IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v10y2020i1p60-70.html
   My bibliography  Save this article

The determinant of capital adequacy ratio: empirical evidence from Vietnamese banks (a panel data analysis)

Author

Listed:
  • Pham Thi Xuan Thoa
  • Nguyen Ngoc Anh
  • Nguyen Khac Minh

Abstract

The purpose of this study is to investigate the determinant of Vietnamese banks' capital adequacy ratio (CAR) by internal banking factors. Secondary data is collected from banks' annual reports in the period of 2009–2015. FGLS method and panel data are used to examine a regression model with CAR is the dependent variable and five independent variables: bank size (SIZE), loans (LOA), loan loss reserve (LLR), liquidity (LIQ), profitability (ROE). The results show that SIZE and LIQ impact negatively on CAR with significant meanings. On the other hand, LLR and LOA also affect CAR negatively but they are insignificant.

Suggested Citation

  • Pham Thi Xuan Thoa & Nguyen Ngoc Anh & Nguyen Khac Minh, 2020. "The determinant of capital adequacy ratio: empirical evidence from Vietnamese banks (a panel data analysis)," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 10(1), pages 60-70.
    • Handle: RePEc:ids:afasfa:v:10:y:2020:i:1:p:60-70
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=104406
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nenubari John Ikue & Joseph Osaro Denwi & John Akin Sodipo & Linus B. Enegesi, 2022. "Bank-specific performance indicators, macroeconomic variables and capital adequacy of Nigerian banking industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 288-299, September.
    2. Md Shah Naoaj, 2023. "Exploring the Determinants of Capital Adequacy in Commercial Banks: A Study of Bangladesh's Banking Sector," Papers 2304.05935, arXiv.org.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:10:y:2020:i:1:p:60-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.