Since 2014
Government Effectiveness and Value Creation: The Case of Emerging European Listed Banks
Transylvanian Review of Administrative Sciences
View Archive Info| Field | Value | |
| Title |
Government Effectiveness and Value Creation: The Case of Emerging European Listed Banks
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| Creator |
MUNTEANU, Anca; Teaching Assistant, Faculty of Economic, Legal and Administrative Sciences, Petru Maior University, Târgu Mureş, Romania Romanian Group for Corporate Finance, Târgu Mureş, Romania BREZEANU, Petre; Professor, Faculty of Finance, Insurance, Banking and Stock Exchange, Academy of Economic Studies, Bucharest, Romania |
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| Subject |
public administration; government effectiveness; Eastern Europe; banking performance
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| Description |
This study adds to the field of public administration by focusing on the nexus between government decision and bank performance scores highlighting the administrative regulatory dimensions of improvements. To this end, this research paper covers a unique database comprising all listed banks that operate on emerging European markets in the period 2005-2011. Country specific characteristics are presented in the light of public administration quality which includes the dimension of governance quality on the one side, andthe quality and administrative burden on business environment on the other.Bank performance is defined under two different approaches (accounting vs. market based) taking into account different stakeholders interest (state and central bank authority vs. investors).We account for profit persistency by using a Prais-Winsten regression that allows for both autocorrelation and heteroskedasticity in data. The results call attention to the fact that in emerging European markets regulatory glitches have a positive impact upon bank performance. Market imperfections are a source of profitability as they generate a reliable supply of market share appropriation and thus monopoly power. Also, administrative commitment towards increasing the quality of public services and policies endorsed by diminishing the level of corruption will accelerate private development and thus banking profitability.
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| Publisher |
Babes Bolyai University
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| Contributor |
This work was co-fi nanced from the European Social Fund through the Sectoral Operational Programme Human Resources Development 2007-2013
project number POSDRU/107/1.5/S/77213 „Ph.D. for a career in interdisciplinary economic research at the European sta |
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| Date |
2014-06-09
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://rtsa.ro/tras/index.php/tras/article/view/95
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| Source |
Transylvanian Review of Administrative Sciences; 2014: Issue No. 42 E/June; 140-155
18422845 |
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| Language |
eng
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| Relation |
http://rtsa.ro/tras/index.php/tras/article/view/95/91
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| Rights |
Copyright (c) 2014 Transylvanian Review of Administrative Sciences
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