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Legal governance and banking efficiency

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  • Wang, Shuwen
  • Luo, Han

Abstract

This study using panel data from 15 middle- and high-income countries between 2000 and 2022. Employing a fixed effects panel model, the analysis also investigates the moderating effect of income inequality on these relationships. The results indicate that the legal environment, corruption control, and regulatory quality all positively contribute to banking efficiency. Moderation analysis reveals that income inequality does not influence the positive effect of the legal environment but strengthens the positive effects of corruption control and regulatory quality. The study suggests that policymakers should prioritize strengthening legal infrastructure and improving regulatory standards to support banking system efficiency.

Suggested Citation

  • Wang, Shuwen & Luo, Han, 2025. "Legal governance and banking efficiency," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005021
    DOI: 10.1016/j.frl.2025.107239
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    References listed on IDEAS

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    Cited by:

    1. Sun, Yaoxin, 2025. "A study of the impact of digital finance on the economic development of Latin American countries," International Review of Financial Analysis, Elsevier, vol. 107(C).
    2. Luo, Zhenxiang, 2025. "Legal environment and corporate litigation risk: A study based on the perspective of media attention," Finance Research Letters, Elsevier, vol. 85(PE).
    3. Li, Bin & Li, Li, 2025. "Financial risk under differences in legal efficiency: An analysis of the moderating effect of judicial transparency," Finance Research Letters, Elsevier, vol. 86(PB).

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