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 580
- Downloads 39
OIL PRICE VOLATILITY AND ITS CONSEQUENCES ON THE GROWTH OF THE NIGERIAN ECONOMY: AN EXAMINATION (1970-2010)
This study examines the consequences of oil price volatility on the growth of the Nigerian economy within the period 1970 to 2010. Using quaterly data and employing the VAR methodology, the study finds that of the six va...
COMPARATIVE STUDY BETWEEN MALAYSIA AND NIGERIA FORMAL LOW COST HOUSING POLICY ISSUES
The current practice housing policies of Malaysia and Nigeria did not highlight on the affordability of formal low cost houses. There are no laws, sections or guidelines regulating the affairs of formal low cost housing....
NONLINEAR ANALYSIS OF ECONOMIC GROWTH, PUBLIC DEBT AND POLICY TOOLS
This paper empirically analyzes the nonlinear relation between real GDP growth per capital and public debt by employing ADL test for threshold cointegration method. Empirical results show that there exists a threshold co...
EXPORT LED GROWTH OR GROWTH LED EXPORT HYPOTHESIS IN INDIA: EVIDENCE BASED ON TIME-FREQUENCY APPROACH
A plethora of research activity on the relationship between a country’s export and economic growth has produced ambiguous and mixed results. We reinvestigate this relationship using the methodology of wavelets based corr...
Long-Run and Short-Run Dynamics among the Sectoral Stock Indices: Evidence from Turkey
This paper investigates the short-run and long-run dynamics among the major sectoral stock indices of the Istanbul Stock Exchange over the period 1997-2011. Long-run relationship among these indices is analyzed by using...