Impact of Capital Regulation and Market Discipline on Capital Ratio Selection: A Cross Country Study

Ahmed Hunjra (), Qasim Zureigat and Rashid Mehmood
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Qasim Zureigat: Sulaiman AlRajhi School of Business, Sulaiman AlRajhi University, Al Bukariyah 51941, Al Qassim Province, Saudi Arabia
Rashid Mehmood: University Institute of Management Sciences, PMAS-Arid Agriculture University Rawalpindi, Punjab 46000, Pakistan

IJFS, 2020, vol. 8, issue 2, 1-13

Abstract: We aim to analyze the impact of capital regulation and market discipline on capital to risk-weighted assets ratio. We used the panel data of Asian developing-countries banks for the period from 2009 to 2018. We collected data from the financial statements of 73 banks of Pakistan, Jordan, Indonesia, the Philippines, Saudi Arabia, and Thailand. We used the generalized method of moment (GMM) to analyze the results. We find that capital regulation and market disciplines significantly influence the capital ratio in Asian developing countries.

Keywords: market discipline; capital regulation; capital ratios and financial institutions (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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