Template-Type: ReDIF-Article 1.0 Author-Name: Moses Nyangu Author-X-Name-First: Moses Author-X-Name-Last: Nyangu Author-Name: Nyankomo Marwa Author-X-Name-First: Nyankomo Author-X-Name-Last: Marwa Author-Name: Ashenafi Fanta Author-X-Name-First: Ashenafi Author-X-Name-Last: Fanta Title: Bank risk-taking behaviour, market power and efficiency: empirical evidence from the East African community Abstract: The paper examines the impact of bank risk-taking behaviour and market power on efficiency within the East African community. Comprehensive types of risk-taking behaviour include credit risk, liquidity risk, capital risk and insolvency risk, while structural and non-structural measures of market power are employed. Unlike previous studies, bank efficiency is decomposed into technical, pure technical, scale, cost and revenue efficiency. Using a two-step system GMM on 149 banks with 1,805 observations over the period 2001-2018, the findings reveal that the effect of bank risk-taking behaviour varies depending on the type of efficiency and existing market structure. Market power is observed to precede all types of bank efficiency, thus supporting the concentration-efficiency hypothesis that banks with greater market power are more efficient. Overall, reduced bank risk-taking behaviour and greater market power leads to more bank efficiency. The results present potentially important policy recommendations for bank risks, market power and efficiency. Journal: Int. J. of Banking, Accounting and Finance Pages: 145-176 Issue: 2 Volume: 13 Year: 2022 Keywords: bank risk-taking; market power; efficiency; system GMM; East African community; EAC. File-URL: http://www.inderscience.com/link.php?id=126154 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:2:p:145-176 Template-Type: ReDIF-Article 1.0 Author-Name: Vasileios Giannopoulos Author-X-Name-First: Vasileios Author-X-Name-Last: Giannopoulos Author-Name: Eleftherios Aggelopoulos Author-X-Name-First: Eleftherios Author-X-Name-Last: Aggelopoulos Author-Name: Antonios Georgopoulos Author-X-Name-First: Antonios Author-X-Name-Last: Georgopoulos Title: Borrower characteristics and loan performance: evidence from micro and small Greek firms Abstract: Using a unique dataset of 3,294 micro and small enterprise loans granted before the recession by one of the four systemic banks in Greece, this study identifies diverse borrower-specific characteristics of these loans that transformed into non-performing loans (NPLs) during the recession. Also, we capture how their impact on NPLs changes as recession escalates. More detailed, we find that homeownership, the bank deposit relationship, the existence of own facilities, the business equipment lending purpose, and the cash loan collateral are crucial factors for NPL avoidance in recession years. In contrast, high levels of loan to turnover ratio and the age of the firm's owner seem to increase substantially the delinquency risk. The paper provides originality as it explicitly utilises primary micro-specific information substantially differing from the related literature that utilises aggregated, macroeconomic data, with important implications for policymakers and bank staff regarding lending and repayment policies. Journal: Int. J. of Banking, Accounting and Finance Pages: 1-31 Issue: 1 Volume: 13 Year: 2022 Keywords: non-performing loans; NPLs; borrower-specific characteristics; micro and small enterprises; MSEs; Greece. File-URL: http://www.inderscience.com/link.php?id=121547 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:1:p:1-31 Template-Type: ReDIF-Article 1.0 Author-Name: Elisabeth Dedman Author-X-Name-First: Elisabeth Author-X-Name-Last: Dedman Author-Name: Shan Hua Author-X-Name-First: Shan Author-X-Name-Last: Hua Author-Name: Thanamas Kungwal Author-X-Name-First: Thanamas Author-X-Name-Last: Kungwal Title: Why do UK firms repurchase their own shares? Abstract: We examine the practice of share repurchases in the UK from 2000 to 2016 We find that an important regulatory reform in 2003, which relaxed previously strict rules about repurchases, was followed by a significant increase in repurchase activity by UK main-market listed firms We then examine the motivation for repurchases, testing several key hypotheses from prior literature. Our analysis of 6,228 firm years provides support, across both regulatory regimes, for both the free cash flow and the investment hypotheses. However, there are also changes in share repurchase motivations following the easing of restrictions. Important differences between UK and US payout practices are identified. Journal: Int. J. of Banking, Accounting and Finance Pages: 177-216 Issue: 2 Volume: 13 Year: 2022 Keywords: payout policy; share repurchases; regulation; UK. File-URL: http://www.inderscience.com/link.php?id=126155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:2:p:177-216 Template-Type: ReDIF-Article 1.0 Author-Name: Carmelo Algeri Author-X-Name-First: Carmelo Author-X-Name-Last: Algeri Author-Name: Antonio Fabio Forgione Author-X-Name-First: Antonio Fabio Author-X-Name-Last: Forgione Author-Name: Raffaele Staglianò Author-X-Name-First: Raffaele Author-X-Name-Last: Staglianò Title: Spatial patterns and local banks' tax behaviour: an empirical analysis in Italy Abstract: In this study, we consider the spatial dependence effects in an empirical model measuring local banks' tax behaviour, assessing the interdependence between geographical units and the related spillover effects. Our results strongly support the existence of co-movements among banks' tax avoidance policies. The findings rely on the assumption that local banks compete mainly among themselves, even on the funding side, and therefore unfair tax behaviour can trigger loss of customers, which limits banks' tax avoidance activities. However, neighbours' adoption of opportunistic tax strategies can remove the competition hurdle in pursuing tax avoidance policies. Our findings point out a virtuous effect of customer pressure, which could take effect in other areas of bank management. Journal: Int. J. of Banking, Accounting and Finance Pages: 217-240 Issue: 2 Volume: 13 Year: 2022 Keywords: tax behaviour; spatial dependence; small cooperative banks; Lerner index; Italy. File-URL: http://www.inderscience.com/link.php?id=126156 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:2:p:217-240 Template-Type: ReDIF-Article 1.0 Author-Name: Konstantinos Kostaris Author-X-Name-First: Konstantinos Author-X-Name-Last: Kostaris Author-Name: Andreas Andrikopoulos Author-X-Name-First: Andreas Author-X-Name-Last: Andrikopoulos Title: Herding behaviour in shareholder activism brokers Abstract: This paper seeks to detect herding behaviour in public firms targeted by multiple shareholders through shareholder activism. We use beneficial ownership reports and social network analysis to depict the connections between shareholders and targets in a shareholder activism network. We concentrate on brokers and the 1% of target firms with the largest number of shareholder activists. In our model, brokers are nodes that connect shareholders and targets that are not directly connected. We find no evidence of herding behaviour in either brokers or the 1% of target firms. Our findings are important to regulators and investors affected by principal-agent conflicts in targeted firms. Journal: Int. J. of Banking, Accounting and Finance Pages: 261-276 Issue: 2 Volume: 13 Year: 2022 Keywords: shareholder activism; activism networks; connections; target firms; public firms; brokers; herding behaviour; clustered activism; beneficial ownership reports. File-URL: http://www.inderscience.com/link.php?id=126158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:2:p:261-276 Template-Type: ReDIF-Article 1.0 Author-Name: Arif Budi Satrio Author-X-Name-First: Arif Budi Author-X-Name-Last: Satrio Author-Name: Mustaruddin Saleh Author-X-Name-First: Mustaruddin Author-X-Name-Last: Saleh Author-Name: Wendy Author-X-Name-First: Author-X-Name-Last: Wendy Title: Inequality of information and the value of firms Abstract: Using a panel dataset of 425 non-financial firms listed on the Indonesia Stock Exchange from 2005 to 2019, we tested whether information inequality could systematically affect a firm's value. The research results show that a severe information gap will lead to errors by investors in assessing a firm. The results of this test are still robust after using different proxies, controlling for several potential factors, and eliminating endogeneity effects. This study provides insight into the phenomenon of information inequality in capital markets in developing countries and provides practical implications. Journal: Int. J. of Banking, Accounting and Finance Pages: 241-260 Issue: 2 Volume: 13 Year: 2022 Keywords: information inequality; asymmetric information; bid-ask spread; firm value; emerging market; Indonesia. File-URL: http://www.inderscience.com/link.php?id=126159 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:2:p:241-260 Template-Type: ReDIF-Article 1.0 Author-Name: Hatem Elfeituri Author-X-Name-First: Hatem Author-X-Name-Last: Elfeituri Title: Assessing competitiveness in the MENA banking sector in the context of the quality of institutional variables and political conflict risk Abstract: This paper investigates competitive conditions and the role of institutional environments and political risk as revenue and profitability drivers for commercial banks in the Middle East and North Africa (MENA) region. I examine an extended period (1999-2015), consisting of political and economic unrest and transformation that includes the 2007 global financial crisis and the recent Arab uprisings of 2011. The Panzar-Rosse model, competition indexes and Arrelano-Bond and GMM methodologies have been employed to examine such issues. The findings indicate that MENA banks are still operating under monopolistic competition conditions, and banks' profitability is affected by competition indexes. With regards to political instability, bank revenues and profitability are negatively affected by such matters. The findings are beneficial in terms of valuable policy implications for the optimal structuring of these countries' banking systems. Journal: Int. J. of Banking, Accounting and Finance Pages: 32-60 Issue: 1 Volume: 13 Year: 2022 Keywords: Panzar-Rose; Lerner; Boone; institutional; monopolistic; competition; deregulation; MENA. File-URL: http://www.inderscience.com/link.php?id=121552 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:1:p:32-60 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul Ganiyu Iddrisu Author-X-Name-First: Abdul Ganiyu Author-X-Name-Last: Iddrisu Author-Name: Alhassan Andani Author-X-Name-First: Alhassan Author-X-Name-Last: Andani Author-Name: Joshua Yindenaba Abor Author-X-Name-First: Joshua Yindenaba Author-X-Name-Last: Abor Title: Effective monetary policy, banks' pricing behaviour and human development in Africa Abstract: This paper empirically examines the effect of monetary policy effectiveness on human development in Africa. We employ both micro-bank level and macro-country level data. Bank level data are taken from the bank scope database maintained by Fitch/IBCA/Bureau Van Dijk. Series are yearly, covering a sample of 320 banks across 29 African countries. Panel fixed effects, random effects and IV regressions were estimated for the period 2002 to 2013. For our IV estimation, the paper explores an instrumental variable based on the fact that effective monetary policy is conditional on the independence of the central bank. The regression results that ensued suggest that; first, effective monetary policy translates to high banks' loan and deposit prices. Building on these results and employing various specifications of banks' pricing strategy, the second test suggests that, high banks' pricing induced by effective monetary policy tends to increase human development. Results of the net effects eventually suggest that effective monetary policy, overall, does not improve human development. Journal: Int. J. of Banking, Accounting and Finance Pages: 61-87 Issue: 1 Volume: 13 Year: 2022 Keywords: effective monetary policy; human development; banks' pricing behaviour; central bank independence; CBI; Africa. File-URL: http://www.inderscience.com/link.php?id=121555 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:1:p:61-87 Template-Type: ReDIF-Article 1.0 Author-Name: George Emmanuel Iatridis Author-X-Name-First: George Emmanuel Author-X-Name-Last: Iatridis Author-Name: Elizabeth Georgoula Author-X-Name-First: Elizabeth Author-X-Name-Last: Georgoula Author-Name: Tuba Toksöz Author-X-Name-First: Tuba Author-X-Name-Last: Toksöz Title: An investigation of how volatile financial analyst recommendations may affect managerial behaviour and financial reporting quality Abstract: This study investigates how the volatility in analyst buy recommendations in the UK may affect managerial behaviour. It examines whether the adoption of earnings manipulation and other opportunistic behaviours, such as managing the reporting tone of press releases, financial statement complexity and CEO overconfidence, may lead to volatile buy recommendations. This study shows that the use of earnings manipulation, especially when companies' current performance differs from the forecast, is likely to result in volatile buy recommendations. Volatile buy recommendations are linked to greater financial statement complexity and higher tonal disagreement between press releases and media articles. Analysts issue less buy recommendations when financial statements are complex or when overconfident CEO behaviour is reported. Companies with volatile buy recommendations are more likely to experience greater stock price crash risk, especially when accompanied by CEO overconfidence and tonal disagreement. Journal: Int. J. of Banking, Accounting and Finance Pages: 88-114 Issue: 1 Volume: 13 Year: 2022 Keywords: earnings manipulation; analyst recommendations; financial statement complexity; CEO overconfidence. File-URL: http://www.inderscience.com/link.php?id=121562 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:1:p:88-114 Template-Type: ReDIF-Article 1.0 Author-Name: Dorsaf Ben Aissia Author-X-Name-First: Dorsaf Ben Author-X-Name-Last: Aissia Author-Name: Nizar Neffati Author-X-Name-First: Nizar Author-X-Name-Last: Neffati Title: Investor sentiment, bull and bear markets and stock returns Abstract: This article examines the relevance of investor sentiment in explaining market and cross-sectional returns. It considers many sentiment measures based on market, survey and text data and proposes a new composite market sentiment index. Using the US data (S%P 500, Dow Jones and NASDAQ indexes) over July 1965-December 2019, the paper shows that the effect of investor sentiment on market stocks returns is more pronounced when aggregating different sentiment measures. It also identifies turning points in investor sentiment and studies whether bull and bear cycles in sentiment metrics explain long-short portfolio returns sorted by market capitalisation, firm age, total risk, research and development, book-to-market, sales growth, among others. Journal: Int. J. of Banking, Accounting and Finance Pages: 115-144 Issue: 1 Volume: 13 Year: 2022 Keywords: investor sentiment; aggregation approaches; bull markets; bear markets; sentiment metrics. File-URL: http://www.inderscience.com/link.php?id=121567 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:13:y:2022:i:1:p:115-144