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Investigating Risk Effect and Profit Management on Bank Credit Risk

Author

Listed:
  • Seyedeh Mahtab Farhadvand

    (Department of Accounting, Collage of Humanities, Kermanshah Science and Research Branch, Islamic Azad University, Kermanshah, Iran,)

  • Omid Jalilian

    (Department of accounting Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.)

Abstract

The aim of this research is to investigate risk effect and profit management on bank credit risk. The research population are the accepted banks in Tehran stock exchange during one quinquennial from 2010 to 2014. Finally, 18 corporations information were gathered based on the research limitations by systematic deletion method. The research is an applicational one in term of its aim, is post eventual based on the historical information and its deductive methodology is apriority and correlative. The research includes four main hypotheses and two subordinate hypotheses. To investigate research hypotheses, linear regression and correlation are used. Moreover, Eviews software is used to analyze research data and hypotheses. After designing of the research hypotheses in division of each hypothesis, these conclusions have received. Bank risk and profit management have positive meaningful effect on credit risk. In addition there is a positive meaningful relationship between corporation risk and profit management. Although, there is no positive meaningful effect between bank credit and profit management on credit risk.

Suggested Citation

  • Seyedeh Mahtab Farhadvand & Omid Jalilian, 2017. "Investigating Risk Effect and Profit Management on Bank Credit Risk," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 548-554.
    • Handle: RePEc:eco:journ1:2017-03-72
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    References listed on IDEAS

    as
    1. Castro, Vítor, 2013. "Macroeconomic determinants of the credit risk in the banking system: The case of the GIPSI," Economic Modelling, Elsevier, vol. 31(C), pages 672-683.
    2. Lin, Yi-Mien & Shen, Cheng-An, 2015. "Family firms' credit rating, idiosyncratic risk, and earnings management," Journal of Business Research, Elsevier, vol. 68(4), pages 872-877.
    3. Wang, Junbo & Wu, Chunchi, 2015. "Liquidity, credit quality, and the relation between volatility and trading activity: Evidence from the corporate bond market," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 183-203.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Credit Risk; Profit Management; Commercial Banks Risks;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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