Anti-corruption and bank performance: Evidence from a socialist-oriented economy
Thang Xuan Nguyen
PLOS ONE, 2023, vol. 18, issue 10, 1-16
Abstract:
This current study aims to investigate the impact of anti-corruption on bank performance in Vietnam, an emerging socialist country with a high level of perceived corruption. An increasing number of financial frauds and corruption have been made public in Vietnam as a result of a vigorous anti-corruption drive in the country. Using a news-based approach to measure anti-corruption in Vietnam, the results of our empirical analysis suggest that anti-corruption has a positive impact on the profitability of Vietnamese commercial banks, however, it manifests in the long term. We do not find an immediate impact of anti-corruption on overall bank performance, but we find that bank profit per branch increases under intensified anti-corruption in the country, suggesting that optimizing branch structure is important to Vietnamese bank under uncertainty.
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0292556
DOI: 10.1371/journal.pone.0292556
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