IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v47y2022i2-3p170-192.html
   My bibliography  Save this article

Risk management and corruption control: what impact on banking stability? A moderation analysis

Author

Listed:
  • Marwa Sallemi
  • Salah Ben Hamad

Abstract

Insolvency is a huge threat to banking institutions due to the lack of an appropriate technique to measure this risk. This work examines the effect of banking regulation using a set of panel data obtained in 74 banks from ten OECD countries during the period 2006-2016. We have considered macroeconomic and microeconomic parameters to estimate the insolvency risk at these institutions and evaluate the effect of each parameter on the growth of the firm. The results have shown the degree of importance of regulation and banking supervision in some of the sample countries on taking the risk of insolvency that is measured by the Z-score and subsequently the achievement of banking stability. On the one hand, bank capital affects stability positively. On the other hand, the cash risk measured by the increase in the 'LTA' ratio and non-performing loans has a negative effect. In addition, effective corruption control is found to significantly moderate CEO behaviour and, therefore, affect the banks stability.

Suggested Citation

  • Marwa Sallemi & Salah Ben Hamad, 2022. "Risk management and corruption control: what impact on banking stability? A moderation analysis," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 47(2/3), pages 170-192.
    • Handle: RePEc:ids:ijesbu:v:47:y:2022:i:2/3:p:170-192
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=126711
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gammeltoft, Peter & Panibratov, Andrei, 2024. "Emerging market multinationals and the politics of internationalization," International Business Review, Elsevier, vol. 33(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijesbu:v:47:y:2022:i:2/3:p:170-192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.