Browsing by Author "Ho TH"
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- ItemBank performance during the COVID-19 pandemic: does income diversification help?(Taylor and Francis Group, 2023-06-11) Ho TH; Nguyen DT; Luu TB; Le TDQ; Ngo TDThe Covid-19 pandemic’s economic effect led to tighter credit standards and a decline in the market for many types of loans. With a rich database of 1,231 banks in 90 countries from 2018Q1 to 2021Q4, we conducted a timely, broad-based international study to investigate whether non-interest activities, serving as a shock absorber, can promote bank performance before and during the Covid−19 pandemic. When using a dynamic panel data model with a system GMM estimator, our findings indicate that banks should be encouraged to diversify their income sources to reduce the adverse effects of the shock. With comparative analysis, we also found heterogeneous effects of income diversification on bank performance by its components, in pre-Covid−19 and during-Covid−19 periods, in both developed and developing countries. This study implies that bank managers should diversify income sources, especially fee-based services, trading activities, and foreign currency, to foster financial performance and stability during exogenous shocks.
- ItemFintech Credit and Bank Efficiency: International Evidence(MDPI (Basel, Switzerland), 2021-08-17) Le TDQ; Ho TH; Nguyen DT; Ngo T; Boubaker SThe expansion of fintech credit around the world is challenging the global banking system. This study investigates the interrelationships between the development of fintech credit and the efficiency of banking systems in 80 countries from 2013 to 2017. The findings indicate a two-way relationship between them. More specifically, a negative relationship between bank efficiency and fintech credit implies that fintech credit is more developed in countries with less efficient banking systems. Meanwhile, a positive impact of fintech credit on the efficiency of banking systems suggests that fintech credit may serve as a wake-up call to the banking system. Therefore, fintech credit should be encouraged by the authorities around the world.
- ItemRecognizing CEOs and Chairmen’s personality and bank performance: new insights from signature analysis(Taylor and Francis Group on behalf of the Chinese Economic Association – UK, 2024-03-30) Le TDQ; Ho TH; Ngo T; Luu TBThis study first uses graphology to examine the signatures of the CEOs and Chairmen of 26 commercial banks in Vietnam (2007-2020) to predict their personalities following the Big Five Personality model. Such personalities are used as a key explanatory variable to explain bank performance. Our findings extend the entrenchment theory that bank profitability is positively affected by the same personality traits of separate CEOs and Chairmen. More specifically, the findings indicate a positive relationship between bank profitability and conscientious and extraverted CEOs and Chairmen. When observing bank ownership, these two categories of personality traits are more critical to listed banks. As the first attempt to investigate whether separate CEO and chairman with the same characteristics may affect bank performance, our study will add more evidence to the existing literature about the relationship between corporate governance and bank profitability.
- ItemThe environment, social and governance (ESG) activities and profitability under COVID-19: evidence from the global banking sector(Emerald insight, 2022-10-20) Yuen MK; Ngo DT; Le TDQ; Ho THPurpose This study investigated the impacts of the environment, social and governance (ESG) and its components on global bank profitability considering the COVID-19 outbreak. Design/methodology/approach This study used a system generalized method of moments (GMM) proposed by Arellano and Bover (1995) to investigate the relationship between ESG and bank profitability using an unbalanced sample of 487 banks from 51 countries from 2006 to 2021. Findings The findings generally found that ESG activities may reduce bank profitability, thus supporting the trade-off hypothesis that adopting ESG standards could increase bank costs while lowering profitability. In addition, there is a U-shaped relationship between ESG and bank profitability, suggesting that ESG activities can help improve bank performance in the long term. Such an effect is the first time observed in the global banking sector. This study’s results are robust across different models and settings (e.g., developed vs. developing countries, different levels of profitability, and samples with vs without US banks). Practical implications This study provides empirical evidence to support many countries' sustainable development policies. It also provides empirical incentives for bank managers to be more ESG-oriented. Originality/value This study provides a better understanding of the roles of ESG activity and its components in the global banking system, considering the recent crises.