Bank competition and corporate risk: Firm‐level evidence from BRIC economies
The study analyzes the potential influence of bank competition on corporate risk‐taking. The study also analyzes the interactive role of firms' dependence on external finance in this framework. We gauge corporate risk through idiosyncratic risk (market‐based measure) and earnings volatility (ac...
Gespeichert in:
Veröffentlicht in: | International journal of finance and economics 2024-10, Vol.29 (4), p.4540-4568 |
---|---|
1. Verfasser: | |
Format: | Artikel |
Sprache: | eng |
Schlagworte: | |
Online-Zugang: | Volltext |
Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
container_end_page | 4568 |
---|---|
container_issue | 4 |
container_start_page | 4540 |
container_title | International journal of finance and economics |
container_volume | 29 |
creator | Khan, Habib Hussain |
description | The study analyzes the potential influence of bank competition on corporate risk‐taking. The study also analyzes the interactive role of firms' dependence on external finance in this framework. We gauge corporate risk through idiosyncratic risk (market‐based measure) and earnings volatility (accounting‐based measure). Analysing firm‐level data for Brazil, Russia, India, and China (BRIC) from 1999 to 2018 through a ‘two‐step dynamic panel system GMM,’ we discover that more (less) competitive (concentrated) banking sectors assist in reducing corporate risk taking. The risk‐reduction effect is specifically stronger for financially dependent and small‐sized firms. The findings remain unchanged when different proxies of financial dependency, banking sector competitiveness, and risk are employed. Further analysis of the ‘transmission mechanism’—the channel by which the extent of banking sector competitiveness influences corporate risk—uncovers that the competitive banking sectors increase firms' access to finance and allow them to operate with lesser financing obstacles. |
doi_str_mv | 10.1002/ijfe.2889 |
format | Article |
fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_3116445638</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>3116445638</sourcerecordid><originalsourceid>FETCH-LOGICAL-c2929-e5e80c4877fb753687773c6cf8223df62983f577d286b8418107c887a6eee20e3</originalsourceid><addsrcrecordid>eNp1kEtOwzAQhi0EEqWw4AaWWLFI60diO-xo1UJRBRKCtZU6Y8ltEhc7FHXHETgjJyGhbFnNP9I3D30IXVIyooSwsVtbGDGl8iM0oCTPE0ozddxnKZKcE3mKzmJcE0JEJskAPU6KZoONr7fQutb5BhdN2fVh60PRAg4ubm7w3IX6-_Orgh1UGHauhMYAtsHXePK8mGIwvvG1g3iOTmxRRbj4q0P0Op-9TO-T5dPdYnq7TAzLWZ5ABoqYVElpVzLjoguSG2GsYoyXVrBccZtJWTIlViqlqnvfKCULAQCMAB-iq8PebfBv7xBbvfbvoelOak6pSNNMcNVR1wfKBB9jAKu3wdVF2GtKdK9L97p0r6tjxwf2w1Ww_x_Ui4f57HfiB6W-bAY</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>3116445638</pqid></control><display><type>article</type><title>Bank competition and corporate risk: Firm‐level evidence from BRIC economies</title><source>Wiley-Blackwell Journals</source><creator>Khan, Habib Hussain</creator><creatorcontrib>Khan, Habib Hussain</creatorcontrib><description>The study analyzes the potential influence of bank competition on corporate risk‐taking. The study also analyzes the interactive role of firms' dependence on external finance in this framework. We gauge corporate risk through idiosyncratic risk (market‐based measure) and earnings volatility (accounting‐based measure). Analysing firm‐level data for Brazil, Russia, India, and China (BRIC) from 1999 to 2018 through a ‘two‐step dynamic panel system GMM,’ we discover that more (less) competitive (concentrated) banking sectors assist in reducing corporate risk taking. The risk‐reduction effect is specifically stronger for financially dependent and small‐sized firms. The findings remain unchanged when different proxies of financial dependency, banking sector competitiveness, and risk are employed. Further analysis of the ‘transmission mechanism’—the channel by which the extent of banking sector competitiveness influences corporate risk—uncovers that the competitive banking sectors increase firms' access to finance and allow them to operate with lesser financing obstacles.</description><identifier>ISSN: 1076-9307</identifier><identifier>EISSN: 1099-1158</identifier><identifier>DOI: 10.1002/ijfe.2889</identifier><language>eng</language><publisher>Chichester, UK: John Wiley & Sons, Ltd</publisher><subject>bank competition ; BRIC ; corporate risk ; earnings volatility ; financial dependence</subject><ispartof>International journal of finance and economics, 2024-10, Vol.29 (4), p.4540-4568</ispartof><rights>2023 John Wiley & Sons, Ltd.</rights><rights>2024 John Wiley & Sons, Ltd.</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><cites>FETCH-LOGICAL-c2929-e5e80c4877fb753687773c6cf8223df62983f577d286b8418107c887a6eee20e3</cites><orcidid>0000-0002-9407-9797</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://onlinelibrary.wiley.com/doi/pdf/10.1002%2Fijfe.2889$$EPDF$$P50$$Gwiley$$H</linktopdf><linktohtml>$$Uhttps://onlinelibrary.wiley.com/doi/full/10.1002%2Fijfe.2889$$EHTML$$P50$$Gwiley$$H</linktohtml><link.rule.ids>314,780,784,1417,27924,27925,45574,45575</link.rule.ids></links><search><creatorcontrib>Khan, Habib Hussain</creatorcontrib><title>Bank competition and corporate risk: Firm‐level evidence from BRIC economies</title><title>International journal of finance and economics</title><description>The study analyzes the potential influence of bank competition on corporate risk‐taking. The study also analyzes the interactive role of firms' dependence on external finance in this framework. We gauge corporate risk through idiosyncratic risk (market‐based measure) and earnings volatility (accounting‐based measure). Analysing firm‐level data for Brazil, Russia, India, and China (BRIC) from 1999 to 2018 through a ‘two‐step dynamic panel system GMM,’ we discover that more (less) competitive (concentrated) banking sectors assist in reducing corporate risk taking. The risk‐reduction effect is specifically stronger for financially dependent and small‐sized firms. The findings remain unchanged when different proxies of financial dependency, banking sector competitiveness, and risk are employed. Further analysis of the ‘transmission mechanism’—the channel by which the extent of banking sector competitiveness influences corporate risk—uncovers that the competitive banking sectors increase firms' access to finance and allow them to operate with lesser financing obstacles.</description><subject>bank competition</subject><subject>BRIC</subject><subject>corporate risk</subject><subject>earnings volatility</subject><subject>financial dependence</subject><issn>1076-9307</issn><issn>1099-1158</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2024</creationdate><recordtype>article</recordtype><recordid>eNp1kEtOwzAQhi0EEqWw4AaWWLFI60diO-xo1UJRBRKCtZU6Y8ltEhc7FHXHETgjJyGhbFnNP9I3D30IXVIyooSwsVtbGDGl8iM0oCTPE0ozddxnKZKcE3mKzmJcE0JEJskAPU6KZoONr7fQutb5BhdN2fVh60PRAg4ubm7w3IX6-_Orgh1UGHauhMYAtsHXePK8mGIwvvG1g3iOTmxRRbj4q0P0Op-9TO-T5dPdYnq7TAzLWZ5ABoqYVElpVzLjoguSG2GsYoyXVrBccZtJWTIlViqlqnvfKCULAQCMAB-iq8PebfBv7xBbvfbvoelOak6pSNNMcNVR1wfKBB9jAKu3wdVF2GtKdK9L97p0r6tjxwf2w1Ww_x_Ui4f57HfiB6W-bAY</recordid><startdate>202410</startdate><enddate>202410</enddate><creator>Khan, Habib Hussain</creator><general>John Wiley & Sons, Ltd</general><general>Wiley Periodicals Inc</general><scope>AAYXX</scope><scope>CITATION</scope><orcidid>https://orcid.org/0000-0002-9407-9797</orcidid></search><sort><creationdate>202410</creationdate><title>Bank competition and corporate risk: Firm‐level evidence from BRIC economies</title><author>Khan, Habib Hussain</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c2929-e5e80c4877fb753687773c6cf8223df62983f577d286b8418107c887a6eee20e3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2024</creationdate><topic>bank competition</topic><topic>BRIC</topic><topic>corporate risk</topic><topic>earnings volatility</topic><topic>financial dependence</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Khan, Habib Hussain</creatorcontrib><collection>CrossRef</collection><jtitle>International journal of finance and economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Khan, Habib Hussain</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Bank competition and corporate risk: Firm‐level evidence from BRIC economies</atitle><jtitle>International journal of finance and economics</jtitle><date>2024-10</date><risdate>2024</risdate><volume>29</volume><issue>4</issue><spage>4540</spage><epage>4568</epage><pages>4540-4568</pages><issn>1076-9307</issn><eissn>1099-1158</eissn><abstract>The study analyzes the potential influence of bank competition on corporate risk‐taking. The study also analyzes the interactive role of firms' dependence on external finance in this framework. We gauge corporate risk through idiosyncratic risk (market‐based measure) and earnings volatility (accounting‐based measure). Analysing firm‐level data for Brazil, Russia, India, and China (BRIC) from 1999 to 2018 through a ‘two‐step dynamic panel system GMM,’ we discover that more (less) competitive (concentrated) banking sectors assist in reducing corporate risk taking. The risk‐reduction effect is specifically stronger for financially dependent and small‐sized firms. The findings remain unchanged when different proxies of financial dependency, banking sector competitiveness, and risk are employed. Further analysis of the ‘transmission mechanism’—the channel by which the extent of banking sector competitiveness influences corporate risk—uncovers that the competitive banking sectors increase firms' access to finance and allow them to operate with lesser financing obstacles.</abstract><cop>Chichester, UK</cop><pub>John Wiley & Sons, Ltd</pub><doi>10.1002/ijfe.2889</doi><tpages>29</tpages><orcidid>https://orcid.org/0000-0002-9407-9797</orcidid><oa>free_for_read</oa></addata></record> |
fulltext | fulltext |
identifier | ISSN: 1076-9307 |
ispartof | International journal of finance and economics, 2024-10, Vol.29 (4), p.4540-4568 |
issn | 1076-9307 1099-1158 |
language | eng |
recordid | cdi_proquest_journals_3116445638 |
source | Wiley-Blackwell Journals |
subjects | bank competition BRIC corporate risk earnings volatility financial dependence |
title | Bank competition and corporate risk: Firm‐level evidence from BRIC economies |
url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-12-25T07%3A28%3A25IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Bank%20competition%20and%20corporate%20risk:%20Firm%E2%80%90level%20evidence%20from%20BRIC%20economies&rft.jtitle=International%20journal%20of%20finance%20and%20economics&rft.au=Khan,%20Habib%20Hussain&rft.date=2024-10&rft.volume=29&rft.issue=4&rft.spage=4540&rft.epage=4568&rft.pages=4540-4568&rft.issn=1076-9307&rft.eissn=1099-1158&rft_id=info:doi/10.1002/ijfe.2889&rft_dat=%3Cproquest_cross%3E3116445638%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=3116445638&rft_id=info:pmid/&rfr_iscdi=true |