nep-cfn New Economics Papers
on Corporate Finance
Issue of 2017‒08‒13
five papers chosen by
Zelia Serrasqueiro
Universidade da Beira Interior

  1. Ownership structure and bank performance: An emerging market perspective By Mamatzakis, Emmanuel; Zhang, Xiaoxiang; Wang, Chaoke
  2. Dividend taxation in an infinite-horizon general equilibrium model By Pham, Ngoc-Sang
  3. Examining the economic impact and challenges associated with Savings & Loans companies in Ghana By Tweneboah Senzu, Emmanuel
  4. The Effect of Reducing Information Asymmetry on Loan Price and Quantity in the African Banking Industry By Asongu, Simplice
  5. Costly Information Acquisition, Social Networks and Asset Prices: Experimental Evidence By Halim, Edward; Riyanto, Yohanes Eko; Roy, Nilanjan

  1. By: Mamatzakis, Emmanuel; Zhang, Xiaoxiang; Wang, Chaoke
    Abstract: This study investigates whether ownership type does matter for bank performance in an emerging market. By tracing the identity of top owners, I group large shareholder of China’s commercial banks into government, state owned enterprises (SOEs), domestic private investors and foreign investors. These distinct types of shareholders have multiple motivations and incentives, in turn, this will affect how they perform their control rights and monitor over the invested banks. The main findings regarding the impact of ownership structure on bank performance suggest that banks with high state shareholding tend to have poorer performance and low profitability, consistent with much of the literature. In addition, banks with higher domestic privately shareholders are generally operated more profitably. Furthermore, higher foreign ownership may negatively affect bank performance. Moreover, ownership type diversity is positively associated with bank performance, and banks with concentrated ownership are worse performing. My findings are robustness under the different measures of bank performance.
    Keywords: Banks, Ownership structure, Corporate governance
    JEL: G21 G28 G32
    Date: 2017–07–01
  2. By: Pham, Ngoc-Sang
    Abstract: We consider an infinite-horizon general equilibrium model with heterogeneous agents and financial market imperfections. We investigate the role of dividend taxation on economic growth and asset price. The optimal dividend taxation is also studied.
    Keywords: Intertemporal equilibrium, recession, growth, R&D, dividend taxation, asset price bubbles.
    JEL: C62 D31 D91 E44 G10
    Date: 2017–08–03
  3. By: Tweneboah Senzu, Emmanuel
    Abstract: The paper strive to empirically deduce the exact contribution of Savings & Loans companies to Ghana’s economy, and further analyze the extent of it economic impact as against the challenges faced by the industry in support of the development of the financial system in Ghana
    Keywords: Savings & Loans, Financial System of Ghana, Micro-finance Institutions, Banking, Informal Economy, Bank of Ghana
    JEL: G21 G23 G28
    Date: 2017–08–09
  4. By: Asongu, Simplice
    Abstract: The purpose of this study is to assess how information sharing offices affect loan price and quantity in the African banking industry. The empirical evidence is based on a panel of 162 banks in 42 countries for the period 2001-2011. From the Generalised Method of Moments, public credit registries decrease loan price. With instrumental Quantile Regressions, two main findings are established. Public credit registries consistently decrease the price of loans whereas private credit bureaus consistently have the opposite effect. Public credit registries increase loan quantity in bottom quintiles (or banks associated with lower loan quantities) while private credit bureaus increase loan quantity in top quintiles (or banks associated with higher loan quantities).
    Keywords: Information Asymmetry; Financial Access; Africa
    JEL: G20 G29 O16 O55
    Date: 2017–01
  5. By: Halim, Edward; Riyanto, Yohanes Eko; Roy, Nilanjan
    Abstract: We design an experiment to study the implications of information networks for the incentive to acquire costly information, market liquidity, investors' earnings and asset price characteristics in a financial market. Social communication crowds out information production as a result of agent's temptation to free ride on the signals purchased by their neighbors. Although information exchange among traders increases trading volume, improves liquidity and enhances the ability of asset prices to reflect the aggregate amount of information in the market, it fails to improve price accuracy. Net earnings are higher with information sharing due to reduced acquisition of costly signals.
    Keywords: Asymmetric Information, Costly Information Acquisition, Experimental Asset Markets, Social Network, Uncertainty
    JEL: C92 D84 G10 G12 G14
    Date: 2017–08–07

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