| dc.description.abstract | This study examines the relationship between inefficiency, risk and capital in
Vietnam commercial banking system. What I want to test is whether bank inefficiency
and risk are affected by its capital adequacy level. In this study, measures of inefficiency,
risk, and capital are based on accounting ratios. Data for the study is collected from 23
commercial banks of Vietnam in the period of 2008-2013. The panel data approach is
applied with the execution of a two-stage least squares (2SLS) method. In the first stage
of analysis, INEFF is regressed against CAR, LLRL, NLTA and ROA. Then, in the
second stage of analysis, RISK (represented by LLRL) is regressed against CAR, INEFE,
BDR and LAODEP
On the risk equation, the results indicate CAR and NLTA are significantly
correlated with LLRL while INEFF as well as BDR are not related with LLRL or risk.
On the other hand, in the inefficiency equation, the results indicate CAR, LLRL and
ROA are not related to inefficiency. However, LLRL is proved to be significant. | en_US |
