BIROn - Birkbeck Institutional Research Online

    What is the impact of bankrupt and restructured loans on Japanese bank efficiency?

    Mamatzakis, Emmanuel and Matousek, R. and Vu, A.N. (2016) What is the impact of bankrupt and restructured loans on Japanese bank efficiency? Journal of Banking & Finance 72 (S), S187-S202. ISSN 0378-4266.

    [img]
    Preview
    Text
    JBF JP efficiency.pdf - Author's Accepted Manuscript
    Available under License Creative Commons Attribution Non-commercial No Derivatives.

    Download (399kB) | Preview

    Abstract

    The Japanese banking system provides a distinctive platform for the examination of the long-lasting effect of problem loans on efficiency. We measure technical efficiency by modifying a translog enhanced hyperbolic distance function with two undesirable outputs, identified as problem loans and problem other earning assets. Our unique database allows us to distinguish between bankrupt and restructured loans to investigate the underlying causality between these loans and efficiency. From the flexible panel vector autoregression specification, primary results reveal that bankrupt loans have a positive impact on efficiency related to the “moral hazard, skimping” hypothesis, with the causality originating from bankrupt loans. In contrast, findings for the relationship between restructured loans and efficiency support the “bad luck” hypothesis.

    Metadata

    Item Type: Article
    School: School of Business, Economics & Informatics > Management
    Depositing User: Emmanuel Mamatzakis
    Date Deposited: 06 Mar 2020 06:21
    Last Modified: 10 Jun 2021 06:26
    URI: https://eprints.bbk.ac.uk/id/eprint/30872

    Statistics

    Downloads
    Activity Overview
    185Downloads
    48Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item