The Key Factors Influencing the Leverage of Thai Banks During the pre- AFC and the post-AFC Periods  

Oleh:

Nilapornkul, Napaporn ; Powell, Robert John ; Yong, Jaime

Jenis: Article from Proceeding
Dalam koleksi: The International Symposium on Social Sciences (TISSS) and Hong Kong International Conference on Education, Psychology and Society (HKICEPS) at Hongkong, December 2013, page 644-652.
Topik: Leverage; Distance to default; Conditional value at risk; Panel data analysis
Fulltext: Hong Kong-Conference 104.pdf (687.21KB)

Isi artikel

The aim of this study is examine the determinants of Thai banks’ leverage before and after the Asian financial crisis (AFC). Comparison of the determinants between these two periods is a major differentiation point from any prior studies. The data spans a 23 year period from 1990 – 2012, including the AFC and Global financial crisis (GFC). Fixed effects panel data analysis is employed. This paper found that the AFC and GFC strongly impacted on market leverage, whereas only the AFC significantly effected on book leverage. The study showed several changes in the significance and signs of explanatory variables before and after the crises. This reflected the outcomes of the Thai financial liberisation during the pre-AFC, which led to massive debts in the banking sector, followed by restructuring and greater caution in the banking sector during the post-AFC. The results can assist regulators in understanding the impact of explanatory variables on Thai banks’ leverage across different economic cycles.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali