publication . Article . 2016

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

Emmanuel Mamatzakis; Roman Matousek; Anh Nguyet Vu;
Open Access English
  • Published: 01 Nov 2016
  • Publisher: Elsevier
  • Country: United Kingdom
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” hyp...
Subjects
free text keywords: man, H, HG, Economics and Econometrics, Finance, Financial economics, Moral hazard, business.industry, business, Luck, media_common.quotation_subject, media_common, Economics, Causality, Vector autoregression
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