Bank lending and stock market performance: evidence from ASEAN banks

The purpose of this study is to examine the impact of bank lending on bank stock performance through a panel data evidence on banks in ASEAN. The data for this study is retrieved from the DataStream. The sample consists of 68 listed banks from six countries (Indonesia, Malaysia, Singapore, Philippin...

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Main Author:	Hussein, Ahmed Abbas
Format:	Thesis
Language:	eng eng
Published:	2016
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/6092/1/s815050_01.pdf https://etd.uum.edu.my/6092/2/s815050_02.pdf
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id	my-uum-etd.6092
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Nayan, Sabri
topic	HG Finance
spellingShingle	HG Finance Hussein, Ahmed Abbas Bank lending and stock market performance: evidence from ASEAN banks
description	The purpose of this study is to examine the impact of bank lending on bank stock performance through a panel data evidence on banks in ASEAN. The data for this study is retrieved from the DataStream. The sample consists of 68 listed banks from six countries (Indonesia, Malaysia, Singapore, Philippines, Thailand, and Vietnam) in ASEAN for the period 2000-2014. The results of the Panel Ordinary Least Square estimation showed that bank loans has a negative significant association with the stock performance of banks in ASEAN, implying that the fluctuations in bank lending negatively influence stock price movements, which then reduces stock returns. Bank size shows a positive and significant relationship with bank stock performance, indicating that the size of banks positively influences their stock performance since all the banks selected for this study are large banks listed on the stock exchange of their various countries in ASEAN. Bank capitalization and bank stock performance are positively related, implying that the capital of banks in ASEAN influences their stock performance because these banks have higher capital to asset ratio which make them to have a better margin of cushion and continuous profitability even during difficult periods. Net interest margin has a positive significant relationship with bank stock performance, indicating that interest margin has a positive influence on bank stock performance since ASEAN banks are well capitalized and more effective and which lead to increase in their stock performance. It is recommended that ASEAN banks need to improve in their bank lending policies by increasing their bank loan supply so as to influence stock price movements, and then improve stock returns.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Hussein, Ahmed Abbas
author_facet	Hussein, Ahmed Abbas
author_sort	Hussein, Ahmed Abbas
title	Bank lending and stock market performance: evidence from ASEAN banks
title_short	Bank lending and stock market performance: evidence from ASEAN banks
title_full	Bank lending and stock market performance: evidence from ASEAN banks
title_fullStr	Bank lending and stock market performance: evidence from ASEAN banks
title_full_unstemmed	Bank lending and stock market performance: evidence from ASEAN banks
title_sort	bank lending and stock market performance: evidence from asean banks
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2016
url	https://etd.uum.edu.my/6092/1/s815050_01.pdf https://etd.uum.edu.my/6092/2/s815050_02.pdf
_version_	1747828019966246912
spelling	my-uum-etd.60922021-04-05T02:36:11Z Bank lending and stock market performance: evidence from ASEAN banks 2016 Hussein, Ahmed Abbas Nayan, Sabri School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance The purpose of this study is to examine the impact of bank lending on bank stock performance through a panel data evidence on banks in ASEAN. The data for this study is retrieved from the DataStream. The sample consists of 68 listed banks from six countries (Indonesia, Malaysia, Singapore, Philippines, Thailand, and Vietnam) in ASEAN for the period 2000-2014. The results of the Panel Ordinary Least Square estimation showed that bank loans has a negative significant association with the stock performance of banks in ASEAN, implying that the fluctuations in bank lending negatively influence stock price movements, which then reduces stock returns. Bank size shows a positive and significant relationship with bank stock performance, indicating that the size of banks positively influences their stock performance since all the banks selected for this study are large banks listed on the stock exchange of their various countries in ASEAN. Bank capitalization and bank stock performance are positively related, implying that the capital of banks in ASEAN influences their stock performance because these banks have higher capital to asset ratio which make them to have a better margin of cushion and continuous profitability even during difficult periods. Net interest margin has a positive significant relationship with bank stock performance, indicating that interest margin has a positive influence on bank stock performance since ASEAN banks are well capitalized and more effective and which lead to increase in their stock performance. It is recommended that ASEAN banks need to improve in their bank lending policies by increasing their bank loan supply so as to influence stock price movements, and then improve stock returns. 2016 Thesis https://etd.uum.edu.my/6092/ https://etd.uum.edu.my/6092/1/s815050_01.pdf text eng public https://etd.uum.edu.my/6092/2/s815050_02.pdf text eng public masters masters Universiti Utara Malaysia Abreu, M., & Mendes, V. (2001). Commercial bank interest margins and profitability: evidence for some EU countries. In Pan-European Conference Jointly Organised by the IEFS-UK & University of Macedonia Economic & Social Sciences, Thessaloniki, Greece, May (pp. 17-20). Aebi, V., Sabato, G., & Schmid, M. (2012). Risk management, corporate governance, and bank performance in the financial crisis. Journal of Banking & Finance, 36(12), 3213-3226. Akella, S. R., & Chen, S. J. (1990). Interest rate sensitivity of bank stock returns: Specification effects and structural changes. 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Bank lending and stock market performance: evidence from ASEAN banks

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