Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289237 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 9 [Issue:] 1 [Article No.:] 2119675 [Year:] 2022 [Pages:] 1-17
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The study aims to estimate the effect of leverage on non-performing loans in Vietnamese commercial banks from 2010 to 2020. This article uses qualitative (expert interviews, namely senior credit officers' and credit managers' surveys to find out the expert consensus coefficient) and quantitative research methods (Generalized Method of Moments to solve the endogeneity). The findings show that leverage is a statistically significant factor and negatively affects non-performing loans. In line with corporate governance theories, such as agency theory and stakeholder theory, this study emphasizes the significant role of the leverage ratio in dealing with non-performing loans at commercial banks in Vietnam during the COVID-19 pandemic. Besides, the study also highlights effective mechanisms to control and mitigate non-performing loans in the credit granting process.
Subjects: 
COVID-19
Vietnam
non-performing loans
commercial banks
leverage ratio
SGMM
JEL: 
G21
M10
H81
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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