Systemic Risk, Corporate Governance and Regulation of Banks Across Emerging Countries

Andrieş, Alin Marius; Mutu, Simona

doi:10.2139/ssrn.2742498

Cited by 7 publications

(9 citation statements)

References 15 publications

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“…Using a cross-country sample from 48 countries, Laeven and Levine (2009) show that the relationship between bank risk and capital regulations, deposit insurance policies, and restrictions on bank activities can be either positive or negative depending on the comparative power of shareholders within the corporate governance structure of each bank. Andries and Nistor (2016) provide similar evidence from ten Central Eastern European (CEE) countries, concluding that the impact of corporate governance policies on systemic risk is affected by the tightness of three types of regulations, namely supervisory power, capital requirements and activity restrictions. Finally, using data from 54 countries, De Vita and Luo (2018) conclude that with the exception of capital requirements, other tools that relate to the pillars of Basel II, namely market discipline and supervisory power are unable to mitigate the propensity to greater risk-taking by banks resulting from larger board size, higher board independence and greater gender diversity of the board.…”

Section: Review Of Related Studiesmentioning

confidence: 78%

Macroprudential policies, corporate governance and bank risk: Cross-country evidence

Gaganis

Lozano‐Vivas

Papadimitri

et al. 2020

Journal of Economic Behavior & Organization

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Section: Review Of Related Studiesmentioning

confidence: 78%

Macroprudential policies, corporate governance and bank risk: Cross-country evidence

Gaganis

Lozano‐Vivas

Papadimitri

et al. 2020

Journal of Economic Behavior & Organization

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“…Capital Adequacy Ratio was initially considered as measure of leverage but due to little variation among the listed banks it is replaced by Leverage Ratio. In the similar vein, the extant literature on systemic risk also highlights extensive use of leverage ratios (Andries & Mutu, 2016;Liu & Zhong, 2017).…”

Section: Determinants Of Systemic Riskmentioning

confidence: 97%

MES vs ∆CoVaR: Empirical evidence from Pakistan

Hanif

Yousaf

Waheed

et al. 2021

Cogent Business & Management

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The global financial crisis unveiled that inadequate analysis of risk can annihilate the financial system and repercussions can encompass the whole economy. Pakistan is one of the developing economies that has experienced robust growth in the banking sector. This hard earned growth can only be sustained by adequately examining the risk exposure of the financial system. Consistent with this purview, this study attempts to comprehensively analyse for the first time, the systemic importance of financial institutions of Pakistan using ∆CoVaR and MES. Moreover, the study employs System GMM to analyze the bank, sector and country level determinants of systemic risk measures. The findings of the study signify that MES and ∆CoVaR measures identify different institutions as systemically important. Similarly, the influence of variables also changes with change in the systemic measure. The estimation of determinants of systemic risk outline that non-interst income is insignificant when MES is used as measure of systemic risk but the same turns significant for ∆CoVaR. The impact of deposit ratio also changes across the measures of systemic risk. Concentration has positive impact on MES but negatively influences ∆CoVaR. Finally, the impact of bank claims also varies across the measures of systemic risk. The study contributes to the literature by highlighting the complementary nature of systemic risk measures for the first time in a developing economy like Pakistan. The study also identifies important relationships necessary ABOUT THE AUTHORS

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“…Though not contractually obliged to do so, it is generally accepted that firms are reluctant to cut dividends due to the adverse signal that it transmits to the investment community (Brav et al, 2005). 11 Therefore, a greater number of dividend payers is likely to require a greater proportion of cash resources and thus reduce cash available for other system-wide activities. Furthermore, the IMF (2019) reports an increasing tendency for firms to fund dividend payouts by borrowing.…”

Section: Identifying Characteristics Of Systemically Risk Firmsmentioning

confidence: 99%

“…Other key determinants of systemic risk for banks is the level of undercapitalisation (Laeven, Ratnovski and Tong, 2016), leverage and market-to-book value (Calluzzo and Dong, 2015), the level 1 Other measures rely on CDS data, e.g. Huang, Zhou and Zhu (2009), Giglio (2011) and Nijskens and Wagner (2011); interbank market data as in Giratis of interconnectedness with the rest of the financial system (Bostandzic and Weiß, 2018) and corporate governance (Iqbal, Strobl and Vahamaa, 2015;Andries and Nistor, 2016;and Anginer et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Industrial Firms and Systemic Risk

et al. 2020

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We investigate the systemic importance of U.S. industrial firms and analyse the firm-specific characteristics that identify systemically important industrials. We compute two firm-specific measures of systemic risk for 367 non-financial corporations and confirm that industrial firms are both vulnerable to systemic shocks and contribute to system-wide risk. Systemic risk measures exhibit substantial variation across firms and over time. Debt and trade credit are related to both dimensions of systemic risk, while a range of other firm characteristics are associated with systemic risk in at least one direction. The differences between the dimensions of risk and their associated characteristics underline the importance of analysing both measures of risk. Finally, we report some striking differences vis-à-vis the extant literature on banks and non-bank financials.

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Systemic Risk, Corporate Governance and Regulation of Banks Across Emerging Countries

Cited by 7 publications

References 15 publications

Macroprudential policies, corporate governance and bank risk: Cross-country evidence

Macroprudential policies, corporate governance and bank risk: Cross-country evidence

MES vs ∆CoVaR: Empirical evidence from Pakistan

Industrial Firms and Systemic Risk

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