Expected government support and bank risk-taking: Evidence from China

Bai, Haifeng; Ba, Shusong; Huang, Wenli; Hu, Wentao

doi:10.1016/j.frl.2019.101328

Cited by 14 publications

(6 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…(1) with the key explanatory and control variables lagged on period along with time and bank fixed effects to mitigate possible endogeneity and omitted bias (c.f. Bai et al, 2019). Moreover, each continuous variable is winsorized at its 1 st and 99 th percentiles before running our regressions to guard against the potential effects of outliers.…”

Section: Methodology and Datamentioning

confidence: 99%

Executive Compensation and Risk-Taking of Chinese Banks

Huang

2020

SSRN Journal

View full text Add to dashboard Cite

We document a significantly positive relationship between executive compensation and risk-taking of Chinese listed banks over the 2007-2018 period. The finding is robust to the risk measures (Z-score, systematic risk and stock return volatility) used, the way to calculate executive compensation, and model specifications as well as estimation techniques. Further analysis suggests that bank past performance (captured by return on equity) strongly moderates the relationship between executive compensation and risk-taking. We also find a modest U-shaped association of bank Z-score with executive compensation. Our study appears to support the regulation on executive compensation for the sake of bank stability.

show abstract

Section: Methodology and Datamentioning

confidence: 99%

Executive Compensation and Risk-Taking of Chinese Banks

Huang

2020

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…We estimate Eq. ( 1) with the key explanatory and control variables lagged one year along with time and bank fixed effects to mitigate possible endogeneity and omitted bias (Bai et al, 2019;Huang, 2020). Besides, we apply the stepwise regression with backward elimination approach to remove insignificant variables to avoid multicollinearity.…”

Section: Return On Equity Boardsizementioning

confidence: 99%

Executive compensation and bank risk in China

Huang

2023

Econ Bus Lett

View full text Add to dashboard Cite

Executive compensation is an important mechanism of corporate governance for banks, but its effect on bank risk remains inconclusive. Based on a sample of banks listed in China, we uncover a significantly positive relationship between executive compensation and bank risk during the 2007–2018 period. The finding is robust to model specifications, the risk measures used, and the way to calculate executive compensation.

show abstract

“…Financial support mechanisms are associated with providing specific fund-lending support to farmers. The more fund-lending support farmers get, the more they can resist the risks brought by external shocks [63,64]. Based on this premise, this article proposes the following hypotheses: Hypothesis 7 (H7).…”

Section: Moderating Effects Of Social Supportmentioning

confidence: 99%

Determinants of Farmers’ Confidence in Agricultural Production Recovery during the Early Phases of the COVID-19 Pandemic in China

et al. 2021

View full text Add to dashboard Cite

The COVID-19 pandemic has adversely impacted the agricultural supply chain, export of agricultural products, and overall food security. However, minimal exploration has been attempted of farmers’ confidence in agricultural production recovery after the COVID-19 pandemic. Therefore, this study intends to explore the determinants of farmers’ confidence in agricultural production recovery in China during the early stages of the COVID-19 pandemic. More specifically, we analyzed the relationship between risk expectation and social support on the farmers’ confidence in agricultural production recovery by using the ordered probit model. Cross-sectional survey data were collected from February to March 2020 from 458 farm households in the 7 provinces of China to produce the findings. We found that the risk expectation of farmers had a significant negative impact on farmers’ confidence in agricultural production recovery. Social support seemingly had a significant positive impact on the farmers’ confidence in agricultural production recovery, and could play a supportive role in moderating the relationship between risk expectation and farmers’ confidence in recovery. However, social support alleviates the adverse effect of risk expectation on farmers’ confidence in agricultural production recovery to a certain extent. In addition, there were intergenerational differences in the effects of risk expectation and social support on farmers’ confidence in agricultural production recovery. These results imply that policies establishing the risk early warning mechanisms for agricultural production and strengthening the social support from governments and financial institutions are likely to significantly impact agricultural development in the post-COVID-19 era. The formal and informal risk minimization mechanisms should extend their support to vulnerable sectors such as agribusiness.

show abstract

Expected government support and bank risk-taking: Evidence from China

Cited by 14 publications

References 24 publications

Executive Compensation and Risk-Taking of Chinese Banks

Executive Compensation and Risk-Taking of Chinese Banks

Executive compensation and bank risk in China

Determinants of Farmers’ Confidence in Agricultural Production Recovery during the Early Phases of the COVID-19 Pandemic in China

Contact Info

Product

Resources

About