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Do management practices and competition levels increase commercial bank profits? Evidence from Can Tho, Viet Nam
Journal of Small Business and Enterprise Development Pub Date : 2021-09-08 , DOI: 10.1108/jsbed-01-2021-0011
Chi Huu Phuong Ho 1 , Kiet Tuan Nguyen 1
Affiliation  

Purpose

Management practices and competition levels have been shown as important factors affecting the performance of enterprises that do not include banks. The paper, thus, aims to measure management practices and to study the effect of management quality and competition level on the performances of the first-level branch of commercial banks in the context of the Viet Nam banking system.

Design/methodology/approach

The study employed the approach of Bloom and Van Reneen (2007) to quantify management practices of the commercial banks. The level of competition was measured by the number of competitors suggested by Nickell (1996) and the index suggested by Boone (2008). Finally, the effects of management practices and competition level on the bank performances were jointly estimated through a Cobb–Douglas production function, similar to the one used by Bloom et al. (2014).

Findings

The results show that the management practices score is, on average, above the average. While the management practices are found to positively correlate with profits, the competition level is found to significantly reduce bank profits.

Research limitations/implications

Cross-sectional data limit the findings of the paper to a point of time. In the future, studies with panel data are desirable.

Practical implications

The findings of the study help bank managers to make more informed decisions about management practices. Any policy promoting new entrants to the banking market should be carefully considered.

Originality/value

The paper is the first to measure the management practices of commercial banks and to explore the impacts of management quality and competition level on bank performances.



中文翻译:

管理实践和竞争水平会增加商业银行的利润吗?来自越南芹苴的证据

目的

管理实践和竞争水平已被证明是影响不包括银行在内的企业绩效的重要因素。因此,本文旨在衡量管理实践,并研究管理质量和竞争水平对越南银行体系背景下商业银行一级分行业绩的影响。

设计/方法/方法

该研究采用 Bloom 和 Van Reneen (2007) 的方法来量化商业银行的管理实践。竞争水平由 Nickell (1996) 建议的竞争者数量和 Boone (2008) 建议的指数来衡量。最后,管理实践和竞争水平对银行绩效的影响通过 Cobb-Douglas 生产函数联合估计,类似于 Bloom等人使用的函数。(2014)。

发现

结果表明,管理实践得分平均高于平均水平。虽然发现管理实践与利润呈正相关,但发现竞争水平会显着降低银行利润。

研究限制/影响

横截面数据将论文的发现限制在一个时间点。将来,需要使用面板数据进行研究。

实际影响

研究结果有助于银行经理就管理实践做出更明智的决策。任何鼓励新进入银行市场的政策都应慎重考虑。

原创性/价值

该论文首次对商业银行的管理实践进行了衡量,并探讨了管理质量和竞争水平对银行绩效的影响。

更新日期:2021-09-08
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