Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5069530 | Finance Research Letters | 2015 | 18 Pages |
Abstract
This paper investigates loan loss provisioning (LLP) behaviour by Vietnamese banks during the period 2006-2012. We test the capital, income-smoothing and cyclical management hypotheses and examine whether the inclusion of X-efficiencies and/or risk control variables influences provisioning behaviour. When the X-efficiency estimates are incorporated into the models, Vietnamese banks do not exhibit counter-cyclical or capital management manipulation by managers, but counter cyclical income smoothing. Yet, the inclusion of risk control variables in X-efficiency scores (either equity or reserves for impaired loans) supports the addition of capital management hypotheses.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Cormac Bryce, Aristeidis Dadoukis, Maximilian Hall, Linh Nguyen, Richard Simper,