This study examines the relationship between bank stock price and its selected fundamentals, namely, profitability, credit risk, and liquidity risk. Using the dynamic common correlated effect (DCCE) technique, we discover a mechanism error-correction between the stock price and the selected...

Purpose - To examine the relationship between the term structure of interest rates of sovereign bonds in emerging nations and their macroeconomic indicators, specifically emphasizing its persistence and interaction with inflation, foreign exchange and fiscal conditions....

Democracy is an essential aspect in national-level governance to safeguard human rights and provide equal distribution of wealth among citizens that are also expected to bolster more rapid economic growth. However, the extant literatures show mixed result in providing evidence of how democracy...

Indonesia ranks sixth globally in terms of wealth distribution inequality. Changes in human capital development may affect labor force efficiency and productivity as well as wages and income inequality levels. This study applies a nonlinear autoregressive distributed lag (NARDL) model to data...

Frictions prevent banks to immediately adjust their capital ratio towards their desired and/or imposed level. This paper analyzes (i) whether or not these frictions are larger for regulatory capital ratios vis-à-vis a plain leverage ratio; (ii) which adjustment channels banks use to adjust...

We aim to assess how accurately accounting and stock market indicators predict rating changes for Asian banks. We conduct a stepwise process to determine the optimal set of early indicators by tracing upgrades and downgrades from rating agencies, as well as other relevant factors. Our results...

This paper investigates the effect of bank competition and financial stability on economic growth by examining panel-data from 38 European countries over 2001 to 2017. Bank competition is measured with the Boone indicator, and bank stability with Z-scores and non-performing loan ratios, all at...