A Comparison of Credt Risk Management in Private and Public Banks in India

Like other corporations, banks want to create value and seek ways to control risk while aiming to enhance productivity and performance. This is achieved by granting credits to customers from the money deposited by the depositor, thus placing them at risk in the case of defaulting. Despite this risk, banks must continually issue credit since it is the key source of its profitability. This research study assesses the impact of credit risk management on Indian public and private banks during the 2009-2012 period. Using pooled OLS, fixed effects and random effects, the study examines credit risk management in seven private banks and seven public banks. The results show that private banks are more capitalized and more profitable than public banks. In addition, in both cases asset quality measured using non-performing assets with negative coefficients significantly influenced bank profitability. The study extrapolates the importance of regulatory capital and the importance of risk management in ensuring stability in the financial industry

Meeting Stakeholder Needs: Who Should Managers Pay Close Attention To? Evidence from Listed Chinese Manufacturing Companies

Meeting the needs of stakeholders, as an element of CSR, requires a delicate balance of meeting these needs and ensuring profitability. Guided by the legitimacy theory and the stakeholder theory, this paper assesses the significance of meeting stakeholder needs and examines the types of stakeholders that managers pay close attention to. Using a fixed-effects model on 859 Chinese manufacturing firms and a regression analysis, the results show a positive link between corporate social responsibility (CSR) activities and organisational financial performance via both accounting and market measures in the Chinese manufacturing market. Furthermore, the primary objective of companies is to maximise shareholder returns while also meeting societal needs. The results also indicate that responsibility to shareholders and employees and growth potential have significant positive impacts on a company’s market value. This research demonstrates the need for companies to engage in CSR activities, as this can establish an elevated level of financial performance. Furthermore, attention needs to be paid to other stakeholders in corporate CSR activities to engage them and sustain their commitments towards an organisation’s productivity, growth, and sustainability. This is the first study to examine the power of influence from different stakeholders using legitimacy theory. Secondly, it is the first study to evaluate this influence using the Chinese manufacturing industry, which is, arguably, one of the largest in its field

The impact of profitability on capital structure and speed of adjustment: An empirical examination of selected firms in Nigerian Stock Exchange

The aim of the study was to investigate the impacts of capital structure on the performance of Nigerian listed non-financial firms and how these firms adjust to the target capital structure. We tested the Trade-off theory and the pecking order theory and the relevance of these theories to Nigerian firms is confirmed. The speed of adjustment to the target capital structure is determined using both pool OLS and GMM to ensure the robustness of the finding. The descriptive statistics show that leverage constitute 63 percent of the capital structure of Nigerian firms, while leverage is dominated with the short term leverage. We observed that profitability and asset structure were negatively related to leverage while the size of the firm and non-debt tax shield were positively related to leverage. The adjustment speed of Nigerian firms is very high 47% that compares well with studies on non-financial firms done in most developed countries

CSR AND STAKEHOLDERS

The data looks into CSR and various stakeholder