International Journal of Social Science & Economic Research
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Title:
DOES BANK RISK DRIVE COMPETITION IN ASIAN EMERGING MARKETS?

Authors:
Hong Xuan Vo, Anh Thi Van Pham, Uyen Thuy Mai Vu

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1Hong Xuan Vo, 2Anh Thi Van Pham, 1,2Uyen Thuy Mai Vu
1. School of Business, International University, Vietnam
2. Vietnam National University, Ho Chi Minh City, Vietnam

MLA 8
Vo, Hong Xuan, et al. "DOES BANK RISK DRIVE COMPETITION IN ASIAN EMERGING MARKETS?" Int. j. of Social Science and Economic Research, vol. 5, no. 5, May 2020, pp. 1152-1171, ijsser.org/more2020.php?id=81. Accessed May 2020.
APA(6)
Vo, H., Pham, A., & Vu, U. (2020, May). DOES BANK RISK DRIVE COMPETITION IN ASIAN EMERGING MARKETS? Int. j. of Social Science and Economic Research, 5(5), 1152-1171. Retrieved from ijsser.org/more2020.php?id=81
Chicago
Vo, Hong Xuan, Anh Thi Van Pham, and Uyen Thuy Mai Vu. "DOES BANK RISK DRIVE COMPETITION IN ASIAN EMERGING MARKETS?" Int. j. of Social Science and Economic Research 5, no. 5 (May 2020), 1152-1171. Accessed May, 2020. ijsser.org/more2020.php?id=81.

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Abstract:
The effect of risk taking on competition is proved by the theoretical model of Spierdijk and Zaouras (2017) and mixed empirical evidence using the US and European data (see e.g. De Guevara et al., 2005; Boyd et al., 2009; Cai, Le, & Vo, 2019). However, it is lack of empirical evidence about the effect of risk taking on competition using data of Asian countries or emerging countries. This paper fills that gap by examining the relationship between risk and competition for a sample of 564 commercial banks and banks holding companies from nine Asian emerging markets for the period 2011-2015. The paper shows that there is no clear relationship between risk-taking and competition in the sample of nine Asian emerging markets. This finding is consistent with that of De Guevara et al. (2005) and, thus, the theoretical model about the effect of risk on competition built by Spierdijk and Zaouras (2017) is confirmed and raises concerns about whether banks control their risk-taking in safe range so that their risk taking does not affect their competition.

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