Is Bank Performance What it is, in Light of Bank Earnings Management and Bank Market Structure? – Evidence from the Emerging and the Frontier Markets
Posted: 24 Sep 2011
Date Written: September 19, 2011
Abstract
We investigate if local banks performance in the emerging or frontier market is affected by the extent to which managers manipulate their financial statements and by the banking market structure. An aberration from the extant literatures that have either focused mainly on the developed societies or juxtapose a handful of emerging countries bank into their datasets, here our inquest and analyses are fixed on emerging markets. Our investigation find that earnings management as proxy by loan loss allowance and market structure as proxy by bank concentration ratio were inversely statistically significant on their effects to local bank performance.
Keywords: Bank, Performance, Earnings Management, Market Structure, Emerging Market, GMM
JEL Classification: C36, G21, M41, M42
Suggested Citation: Suggested Citation