Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/304217 
Year of Publication: 
2023
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 11 [Issue:] 2 [Article No.:] 2260243 [Year:] 2023 [Pages:] 1-20
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This article analyzes the impact of capital structure and bank liquidity on the performance of commercial banks in Vietnam, a transition market in Asia. This research is unique because it is the first study to employ the Bayesian Estimation methods in banking studies. The data includes 463 annual bank-year observations from 37 commercial banks in Vietnam from 2003 to 2020. The Bayesian linear regressions indicate that a higher leverage ratio reduces ROA and ROE while positively empowering EPS. Our findings also document the positive impacts of bank funding liquidity on the performance of commercial banks in Vietnam. Our results are also robust even when employing the Generalized Least Squares estimations. While our results are consistent with the Pecking Order Theory and and prior literature, they do not align with the trade-off theory. Finally, our study contributes implications for policymakers and bank managers to develop the banking system sustainably.
Subjects: 
Bayesian regressions
capital structure
commercial banks
generalized least squares
liquidity
JEL: 
C11
G21
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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