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Political Corruption, Political Connection and Bank Performance Responsibility

Author

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  • Mengistu Nega Lakew
  • Ngozi Adeleye

Abstract

Purpose: To examine the Political Corruption, Political Connection and Bank Performance nexus. Design/Methodology/Approach: The study follows a quantitative approach to its research objectives. Specifically, the study attempted to analyse political corruption, political connectedness and Bank profitability nexus for a panel of 15 commercial Banks for the time period of 5-years (2012-2016) using the GMM estimation. Findings: The study found that political corruption, GDP growth rate and cost to income, capital adequacy and non-interest income to total asset ratio are statistically significant variables. Practical Implications: These methods will have a momentous impact on the nature of relationships between political corruption, political connection and bank performance. Originality/Value: based on the findings of the current study policy makers, anticorruption institutions, banks, via others can make informed decisions and judgments. This article is an original content with appropriate references.

Suggested Citation

  • Mengistu Nega Lakew & Ngozi Adeleye, 2020. "Political Corruption, Political Connection and Bank Performance Responsibility," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(3), pages 90-100.
    • Handle: RePEc:ers:ijfirm:v:10:y:2020:i:3:p:90-100
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    References listed on IDEAS

    as
    1. Wu, Huiying & Li, Sihai & Ying, Sammy Xiaoyan & Chen, Xuan, 2018. "Politically connected CEOs, firm performance, and CEO pay," Journal of Business Research, Elsevier, vol. 91(C), pages 169-180.
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    More about this item

    Keywords

    Banks; political corruption; political connection; GMM.;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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