The impact of state and foreign ownership on banking risk: Evidence from the MENA countries

Lassoued, Naima; Sassi, Houda; Attia, Mouna Ben Rejeb

doi:10.1016/j.ribaf.2015.09.014

Cited by 90 publications

(85 citation statements)

References 45 publications

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“…Chen et al (2017).9 Moreover, our sample mean of 70 percent for state-controlled companies is comparable to that of Dong et al (2014). Turning to foreign ownership, the sample mean of foreign ownership is 18.56 percent, while that of fund management companies with foreign investment is 49%, which is similar to the figures of Dong et al (2014) and 33% by Lassoued et al (2016). This means that almost half of Chinese mutual fund management companies have foreign investors.…”

Section: Ownership Structuresupporting

confidence: 61%

Does ownership structure affect performance? Evidence from Chinese mutual funds

Mamatzakis

2020

Rev Quant Finan Acc

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This paper examines the impact of ownership structure on Chinese mutual fund performance and market share. We focus on two dimensions of ownership structure, namely the background of the owners and the degree of ownership concentration. Using a hand-collected dataset comprising 731 observations for 94 fund management companies over the period from 2005 to 2015, we provide evidence with panel estimation shows that the government ownership ratio and government-controlled companies have a positive effect on funds' performance. On the other hand, foreign ownership has a negative impact on performance and market share. Having a higher ownership concentration is more likely to increase the company's market share, whereas government-controlled companies experience a negative impact on their market share.

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Section: Ownership Structuresupporting

confidence: 61%

Does ownership structure affect performance? Evidence from Chinese mutual funds

Mamatzakis

2020

Rev Quant Finan Acc

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“…The capital adequacy ratio of state-owned banks has increased for rural and commercial banks but is still lower than that of other types of banks owned by the government and involves less risk-taking behavior. Banks with high ownership concentration have a lower capital adequacy ratio level and less risk, contrary to the above reference, however, state-owned banks maintain a high capital adequacy ratio according to the principle of prudence [26].…”

Section: Literature Reviewmentioning

confidence: 81%

Loan Loss Provision and Risk-Taking Behavior of Commercial Banks in Pakistan: A Dynamic GMM Approach

et al. 2019

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The paper analyzes the determinants of the loan loss provision (LLP) of 22 commercial banks in Pakistan from 2010 to 2017. The motive of the research is that LLP is a measure of credit risk as a proxy for bank risk-taking behavior profits and banks’ sustainability. Especially after the occurrence of a global financial crisis. The quantitative research method of data collection from Bureau Van Dijk’s BankFocus portal and the World Bank’s World Development Indicators. Other than considering specific bank variables such as capital adequacy ratio, return on average equity, and government securities, the effects of macroeconomic variable inflation and lending interest rates are explicitly studied. The model of pooled ordinary least squares (POLS), fixed effect (FE), panel corrected standard error (PCSE), and panel data estimation in the form of a general method of moments (GMM) two-step system is used to find the risk-taking behavior of banks in Pakistan. The results obtained by the use of inflation (INF) as an instrumental variable of LLP are highly dependable with a negative impact on loan loss provision. Lending interest rate (LIR) has a positive and significant relationship with LLP and contribute in the study of macroeconomic variables for bank risk-taking, excessive amount of interest rate was not beneficial for banks to earn profits especially during the economic crises. Return on average equity (ROAE) significantly moderates LLP with a negative interaction and helped the bank with profitable operations and save bank from solvency. Capital adequacy ratio (CAR) and government securities (GOV) are insignificant to LLP. The result is robust by measure of endogeneity, and highlights the important role of commercial banks’ sustainability to explain risk-taking behavior in Pakistan with the intention to increase profits after the occurrence of financial crises. The study further contributes to future research on managerial policy and decision making. In summary, the paper on loan loss provision has the capacity to forecast commercial banks’ credit risk for risk-taking in an emerging country.

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“…The access of foreign banks to funding from parent banks through internal capital markets serves as the most convincing explanation for this situation. The impact of foreign and state ownership on banking risk was investigated by Lassoued, houda and Ben Rejeb Attia [2016], who find that state ownership banks are encouraged to take more risks while foreign subsidiaries. But on the other hand, state-owned banks increase capital ratio to hedge against excessive risk.…”

Section: The Impact Of the Foreign Ownership On Bank Riskmentioning

confidence: 99%

The Relevance of Foreign Ownership and Financial Liberalization for Determining Banking Risk: A Comparative Analysis of European Countries

Karkowska

2018

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The impact of state and foreign ownership on banking risk: Evidence from the MENA countries

Cited by 90 publications

References 45 publications

Does ownership structure affect performance? Evidence from Chinese mutual funds

Does ownership structure affect performance? Evidence from Chinese mutual funds

Loan Loss Provision and Risk-Taking Behavior of Commercial Banks in Pakistan: A Dynamic GMM Approach

The Relevance of Foreign Ownership and Financial Liberalization for Determining Banking Risk: A Comparative Analysis of European Countries

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