Investment, Financial, Trade Freedom and Risk-taking: Empirical Evidence from USA

被引：6

作者：

Abbas, Faisal ^{[1
]}

Batool, Noshaba ^{[2
]}

Sulehri, Fiaz Ahmad ^{[3
]}

机构：

[1] Univ Cent Punjab, UCP Business Sch, Lahore, Pakistan

[2] Air Univ Islamabad, Air Univ Sch Management, Islamabad, Pakistan

[3] Univ Lahore, Sch Accountancy & Finance, Lahore, Punjab, Pakistan

来源：

ESTUDIOS DE ECONOMIA APLICADA | 2021年 / 39卷 / 03期

关键词：

Risk-taking; two-step GMM; well-capitalized; and under-capitalized; ECONOMIC-FREEDOM; EFFICIENCY; INSTITUTIONS; BANKING; PANEL;

D O I：

10.25115/eea.v39i2.3736

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This study aims to explore investment, financial, and trade freedom impact on banks' risk-taking. The study uses the dataset of large commercial banks of the USA from 2002-2018. The findings prove that financial freedom reduces the bank's risk-taking, whereas investment and trade freedom increase large commercial banks' risk-taking. The behavior of risk-taking due to financial, trade, and investment freedom of under-capitalized and low-liquid banks seems to be marginally less impacted than well-capitalized and high-liquid banks. The findings are robust using loan loss reserves as a risk measure and subclassification of a sample. The results suggest that government's intervention is decisive in developing the degree of economic freedom for the financial system's stability.

引用

页数：19

共 49 条

[1]

Abbas F., 2019, Global Journal of Social Sciences Studies, V5, P72

[2] The Role of Bank Liquidity and Bank Risk in Determining Bank Capital: Empirical Analysis of Asian Banking Industry [J].