Efficiency, innovation and competition: evidence from Vietnam, China and India

Nguyen, Thanh; Nghiem, Son; Roca, Eduardo; Sharma, Parmendra

doi:10.1007/s00181-015-1045-5

Cited by 26 publications

(19 citation statements)

References 39 publications

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“…The distance to the metafrontier is the technological gap of each bank, and this gap can be reduced via innovation. As the digitalization of financial services is the main driver of banking innovation (Das et al, 2018), we measure digitalization ( DIGI ijt ) as the change in the technological gap for each bank i in country j in year t (Bos et al, 2013; Fontin & Lin, 2019; Nguyen, Nghiem, Roca, & Sharma, 2016). To calculate this variable, we start by estimating a specific cost function for each country.…”

Section: Methodsmentioning

confidence: 99%

Using reputation for corporate sustainability to tackle banks digitalization challenges

2020

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The new landscape in the financial sector, characterized by fierce competition and the entrance of new technological players, has forced banks to speed up their digital transformation. However, for banks, digitalization entails challenges that can hinder the potential benefits and compromise their survival. In this context, we argue that the reputation generated by corporate sustainability (RCS) may offset these digitalization drawbacks. In particular, we find that the combination of RCS and digitalization facilitates in transforming the organizational nature of banks by simultaneously narrowing their boundaries and expanding their scope. We empirically confirm our hypotheses by analyzing a panel of 110 multinational banks from developed countries.

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Section: Methodsmentioning

confidence: 99%

Using reputation for corporate sustainability to tackle banks digitalization challenges

2020

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“…Some authors have investigated the opposite issue, which is what impact do competition and competitive conditions have on innovation? For example, Nguyen et al (2016) investigated the comparative levels of efficiency, innovation and competition and then examined the effect of competition on innovation of banks. The research presented in this paper covers many aspects of the potential impact of investments of innovation on the competitiveness of SMEs.…”

Section: Literature Reviewmentioning

confidence: 99%

Interactions between investments in innovation and SME competitiveness in the peripheral regions

Lewandowska¹

2021

Journal of International Studies

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“…In constrast,Meslier et al (2014) revealed that revenue diversification was associated with increased profits, and this benefit was greater for foreign banks compared to their domestic counterparts in the Philippines from 1999 to 2005.There are several studies into the performance of Vietnamese banks, including those byNguyen et al (2016),Nguyen et al (2014),Vu and Nahm (2013), andVu and Turnell (2010), but these studies focus only on estimating the efficiency and its determinants, of Vietnamese banks. In particular,Nguyen et al (2016) compared the cost efficiency of Vietnamese banks with that of Chinese and Indian banks, and found that Vietnamese banks are the least cost efficient, followed by Chinese banks and Indian banks Nguyen et al (2014). analysed the cost and profit efficiency of the Vietnamese banking sector over the period 1995 to 2011 taking into account the Asian and Global Financial crises.…”

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confidence: 99%

Management Behaviour in Vietnamese Commercial Banks

Nguyen

Nghiem

Roca

2016

Australian Economic Papers

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This study identifies managerial behaviour in Vietnamese banks between the years 2000 and 2014, based on the managerial framework of banks, as identified by Rossi et al. (2009). This framework is built on the interrelationships between efficiency, risk, capital and diversification. This study uses the Z-score to measure insolvency risk, the SFA to estimate cost efficiency, the ratio of total equity to total assets to capture bank capital, and the HHI index to measure the diversification of revenue and earning assets. The results from the 3SLS estimator indicate that revenue diversification has an insignificant impact on insolvency risk, capital ratio and cost efficiency, but earning assets diversification has a negative effect on these three variables, supporting "classical diversification", "economic capital" and "monitoring" behaviours. Moreover, a decline in cost efficiency leads to a rise in insolvency risk, implying "bad management" behaviour; an increase in risk results in a reduction in cost efficiency, indicating "bad luck" behaviour; and a reduction in capital ratio in the poorly capitalized banks leads to a growth in risk, suggesting "moral hazard" behaviour. The results remain strongly robust when using an alternative risk measurement (the loan loss provision ratio) and an alternative SFA model.

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Efficiency, innovation and competition: evidence from Vietnam, China and India

Cited by 26 publications

References 39 publications

Using reputation for corporate sustainability to tackle banks digitalization challenges

Using reputation for corporate sustainability to tackle banks digitalization challenges

Interactions between investments in innovation and SME competitiveness in the peripheral regions

Management Behaviour in Vietnamese Commercial Banks

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