets and liabilities of commercial banks, the dynamics of their net profit and increased the amount of outstanding loans. It is substantiated that despite the increase in private sector loans in the US, the latter do not show a high debt burden. It was also found that evidence of the consolidation process is an increase in specific gravity of the Top 5 largest banks in the country in total US banking assets. In this research, an attempt to study the effect of crisis in 2008-2009 indicators characterizing assets and liabilities of commercial banks in the United States has been made. Thus, to do this hypothesis to testify relationship of crisis in 2008—2009 and indicators characterizing assets and liabilities of commercial banks in the United States have to be tested. On the basis of the investigation, the conclusion was drawn that the dynamics of the main indicators of the American banking system for the period under study shows a positive trend, except for the financial crisis of 2008—2009. The number of banks is constantly decreasing, which is explained not so much by their liquidation as by their mergers and acquisitions. During the financial crisis of 2008, banks operated only with a profit of 10.2 billion dollars, which is 59.8% less than the previous year 2007. This is the lowest annual income since 1989. However, the significant increase in revenues in 2018 can be explained by the changes in taxation. At the same time, the share of outstanding loans has been declining every year since 2009, which is the evidence of prudent credit policy.
Keywords: Federal Reserve System, commercial banks, savings institutions, mergers and acquisitions of commercial banks, assets of commercial banks, liabilities of commercial banks.
JEL Classіfіcatіon G21, G34
Formulas: 1; fig.: 6; tabl.: 3; bibl.: 35.
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