How Market Concentration and Liquidity Affect Non-Performing Loans: Evidence From Vietnam

Tran, Oanh Kim Thi; Nguyen, Diep Van; Duong, Khoa Dang

doi:10.17512/pjms.2022.26.1.20

Cited by 9 publications

(14 citation statements)

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“…Then, the Wald test to test whether the selected estimation approach violates the heteroskedasticity issues is implemented. Supposing the Wald test result indicates a heteroskedasticity issue, the dynamic system GMM estimation is employed to overcome the endogenous problems (Tran et al, 2022). A robustness test by separating the entire sample before and after 2015 is also performed, because the Law on Enterprises officially took effect in 2015 with new mandatory corporate regulations.…”

Section: Methodsmentioning

confidence: 99%

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CEO overpower and stock price crash risk: Evidence from family businesses in Vietnam

Kim

Nguyen

et al. 2023

JEECAR

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We examine how powerful CEOs affect stock price crash risk. We focus on family businesses in Vietnam because they contribute 25% of the national GDP. This study employs the Ordinary Least Squares and Fixed Effect Models and dynamic system Generalized Method of Moments to analyze a balanced panel of 983 annual observations of listed family businesses from 2005 to 2020. Our findings indicate that family businesses with CEO duality have about 60% higher crash risk than firms without CEO duality. However, higher CEO ownership reduces the stock price crash risk in the family businesses. The findings are robust after enacting the Law on Enterprises in Vietnam. Our findings align with agency theory, managerial power theory, information asymmetry theory, organizational theory, and prior literature. Our study contributes practical corporate governance implications for managing stock price crash risk in family businesses.

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Section: Methodsmentioning

confidence: 99%

“…The variance inflation factor (VIF) is examined to test whether the sample has a multicollinearity issue. The result is that the VIF of all variables is less than five, and there is no multicollinearity issue (Tran et al, 2022).…”

Section: Pearson Correlations Matrixmentioning

confidence: 99%

CEO overpower and stock price crash risk: Evidence from family businesses in Vietnam

Kim

Nguyen

et al. 2023

JEECAR

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“…The FEM method assumes that the error of the model has unobservable factors that are different between the objects but do not change over time and affect the independent variables, so the removal of these factors will help the estimation results to be reliable while following the REM method, the unobservable error factor that unchanged over time do not affect the independent variables, and the removal of those factors make the result of the model reliable though inefficient. However, FEM and REM carry inefficiency terms and heterogeneity, drastically affecting outcomes (Duong et al, 2023;Tran et al, 2022). Therefore, this study implements the System Generalized moment method (Sys-GMM) to overcome the endogeneity issue (Duong et al, 2023).…”

Section: Methodsmentioning

confidence: 99%

“…Table 3 shows the Pearson correlation matrix between independent variables. The coefficient correlations are moderate, with no perfect relationships, indicating that multicollinearity is not a problem in our sample (Tran et al, 2022). On the other hand, we examine the variance inflation factor (VIF) to test the multicollinearity issue.…”

Section: Pearson Correlation Matrixmentioning

confidence: 99%

Do Bank Funding Diversity and Bank Lending Affect Net Interest Margins? Evidence From Asia Markets Before and During the Covid-19 Pandemic

Duong,

Le,

et al. 2023

SAGE Open

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This paper investigates how bank funding diversity and lending affect bank performance, especially during the Covid-19 pandemic. We employ the Generalized Method of Moments to analyze unbalanced panels of commercial banks in China, Taiwan, and Vietnam. The empirical results show that a percentage increase in bank funding diversity and bank lending in the sample negatively affects profitability. In contrast, the results are mixed in each country due to different market microstructures. While holding diversified funding strengthens bank profitability during the pandemic, increasing lending activities dampers the bank’s performance. Finally, this research has important implications for bank managers and regulators to develop sustainable banking performance in emerging markets, especially during pandemics.

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“…Shan et al (2018) examined the effect of political stability on FDI inflow and employed the Fixed Effect Model. Our study follows Duong et al (2022) and Xu et al (2021) to utilize the dynamic system Generalized Method of Moments (GMM) because of the following reasons. First, GMM is generally more efficient than OLS and FEM because GMM uses all available moment conditions to estimate the parameters, which reduces the estimation bias.…”

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confidence: 99%

Political stability and foreign direct investment inflows in 25 Asia-Pacific countries: the moderating role of trade openness

Le,

Pham,

Pham

et al. 2023

Humanit Soc Sci Commun

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This article analyzes how trade openness and political stability affect foreign direct investment (FDI) in 25 Asia-Pacific countries from 1990 to 2020. This study employs the dynamic system Generalized Method of Moments to mitigate the heteroskedasticity and autocorrelation issues. We also perform the Johnson–Neyman test to examine whether trade openness moderates the relationship between political stability and FDI. Our findings show that trade openness positively affects FDI, while political stability has a negative effect. Noticeably, the Johnson–Neyman test indicates that Trade Openness moderates the relationship between political stability and FDI in Asia-Pacific nations. Trade openness and its moderating role remained robust before the 2008 financial crisis. The impacts of trade openness and political stability on FDI persist in non-tax-heaven countries. Our findings align with market-seeking, efficiency, resource-seeking, and regulatory risk theories. Finally, these findings are helpful for policymakers to attract FDI projects sustainably across the Asia-Pacific region.

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How Market Concentration and Liquidity Affect Non-Performing Loans: Evidence From Vietnam

Cited by 9 publications

References 0 publications

CEO overpower and stock price crash risk: Evidence from family businesses in Vietnam

CEO overpower and stock price crash risk: Evidence from family businesses in Vietnam

Do Bank Funding Diversity and Bank Lending Affect Net Interest Margins? Evidence From Asia Markets Before and During the Covid-19 Pandemic

Political stability and foreign direct investment inflows in 25 Asia-Pacific countries: the moderating role of trade openness

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