BANK FAILURE PREDICTION MODELS FOR THE DEVELOPING AND DEVELOPED COUNTRIES: IDENTIFYING THE ECONOMIC VALUE ADDED FOR PREDICTING FAILURE
Journal Title: Asian Economic and Financial Review - Year 2016, Vol 6, Issue 9
Abstract
This study used data from 2003-2013, and used a logistic model to analyze the factors that influence financial early warning systems in developing and developed countries. We employed a bank capital adequacy ratio less than 8%, Tier I capital ratio less than 4%, and nonperforming loan ratio more than one third to measure bank failure and identify the financial ratio that most accurately predicts bank failure. The results indicate that the economic value added index is more effective than other indexes in predicting bank failure in NAFTA, ASEAN, EU, NIC, and G20 nations.
Authors and Affiliations
Yi-Shu Wang| School of Business, Changzhou University, Changzhou City, Jiangsu Providence, China, Xue Jiang| School of Business, Changzhou University, Changzhou City, Jiangsu Providence, China, Zhen-Jia-Liu*| School of Business, Changzhou University, Changzhou City, Jiangsu Providence, China
Keywords
Related Articles
- EP ID EP2299
- DOI -
- Views 505
- Downloads 39
COULD ZHOU XIAOCHUAN PUT OPTION SAVE CHINA’S CAPITAL MARKET?
This article proposes a new framework to analyze the impact of monetary policy on asset price. Based on the Sign-Restriction Approach proposed by Uhlig (2005) some orthogonal restrictions are imposed to filter out the in...
THE TIME-VARYING IMPACT OF REGIONAL TRADE AGREEMENT: EVIDENCE FROM ASEAN
Regional Trade Agreements such as ASEAN Free Trade Area (AFTA) are expected to increase the trade flows among member countries through trade creation and trade diversion. This paper employs the gravity model using manufa...
Exports-Led Growth Hypothesis in Pakistan: Further Evidence
The study considers the exports-led growth hypothesis using quarterly dataover the period 1990-2008 in case of Pakistan. For this purpose, Ng-Perronunit root test, ARDL bounds testing approach to cointegration and errorc...
ANALYSIS OF FARM HOUSEHOLDS POVERTY STATUS IN OGUN STATES, NIGERIA
The paper examined the poverty status of farm households in Ogun State, Nigeria using a descriptive statistics, Foster, Greer and Thorbecke poverty (FGT) indices and Logit regression model. The data used were generated f...
THE ANOMALY OF 28 DAYS BETWEEN THE EX-DIVIDEND AND PAYMENT DATES IN TAIWANESE STOCK MARKETS
After 16 years of suspension during the leadership of Steve Jobs, Apple now pays cash dividends. Since the death of Jobs, Apple has distributed twelve quarterly dividends. Of these, cash was paid 7 days after the ex-divi...