The Nexus between Social Capital and Bank Risk TakingReport as inadecuate


The Nexus between Social Capital and Bank Risk Taking


The Nexus between Social Capital and Bank Risk Taking - Download this document for free, or read online. Document in PDF available to download.

1

Institute of International Business, Shanghai University of International Business and Economics, Shanghai 200000, China

2

Department of Economics, Hong Kong Baptist University, Hong Kong

3

School of International Business Administration, Shanghai University of Finance and Economics, 777 Guoding Road, Shanghai 200000, China

4

Department of Economics and Lau Chor Tak Institute of Global Economics and Finance, The Chinese University of Hong Kong, Hong Kong

5

Department of International Economics and Trade, Nanjing University, Nanjing 210000, China





*

Author to whom correspondence should be addressed.



Academic Editor: Michael McAleer

Abstract This study explores social capital and its relevance to bank risk taking across countries. Our empirical results show that the levels of bank risk taking are lower in countries with higher levels of social capital, and that the impact of social capital is mainly reflected by the reduced value of the standard deviation of return on assets. Moreover, the impact of social capital is found to be weaker when the legal system lacks strength. Furthermore, the study considers the impacts of social capital of the banks’ largest shareholders in these countries and finds that high levels of social capital present in these countries exert a negative effect on bank risk taking, but the effect is not strongly significant. View Full-Text

Keywords: social capital; bank risk taking; trust social capital; bank risk taking; trust





Author: Wenjing Xie 1,2, Haoyuan Ding 3 and Terence Tai-Leung Chong 4,5,*

Source: http://mdpi.com/



DOWNLOAD PDF




Related documents