#3164. Market structure, institutional quality and bank capital ratios: evidence from developing countries

October 2026publication date
Proposal available till 11-05-2025
4 total number of authors per manuscript0 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Finance;
Business and International Management;
Organizational Behavior and Human Resource Management;
Tourism, Leisure and Hospitality Management;
Strategy and Management;
Marketing;
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Abstract:
The research examines a market structure and institutional quality in determining bank capital ratios. The generalised methods are used to control for auto-correlation and endogeneity in a sample of 79 publicly listed commercial banks. The results show that market structure as well as institutional quality lowers bank capital in the sampled banks. This suggests that banks operating in less competitive markets with good regulatory quality do not need to engage in excessive risk-taking activities that would necessitate holding increased level of capital. The research may not be applicable to non-listed banks but for publicly listed commercial banks. This is one of the first researches on the effect of market structure and institutional quality on bank capital ratios.
Keywords:
Bank capital; Competition; Concentration; Endogeneity; Regulatory quality

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