Determinants of Managerial Behaviour in the Tunisian Banking Industry

ZAGHLA Abdessalem; BOUJELBENE Younes

doi:doi:10.11648/j.ijefm.20130106.21

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Determinants of Managerial Behaviour in the Tunisian Banking Industry

ZAGHLA Abdessalem, BOUJELBENE Younes

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)

Received: 31 August 2013 Published: 20 November 2013

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Abstract

This paper determines management behaviour for Tunisian banking industry between 1989 and 2006. Following the Granger causality, we examine the intertemporal relationships between bank efficiency, loan loss provision and capitalisation. The possible relationships between the variables imply different modes of management behaviour namely bad management, bad luck, skimping, and moral hazard behaviour. We extend the Granger causality model developed by Berger and DeYoung (1997) by applying G.M.M dynamic panel estimators on a panel of Tunisian commercial banks. The econometric results suggest that the intertemporal relationships between the loan loss provision and productive efficiency are checked in only one direction. Our data provide evidence for the bad luck hypothesis suggesting the exogeneity of bad loans triggering inefficiency. In addition, we find no evidence of bad management hypothesis for the Tunisian commercial banks. Thus, these banks adopted a skimping behaviour over 1989-2006 period. Finally, the moral hazard behaviour, according to which the managers of the thinly capitalised banks assume additional portfolio risk, was identified in the context of the Tunisian banks.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 6)
DOI	10.11648/j.ijefm.20130106.21
Page(s)	335-346
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Cost/Profit Efficiency, Granger Causality, Stochastic Frontier Analysis, Managerial Behavior

References

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APA Style

ZAGHLA Abdessalem, BOUJELBENE Younes. (2013). Determinants of Managerial Behaviour in the Tunisian Banking Industry. International Journal of Economics, Finance and Management Sciences, 1(6), 335-346. https://doi.org/10.11648/j.ijefm.20130106.21

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ACS Style

ZAGHLA Abdessalem; BOUJELBENE Younes. Determinants of Managerial Behaviour in the Tunisian Banking Industry. Int. J. Econ. Finance Manag. Sci. 2013, 1(6), 335-346. doi: 10.11648/j.ijefm.20130106.21

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AMA Style

ZAGHLA Abdessalem, BOUJELBENE Younes. Determinants of Managerial Behaviour in the Tunisian Banking Industry. Int J Econ Finance Manag Sci. 2013;1(6):335-346. doi: 10.11648/j.ijefm.20130106.21

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@article{10.11648/j.ijefm.20130106.21,
  author = {ZAGHLA Abdessalem and BOUJELBENE Younes},
  title = {Determinants of Managerial Behaviour in the Tunisian Banking Industry},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {6},
  pages = {335-346},
  doi = {10.11648/j.ijefm.20130106.21},
  url = {https://doi.org/10.11648/j.ijefm.20130106.21},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130106.21},
  abstract = {This paper determines management behaviour for Tunisian banking industry between 1989 and 2006. Following the Granger causality, we examine the intertemporal relationships between bank efficiency, loan loss provision and capitalisation. The possible relationships between the variables imply different modes of management behaviour namely bad management, bad luck, skimping, and moral hazard behaviour. We extend the Granger causality model developed by Berger and DeYoung (1997) by applying G.M.M dynamic panel estimators on a panel of Tunisian commercial banks. The econometric results suggest that the intertemporal relationships between the loan loss provision and productive efficiency are checked in only one direction. Our data provide evidence for the bad luck hypothesis suggesting the exogeneity of bad loans triggering inefficiency. In addition, we find no evidence of bad management hypothesis for the Tunisian commercial banks. Thus, these banks adopted a skimping behaviour over 1989-2006 period. Finally, the moral hazard behaviour, according to which the managers of the thinly capitalised banks assume additional portfolio risk, was identified in the context of the Tunisian banks.},
 year = {2013}
}

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TY  - JOUR
T1  - Determinants of Managerial Behaviour in the Tunisian Banking Industry
AU  - ZAGHLA Abdessalem
AU  - BOUJELBENE Younes
Y1  - 2013/11/20
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130106.21
DO  - 10.11648/j.ijefm.20130106.21
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 335
EP  - 346
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130106.21
AB  - This paper determines management behaviour for Tunisian banking industry between 1989 and 2006. Following the Granger causality, we examine the intertemporal relationships between bank efficiency, loan loss provision and capitalisation. The possible relationships between the variables imply different modes of management behaviour namely bad management, bad luck, skimping, and moral hazard behaviour. We extend the Granger causality model developed by Berger and DeYoung (1997) by applying G.M.M dynamic panel estimators on a panel of Tunisian commercial banks. The econometric results suggest that the intertemporal relationships between the loan loss provision and productive efficiency are checked in only one direction. Our data provide evidence for the bad luck hypothesis suggesting the exogeneity of bad loans triggering inefficiency. In addition, we find no evidence of bad management hypothesis for the Tunisian commercial banks. Thus, these banks adopted a skimping behaviour over 1989-2006 period. Finally, the moral hazard behaviour, according to which the managers of the thinly capitalised banks assume additional portfolio risk, was identified in the context of the Tunisian banks.
VL  - 1
IS  - 6
ER  -

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Author Information

ZAGHLA Abdessalem

Finance at the Higher Institute of Business Administration of Sfax
BOUJELBENE Younes

Quantitative Methods and Director of the Higher Institute of Business Administration of Sfax

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Plain Text BibTeX RIS

APA Style

ZAGHLA Abdessalem, BOUJELBENE Younes. (2013). Determinants of Managerial Behaviour in the Tunisian Banking Industry. International Journal of Economics, Finance and Management Sciences, 1(6), 335-346. https://doi.org/10.11648/j.ijefm.20130106.21

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ACS Style

ZAGHLA Abdessalem; BOUJELBENE Younes. Determinants of Managerial Behaviour in the Tunisian Banking Industry. Int. J. Econ. Finance Manag. Sci. 2013, 1(6), 335-346. doi: 10.11648/j.ijefm.20130106.21

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AMA Style

ZAGHLA Abdessalem, BOUJELBENE Younes. Determinants of Managerial Behaviour in the Tunisian Banking Industry. Int J Econ Finance Manag Sci. 2013;1(6):335-346. doi: 10.11648/j.ijefm.20130106.21

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@article{10.11648/j.ijefm.20130106.21,
  author = {ZAGHLA Abdessalem and BOUJELBENE Younes},
  title = {Determinants of Managerial Behaviour in the Tunisian Banking Industry},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {6},
  pages = {335-346},
  doi = {10.11648/j.ijefm.20130106.21},
  url = {https://doi.org/10.11648/j.ijefm.20130106.21},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130106.21},
  abstract = {This paper determines management behaviour for Tunisian banking industry between 1989 and 2006. Following the Granger causality, we examine the intertemporal relationships between bank efficiency, loan loss provision and capitalisation. The possible relationships between the variables imply different modes of management behaviour namely bad management, bad luck, skimping, and moral hazard behaviour. We extend the Granger causality model developed by Berger and DeYoung (1997) by applying G.M.M dynamic panel estimators on a panel of Tunisian commercial banks. The econometric results suggest that the intertemporal relationships between the loan loss provision and productive efficiency are checked in only one direction. Our data provide evidence for the bad luck hypothesis suggesting the exogeneity of bad loans triggering inefficiency. In addition, we find no evidence of bad management hypothesis for the Tunisian commercial banks. Thus, these banks adopted a skimping behaviour over 1989-2006 period. Finally, the moral hazard behaviour, according to which the managers of the thinly capitalised banks assume additional portfolio risk, was identified in the context of the Tunisian banks.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Determinants of Managerial Behaviour in the Tunisian Banking Industry
AU  - ZAGHLA Abdessalem
AU  - BOUJELBENE Younes
Y1  - 2013/11/20
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130106.21
DO  - 10.11648/j.ijefm.20130106.21
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 335
EP  - 346
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130106.21
AB  - This paper determines management behaviour for Tunisian banking industry between 1989 and 2006. Following the Granger causality, we examine the intertemporal relationships between bank efficiency, loan loss provision and capitalisation. The possible relationships between the variables imply different modes of management behaviour namely bad management, bad luck, skimping, and moral hazard behaviour. We extend the Granger causality model developed by Berger and DeYoung (1997) by applying G.M.M dynamic panel estimators on a panel of Tunisian commercial banks. The econometric results suggest that the intertemporal relationships between the loan loss provision and productive efficiency are checked in only one direction. Our data provide evidence for the bad luck hypothesis suggesting the exogeneity of bad loans triggering inefficiency. In addition, we find no evidence of bad management hypothesis for the Tunisian commercial banks. Thus, these banks adopted a skimping behaviour over 1989-2006 period. Finally, the moral hazard behaviour, according to which the managers of the thinly capitalised banks assume additional portfolio risk, was identified in the context of the Tunisian banks.
VL  - 1
IS  - 6
ER  -

Copy | Download