Bank Opacity and Risk-Taking: The Moderating Role of Competition | ||
| مجلة البحوث المحاسبية | ||
| Article 16, Volume 10, Issue 4, December 2023, Pages 314-349 PDF (1.09 M) | ||
| DOI: 10.21608/abj.2023.334155 | ||
| Authors | ||
| Omnia Mostafa Mohamed Bekir1; Modather Taha Abo El-kheer2; Mona Atef Ganna3 | ||
| 1Faculty of Commerce Tanta University | ||
| 2Professor of Financial Accounting, and Former Vice-President of Tanta University for Education and Student Affairs | ||
| 3Lecturer of Accounting Faculty of Commerce Tanta University | ||
| Abstract | ||
| Purpose: This study examines the influence of bank opacity on banks’ risk-taking. It also investigates whether bank competition can affect the strength of the relationship between bank opacity and risk-taking. Design/Methodology/Approach: Using annual data obtained from 9 listed Egyptian banks over the 2010 – 2019 period (10 years), the study assessed risk-taking using Z-score, bank opacity utilizing the ratio of Available-For-Sale (AFS) securities to Total Assets (TA), and competition is measured by Lerner Index. The Random Effect Generalized Least Square (RE GLS) model is utilized for empirical analysis. Findings: Results show that bank opacity has a negative insignificant effect on the financial stability of banks. Competition also has a negative insignificant effect on banks’ stability. However, bank competition positively and significantly moderates the relationship between bank opacity and risk-taking. Originality/Value: The study contributes to the banking literature by offering evidence on opacity-related issues after the Global Financial Crisis (GFC) and the January 25th and June 30th uprisings in Egypt | ||
| Keywords | ||
| Bank opacity; Bank competition; risk-taking; Egypt | ||
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