Authors: Ramiz Ur Rehman; Junrui Zhang; Muhammad Ishfaq Ahmad
Addresses: School of Management, Xi'an Jiaotong University, No. 28, Xianning West Road, Xi'an, Shaanxi, 710049, China ' School of Management, Xi'an Jiaotong University, No. 28, Xianning West Road, Xi'an, Shaanxi, 710049, China ' Public Administration and Law School, Liaoning Technical University, Fuxin, Liaoning, China
Abstract: This paper analyses the trend of non-performing loans over the last one decade in the banking sector of Pakistan. This study also examines the factors which influences on NPLs. Using data from 1998-2009, this paper argues strongly that democratic political system of a country has positive influence on the non-performing loans. It also finds statistical evidence that board size have positive association with non-performing loans while board independence and ownership concentration have negative association with non-performing loans regardless the bank type.
Keywords: banking performance; corporate governance; political environment; non-performing loans; politics; political systems; case study; emerging markets; banking industry; Pakistan; democracy; board size; board independence; ownership concentration; bank types.
International Journal of Business Performance Management, 2016 Vol.17 No.3, pp.241 - 265
Available online: 07 Jun 2016 *Full-text access for editors Access for subscribers Purchase this article Comment on this article