Political system of a country and its non-performing loans: a case of emerging markets

Ramiz Ur Rehman, Junrui Zhang and Muhammad Ishfaq Ahmad

International Journal of Business Performance Management, 2016, vol. 17, issue 3, 241-265

Abstract: This paper analyses the trend of non-performing loans over the last one decade in the banking sector of Pakistan. This study also examines the factors which influences on NPLs. Using data from 1998-2009, this paper argues strongly that democratic political system of a country has positive influence on the non-performing loans. It also finds statistical evidence that board size have positive association with non-performing loans while board independence and ownership concentration have negative association with non-performing loans regardless the bank type.

Keywords: banking performance; corporate governance; political environment; non-performing loans; politics; political systems; case study; emerging markets; banking industry; Pakistan; democracy; board size; board independence; ownership concentration; bank types. (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbpma:v:17:y:2016:i:3:p:241-265

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