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Managerial Ability and Bank Lending Behavior

Author

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  • Vo, Xuan Vinh
  • Pham, Thi Hoang Anh
  • Doan, Thang Ngoc
  • Luu, Hiep Ngoc

Abstract

This paper investigates the role of latent, unobservable managerial ability on bank lending behavior. The empirical results suggest that more able managed banks produce higher amount of loans. The result is hold regardless of the size of the banks and period of time. We also find that more ably managed banks have greater loan quality. Results are robust to different econometric specifications and alternative classifications of managerial ability.

Suggested Citation

  • Vo, Xuan Vinh & Pham, Thi Hoang Anh & Doan, Thang Ngoc & Luu, Hiep Ngoc, 2021. "Managerial Ability and Bank Lending Behavior," Finance Research Letters, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:finlet:v:39:y:2021:i:c:s1544612319307524
    DOI: 10.1016/j.frl.2020.101585
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    Cited by:

    1. Fall, François Seck & Tchakoute Tchuigoua, Hubert & Vanhems, Anne & Simar, Léopold, 2022. "Investigating the unobserved heterogeneity effect on microfinance social efficiency," LIDAM Discussion Papers ISBA 2022010, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    2. F. S. Fall & H. Tchakoute Tchuigoua & A. Vanhems & L. Simar, 2023. "Investigating the unobserved heterogeneity effect on outreach to women: lessons from microfinance institutions," Annals of Operations Research, Springer, vol. 328(2), pages 1365-1386, September.
    3. Ben Abdesslem, Rim & Chkir, Imed & Dabbou, Halim, 2022. "Is managerial ability a moderator? The effect of credit risk and liquidity risk on the likelihood of bank default," International Review of Financial Analysis, Elsevier, vol. 80(C).
    4. Daniel Ofori‐Sasu & Elikplimi Komla Agbloyor & Saint Kuttu & Joshua Yindenaba Abor, 2023. "Bank lending behaviour and systemic banking crisis in Africa: The role of regulatory framework," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1318-1345, August.

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    More about this item

    Keywords

    Managerial ability; Bank lending behavior; JEL codes; G20; G21;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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