Leverage and performance : do size and crisis matter?

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Interbank market structure, bank conduct, and performance: evidence from the UK

open access articleWe examine whether a concentrated interbank market stimulates bank collusion or monopolistic pricing towards enhancing performance. We explore this nexus by incorporating the role of bank conduct into the structure–performance paradigm. The results show that the interbank market structure provides a channel for banks to collude and engage in monopolistic pricing in the market for bank and business loans to consequently increase bank performance. Further, while the interbank market structure is both profit and cost efficient for non-conglomerate banks, it is cost efficient for foreign banks. Hence, collusion and other anti-competitive behaviours in the interbank market may exacerbate incentives for foreign and non-conglomerate bank entry. We also explored the theoretical and policy implications of these findings. Our results are robust to alternative measures of market structure, bank conduct and performance, and the use of a wide range of specifications and econometric models

Environmental sustainability practices and offshoring activities of multinational corporations across emerging and developed markets

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Environmental Sustainability Practices and Offshoring Activities of Multinational Corporations Across Emerging and Developed Markets

Using panel data of 1080 multinational corporations (MNCs) from the United States, we examine the effects of environmental sustainability practices on the degree of firms’ offshoring activities. In addition, we disaggregate offshoring activities into their core components depending on whether or not the firm buys (inputs) or sells (outputs) and/or owns assets in a given country and examine the extent to which sustainability practices influence the different components of offshoring decisions. The results indicate that sustainability practices significantly affect offshoring activities of MNCs. In particular, we found that sustainable business practices matter when the firm sells goods or owns assets in the given host nation. Additionally, the results show that the sustainability–degree of the internationalization relationship is crucial for MNCs that have offshoring activities in advanced economies relative to those firms that have activities in emerging markets. Our results are robust to alternative explanations

HUMAN IMMUNODEFICIENCY VIRUS, HEPATITIS B VIRUS AND SYPHILIS INFECTIONS AMONG LONGDISTANCE TRUCK DRIVERS IN, A PORT CITY IN GHANA

Background: Although the high prevalence of human immunodeficiency virus (HIV), hepatitis B virus (HBV) and syphilis infections among longdistance truck drivers has been well documented globally, such data are sparse from Africa, and there has been no such data from Ghana. This study carried out between the months of January and June 2013 sought to determine the sero-prevalence and risk factors of HIV, HBV and syphilis infections among long distance truck drivers at the Tema sea port, Ghana. Materials and Methods: Of a total of 800 eligible drivers, 106 (13.25%) drivers consented to take part in the study. Subjects voluntarily completed a risk factor questionnaire and provided blood specimen for testing for HIV, syphilis and the surface antigen of HBV (HBsAg). Results: The mean age of the drivers was 40.56 ± 11.56 years. The sero-prevalence of HIV was 0.94%, 14.2% had HBsAg and reactive syphilis serology was 3.8%. On multivariate analysis, the main determinants of HBV infection were; multiple sexual partnership (OR, 6.36; 95% CI: 1.35– 29.79), patronage of commercial sex workers (OR, 6.85; 95% CI: 0.88 – 52.89), cross-border travelers (OR: 6.89-fold, 95% CI: 0.86 - 55.55) and prolonged duration of trips for more than two weeks (OR: 4.76; 95% CI: 0.59 – 38.02). The main determinant of syphilis infection on multivariate analysis was being a Muslim (OR, 2.19; 95% CI: 0.22 – 21.74). Conclusion: The data indicate a lower sero-prevalence of HIV but a higher sero-prevalence of syphilis. However, the sero-prevalence of HBV infection is comparable to that of the general population

Interbank funding, bank risk exposure and performance in the UK: a three-stage network DEA approach

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.Operating on unsecured interbank markets exposes banks to various risks which trigger changes in bank strategic outcomes such as risk management and performance. This paper proposes a novel three-stage network data envelopment approach with feedback and alliance to examine the importance of bank risk exposures through interbank funding on bank efficiency levels. Our results show that overall bank performance management is achieved via a complement of good alliance between risk and funding, and financial performance. In addition, high financial or overall performance may not imply better risk management or allied process performance. Rather, banks are inherently performance-driven institutions whose performance objectives are independently optimal but aggregately suboptimal. Further analyses show that, for international banks, high financial or overall performance may not necessarily limit high allied process and risk management. Moreover, risk governance in large banks has not improved despite the increased regulatory pressure induced after the 2007-2008 credit crisis. Our results remain robust regardless of whether the alliance or financial performance stage is given priority in the overall efficiency decomposition, and when the novel resource imbalance index is used to assess and enhance the discriminatory power of performance

Bank business models, failure risk and earnings opacity: A short- versus long-term perspective

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link. open access articleDespite the ongoing bank regulatory reforms, relatively little research attention has been given to the effects of bank business models and opacity of bank balance sheet structure which may hinder regulation and market discipline. In this study, we explore the effects of business model strategies on banks’ earnings opacity in the UK banking sector. Distinguishing between the short-term (within) and long-term (between) effects, our findings suggest that retail-oriented business models reduce the likelihood of earnings management practices in the short term but not over the long term. In contrast, wholesale-oriented business models increase the probability of earnings manipulation both in the short and long term. While bank business models characterised by a greater degree of functional diversification tend to lower earnings manipulation in the short term, the long-term incentives cannot be mitigated. Our findings also demonstrate that low failure risk (or greater solvency) represents an important channel in mitigating the effects of business models on earnings management practices both in the short and long term. Our results are robust to alternativ

Environmental sustainability practices and offshoring activities of multinational corporations across emerging and developed markets

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