The impact of capital structure on bank profitability: evidence from Vietnam

Pham, Nam Hai; Hoang, Tri M.; Pham, Nhung Thi Hong

doi:10.1080/23311975.2022.2096263

Cited by 15 publications

(22 citation statements)

References 67 publications

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“…This system should instigate with planning and culminate with reporting to internal and external stakeholders, serving as a plan foundation (Mahmoudian et al, 2020). Banks should conduct a comprehensive and fair evaluation of both assets and loans prior to lending, to ensure the quality of financial institutions assets, and thoroughly investigate long‐term loans and investment projects (Pham et al, 2022) where there are many FP indicators. The advancement of business and technology drives companies to compete and produce superior products, leading to ongoing performance improvements (Shields, 2022).…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

The impact of green innovation on sustainability and financial performance: Evidence from the Jordanian financial sector

Srouji,

Hamdallah,

Al‐Hamadeen

et al. 2023

Bus Strat Dev

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The purpose of this study is to examine the relationship between sustainability performance (SP) and financial performance (FP), based on performance disclosures (reporting) of the Jordanian financial sector for the period of 2017–2020. The study employs green innovation (GI) indicators as moderating and mediating variables; by using hierarchical regression; as means of unlocking and examining the relationship between SP and FP; through the lens of the stakeholder theory. The hierarchical regression findings suggest that GI indicators partially mediate the relationship between SP and FP, but do not demonstrate a moderating effect. As a main result, it is indicated that Jordanian financial institutions may use SP transparency indicators as an incentive variable, which could influence their overall FP. The research also contributes to the existing literature by adding insight into the use of GI indicators in a developing country and the potential impact on financial institutions markets. These findings lend empirical credence to the generally held belief that increase disclosure benefits for both internal and external users.

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Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

The impact of green innovation on sustainability and financial performance: Evidence from the Jordanian financial sector

Srouji,

Hamdallah,

Al‐Hamadeen

et al. 2023

Bus Strat Dev

View full text Add to dashboard Cite

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“…This study contributes to the growing literature on bank performance for the following reasons. Firstly, this study complements Vo (2020), Duong et al (2023), and Pham and Nguyen (2023) to investigate the impact of funding diversity and lending on profitability. However, Vo (2020), Duong et al (2023), Pham and Nguyen (2023) only examine data from Vietnam, while our study expands the data sample to cover three countries such as Vietnam, China, and Taiwan.…”

Section: Introductionmentioning

confidence: 98%

“…Firstly, this study complements Vo (2020), Duong et al (2023), and Pham and Nguyen (2023) to investigate the impact of funding diversity and lending on profitability. However, Vo (2020), Duong et al (2023), Pham and Nguyen (2023) only examine data from Vietnam, while our study expands the data sample to cover three countries such as Vietnam, China, and Taiwan. The data of multinational datasets enables our study to compare the impact of bank funding diversity and lending on bank performance more comprehensively than studies conducted solely within one country or territory.…”

Section: Introductionmentioning

confidence: 98%

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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“…Capital structure is primarily concerned with how firm(s) chooses to divide their cash flows into two fixed components (i.e., loan capital) and a residual component (i.e., shareholders' equity). Banks and economies have benefited when capital has actually been recovered and balance sheets have been rebuilt (Pham et al, 2022). With this in mind, banks mobilize funds in the form of deposits that can later be utilized to fund various projects and to give loans in addition to financing for commercial obligations or equity shares.…”

Section: Introductionmentioning

confidence: 99%

“…Only well-capitalized banks can meet the needs of the real economy to produce robust, long-term expansion claims Carney (2013). The study of (Pham et al, 2022) aims to ascertain how capital structure affects the profitability of Vietnamese commercial banks. The results of the study show that while non-deposit liabilities have a favorable impact on bank profitability, client deposits have a negative impact.…”

Section: Introductionmentioning

confidence: 99%

Impact of Capital Structure on Bank Performance: A Study on Janata Bank Limited of Bangladesh

Begum¹,

Rimu²,

Ara³

2022

JST

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This study aims to examine the impact of capital structure on the bank performance of Janata Bank Limited (JBL) from 2011 to 2021. Furthermore, the goal of this study is to determine the connection between debt combinations and financial performance. For analysis, secondary data are mainly used from the last 11 years (2011-2021) annual reports of Janata Bank Limited. In this study capital structure measures (long-term debt on equity, long-term debt on the asset, total debt on equity, total debt on the asset, short-term debt on equity, short-term debt asset) are selected as the independent variables, and performance measures (return on asset, return on equity, return on investment) were considered as the dependent variables. As statistical tools, regression and correlation analysis have been used in this study. The study's findings demonstrated a strong correlation between JBL's capital structure and financial performance.

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The impact of capital structure on bank profitability: evidence from Vietnam

Cited by 15 publications

References 67 publications

The impact of green innovation on sustainability and financial performance: Evidence from the Jordanian financial sector

The impact of green innovation on sustainability and financial performance: Evidence from the Jordanian financial sector

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

Impact of Capital Structure on Bank Performance: A Study on Janata Bank Limited of Bangladesh

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