5 research outputs found
The effects of cross-border banking and institutional quality on accounting information of banks in Africa
This paper seeks to analyse the implications of cross-border
banking and institutional quality for accounting information quality. We sample
330 banks across 29 African countries and employ system GMM estimator
as a methodological approach to test for two related hypotheses. First, banks
financial statements are prepared on the basis of international accounting
standards as banks cross-border when national institutions are strengthened. We
build on these results and employ various specifications of institutional quality;
the second test suggests that the relative quality of accounting information
among banks in Africa during the period, 2002–2013, is attributed to
cross-border banking, larger market share and the level of transparency
The effects of cross-border banking and institutional quality on accounting information of banks in Africa
This paper seeks to analyse the implications of cross-border
banking and institutional quality for accounting information quality. We sample
330 banks across 29 African countries and employ system GMM estimator
as a methodological approach to test for two related hypotheses. First, banks
financial statements are prepared on the basis of international accounting
standards as banks cross-border when national institutions are strengthened. We
build on these results and employ various specifications of institutional quality;
the second test suggests that the relative quality of accounting information
among banks in Africa during the period, 2002–2013, is attributed to
cross-border banking, larger market share and the level of transparency
The Implications of Cross Border Banking and Funding Strategy for Risk and Return
This paper investigates the effects of cross-border banking and funding modes on risk and return. We sample 320 banks across 29 African countries and employ System GMM estimator as a methodological approach to shed further light on the funding sources-stability nexus by examining the complex interaction between three key constructs: cross-border banking, funding strategy, and bank stability and return. We find that though cross border banking increases insolvency risk, it promotes deposit funding which in turn decreases insolvency risk, implying that when banks cross border, they reduce their inherent instability by employing more of less risky deposit funds and less of wholesale and internally generated funds. Our results also suggest that banks that finance their operations with deposit funds are more profitable than those who employ wholesale and internal funds