Browsing by Author "Le TDQ"
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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.
- ItemDigital Credit and Its Determinants: A Global Perspective(MDPI (Basel, Switzerland), 2023-12) Le TDQ; Ngo T; Nguyen DT; Ftiti ZDigital credit has gained much attention from academic researchers, practitioners, and policymakers worldwide. This study empirically evaluates the determinants of digital credit using cross-country data from 2013 to 2019. The conventional ordinary least square regression with fixed effects estimator is used to investigate the factors affecting the growth of digital credit. Our study highlights that the regulatory frameworks of anti-money laundering and terrorist financing, the economy’s innovative capacity, and financial development are significant factors affecting the development of digital credit, especially fintech credit. However, the findings indicate that only the innovation capacity is more critical to the expansion of bigtech credit. Nonetheless, our results provide some important implications for market participants and the authorities in promoting digital credit. Accordingly, this study contributes to the literature on the growth of digital credit when considering the critical roles of money laundering and terrorist financing frameworks and innovation capacity.
- ItemEfficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis(MDPI (Basel, Switzerland), 2023-03) Mai XTT; Nguyen HTN; Ngo T; Le TDQ; Nguyen LP; Ftiti ZThis paper examines the multi-dimensional efficiency of the Islamic banking sector and its determinants, including the impacts of the COVID-19 pandemic. To do that, we use a novel approach of two-stage data envelopment analysis (DEA) double frontiers to evaluate the overall efficiency of 79 Islamic banks across 16 countries (2005–2020). In the first-stage analysis, we found that the Islamic banking sector experienced an increasing trend in its efficiency and performance, even during the recent pandemic, although it varied across banks and countries. Our empirical results of the second-stage analysis further showed that economic development can help countries both withstand the recent pandemic and improve the efficiency and performance of their (Islamic) banking system. This, in turn, could help speed up the recovery process of the global economy. Since there is evidence that the Islamic banking sector is resilient to the COVID-19 pandemic, it is expected that this sector will be a driving force of such recovery.
- ItemPredicting the performance of MSMEs: a hybrid DEA-machine learning approach(Springer Science+Business Media, LLC, 2023-02-14) Boubaker S; Le TDQ; Ngo T; Manita RMicro, small and medium enterprises (MSMEs) dominate the business landscape and create more than half of employment worldwide. How we can apply big data analytical tools such as machine learning to examine the performance of MSMEs has become an important question to provide quicker results and recommend better and more reliable solutions that improve performance. This paper proposes a novel method for estimating a common set of weights (CSW) based on regression analysis for data envelopment analysis (DEA) as an important analytical and operational research technique, which (i) allows for measurement evaluations and ranking comparisons of the MSMEs, and (ii) helps overcome the time-consuming non-convexity issues of other CSW DEA methodologies. Our hybrid approach used several econometric and machine learning techniques (such as Tobit, least absolute shrinkage and selection operator, and Random Forest regression) to empirically explain and predict the performance of more than 5400 Vietnamese MSMEs (2010‒2016), and showed that the machine learning techniques are more efficient and accurate than the econometric ones. Our study, therefore, sheds new light on the two-stage DEA literature, especially in terms of predicting performance in the era of big data to strengthen the role of analytics in business and management.
- 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.
- ItemRevisiting the Quiet-Life Hypothesis in the Banking Sector: Do CEOs’ Personalities Matter?(MDPI (Basel, Switzerland), 2024-03-20) Le TDQ; Nguyen DT; Ngo T; Bolton BThis study investigates the relationship between market power and bank profitability, and the impacts of CEOs’ personality traits, in Vietnam from 2007 to 2020. The analysis of CEOs’ signatures is used to determine their characteristics. The findings support the quiet-life hypothesis, which suggests that the negative relationship between market power and bank profitability may depend on CEOs’ characteristics. More specifically, the results show that conscientious CEOs with market power tend to reduce bank profitability, and this effect is more pronounced for foreign-owned banks. Therefore, our findings have critical implications for bank management.
- 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.
- ItemThe trade-off frontier for ESG and Sharpe ratio: a bootstrapped double-frontier data envelopment analysis(Springer Science+Business Media, LLC, 2023-07-24) Boubaker S; Le TDQ; Manita R; Ngo TThe trade-off between the returns and the risks associated with the stocks (i.e., the Sharpe ratio, SR) is an important measure of portfolio optimization. In recent years, the environmental, social, and governance (ESG) has increasingly proven its influence on stocks’ returns, resulting in the evolvement from a two-dimensional (i.e., risks versus returns) into a multi-dimensional setting (e.g., risks versus returns versus ESG). This study is the first to examine this setting in the global energy sector using a (slacks-based measures, SBM) ESG-SR double-frontier double-bootstrap (ESG-SR DFDB) by studying the determinants of the overall ESG-SR efficiency for 334 energy firms from 45 countries in 2019. We show that only around 11% of our sampled firms perform well in the multi-dimensional ESG-SR efficient frontier. The 2019 average (in)efficiency of the global energy sector was 2.273, given an efficient level of 1.000. Besides the differences in the firm’s input/output utilization (regarding their E, S, G, and SR values), we found that the firm- (e.g., market capitalization and board characteristics) and country-level characteristics (e.g., the rule of law) have positive impacts on their ESG-SR performance. Such findings, therefore, are essential not only to the (responsible) investors but also to managers and policymakers in those firms/countries.