Impact of macroeconomic factors and interaction with institutional performance on Vietnamese bank share prices
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Received February 4, 2021;Accepted March 15, 2021;Published March 22, 2021
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Author(s)Link to ORCID Index: https://orcid.org/0000-0003-0211-6229
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DOIhttp://dx.doi.org/10.21511/bbs.16(1).2021.12
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Article InfoVolume 16 2021 , Issue #1, pp. 127-137
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Cited by3 articlesJournal title: Journal of Computers, Mechanical and ManagementArticle title: Effects of Inflation, Ten-Year Bond Yield Rate, and VIX Index on the Stock Prices of Banks Across All Three Market Capitalizations in IndiaDOI: 10.57159/gadl.jcmm.3.1.240103Volume: 3 / Issue: 1 / First page: 08 / Year: 2024Contributors: Anuragh Nagvekar, Raghavendra Kamath, Teja Simha, Yash Hegde, Aruna PrabhuJournal title: World Banking AbstractsArticle title: A: Financial InstitutionsDOI: 10.1111/woba.12184Volume: 39 / Issue: 3 / First page: 159 / Year: 2022Contributors:Journal title: Investment Management and Financial InnovationsArticle title: Influence of world stock markets on the development of the stock market in UkraineDOI: 10.21511/imfi.18(4).2021.20Volume: 18 / Issue: 4 / First page: 223 / Year: 2021Contributors: Inna Shkolnyk, Serhiy Frolov, Volodymyr Orlov, Viktoriia Dziuba, Yevgen Balatskyi
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Shares of listed banks in Vietnam gain a lot of interest from investors and regulators. It is important to study the primary drivers of the banks’ share prices. In this context, Gross Domestic Product (GDP), Gold Price (GP), Ninety-day Interbank Interest Rate (R), and USD/VND Exchange Rate (FX) are selected as representatives for macroeconomic variables. A new contribution of this study is the application of interactive factors between macroeconomics and bank performance (i.e., Equity Capital (E), Deposit Аmounts (D), Loan Amounts (L), Non-performing Loans (NPLs), Leverage (LEV), Capital Adequacy Ratio (CAR), Return on Assets (ROA), and Stock Beta (Beta)) in evaluating their impact on bank share prices. Applying the econometric method of Two-Stage Least Square (2SLS) and the quarterly financial data of 13 listed banks from Q1/2009 to Q3/2020, the regression results show that GDP improvements can foster an increase in bank share prices, and this impact is strengthened if banks have good performance of ROA, CAR, and with strict control of NPLs. The R also has a positive impact on bank share prices, and the price level increases if NPLs, LEV, and Beta are controlled at optimal levels. However, empirical evidence drawn from the study also suggests that an increase in FX and GP is not a significant contributor to bank share prices, especially if the bank does not manage NPLs and LEV. Moreover, the impact of E, D, and L on the movements of bank share prices is not significant.
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JEL Classification (Paper profile tab)G11, G12, G21, E02
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References44
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Tables4
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Figures0
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- Table 1. Variables used in the study
- Table 2. Descriptive statistics for variables used in the study
- Table 3. Correlations among variables used in the models
- Table 4. Effects of macroeconomics and bank performance on bank share prices
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Conceptualization
Nguyen Phu Ha
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Data curation
Nguyen Phu Ha
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Formal Analysis
Nguyen Phu Ha
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Investigation
Nguyen Phu Ha
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Methodology
Nguyen Phu Ha
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Resources
Nguyen Phu Ha
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Supervision
Nguyen Phu Ha
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Validation
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Visualization
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Writing – original draft
Nguyen Phu Ha
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Conceptualization
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Evaluating the nationalization & privatization effect: a case of Indian banking industry
Banks and Bank Systems Volume 13, 2018 Issue #1 pp. 11-21 Views: 2869 Downloads: 407 TO CITE АНОТАЦІЯThe facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.
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ERP implementation in banks: success factors & impact on financial performance
Munther Al-Nimer , Ahmed Omush , Adel Almasarwah doi: http://dx.doi.org/10.21511/bbs.12(4).2017.02Banks and Bank Systems Volume 12, 2017 Issue #4 pp. 17-30 Views: 2716 Downloads: 1146 TO CITE АНОТАЦІЯThe study aims to measure the extent of implementing ERP systems in the banking sector in Jordan, and identify the main factors that influence the implementation decision, in addition to measure the impact of the post-implementation of the ERP system on the financial performance. The study utilized a content analysis as a research instrument. The study of population consisted of all the banks in Jordan, where the study applied ‘Purposive Sample’ type. Therefore, the study included 11 banks from 2011 to 2016.
The study indicated that the implementation year of the ERP system started in most of the Jordanian banks in 2013, and the rates vary from bank to bank according to their importance and the level of awareness. Training courses are considered the main variable that these banks face in the process of implementation. In addition, awareness of the advantages, the cost, and supporting the infrastructure are the core factors needed to influence the implementation decision.
There is no impact when implementing an ERP system on the financial performance of the Jordanian banks in regard to the ROI and the DPS; on the other hand, there is an impact of the ERP system on the overall performance of the banks.
The study recommends to disseminate knowledge on the advantages of implementing of ERP system in Jordanian banks and to develop the IT department efficiency. Moreover, it will be worthwhile to examine the effect of ERP systems by utilizing financial and non-financial measurements. -
Internal audit and financial performance of Yemeni commercial banks: Empirical evidence
Saddam A. Hazaea , Mosab I. Tabash , Jinyu Zhu , Saleh F. A. Khatib , Najib H. S. Farhan doi: http://dx.doi.org/10.21511/bbs.16(2).2021.13Banks and Bank Systems Volume 16, 2021 Issue #2 pp. 137-147 Views: 2005 Downloads: 735 TO CITE АНОТАЦІЯThis study seeks to verify the contribution of internal audit (IA), especially its role in improving financial performance in Yemeni commercial banks, with a specific focus on three factors, namely: the independence and objectives of IA, the quality of IA and the size of IA. This study reviews some existing literature on the contribution and role of IA in improving financial performance. It relies on available data from questionnaires. 90 questionnaires were distributed to nine commercial banks in Yemen (23 branches) working under the supervision of the Central Bank of Yemen; 81 questionnaires (90%) were regained and used in the process of analysis. To analyze the data, three analysis approaches were used, including description, correlation, and regression. The results showed that the IA has a significant impact on the overall performance of Yemeni commercial banks. Furthermore, the results showed that the auditors’ efficiencies, as well as their financial and accounting experiences, have a significant and positive impact on financial performance. It was revealed that the independence and objectivity of internal auditors are highly insignificant for financial performance. However, the size of IA and the frequency of the auditors’ meetings have a negative and significant effect on financial performance. This study provides some recommendations for improving the effectiveness of IA, which in turn will contribute to improving financial performance.