IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04875470.html
   My bibliography  Save this paper

Political patronage and banks’ leverage in the Middle Eastern and North African region: A new neural panel regression analysis

Author

Listed:
  • Rihem Braham

    (LSAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, UCBL - Université Claude Bernard Lyon 1 - Université de Lyon)

  • Christian de Peretti

    (ECL - École Centrale de Lyon - Université de Lyon, LSAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon)

  • Lotfi Belkacem

    (Université de Sousse, LAREMFIQ - Laboratory Research for Economy, Management and Quantitative Finance - Institut des Hautes Etudes Commerciales (Université de Sousse))

Abstract

This research examines the effect of political patronage on financing decisions for a sample of 67 commercial banks from the Middle Eastern and North African region for the period 2003–2017. For this purpose, a fixed-effects neural panel model was developed to investigate this relationship, which has not been done in previous research. In contrast to classical panel regression, our model allows for the detection of all possible combinations among the variables. Although scant evidence on a direct impact of the political connection exists, the results reveal that the effect of political patronage on leverage is non-linear through its interaction with bank profitability and efficiency. The non-linear effect is also related to the political and institutional environments.

Suggested Citation

  • Rihem Braham & Christian de Peretti & Lotfi Belkacem, 2023. "Political patronage and banks’ leverage in the Middle Eastern and North African region: A new neural panel regression analysis," Post-Print hal-04875470, HAL.
    • Handle: RePEc:hal:journl:hal-04875470
    DOI: 10.1016/j.qref.2022.08.011
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    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:hal:journl:hal-04875470. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.