Bank Culture and Bank Liquidity Creation.

Autor: Nguyen, Loan Quynh Thi, Huynh, Luu Duc Toan
Předmět:
Zdroj: Corporate Governance: An International Review; Nov2024, Vol. 32 Issue 6, p1087-1109, 23p
Abstrakt: Research Question/Issue: This study aimed to understand the impact of bank culture on liquidity creation by applying textual analysis to data from US bank holding companies. Research Findings/Insights: The results indicated a substantial connection between bank culture and liquidity creation. Control and collaborative cultures negatively impacted liquidity creation, whereas a competing culture had a positive effect. The negative impacts were stronger in more diversified, experienced, and profitable banks and weaker in larger banks. In complete culture banks, liquidity creation decreased with increased experience and profitability but increased with size. The influence of culture on the different aspects of liquidity creation was similar across the board for overall liquidity generation. Theoretical/Academic Implications: By introducing a new bank culture index, this study offers a unique contribution to the academic understanding of the interplay between organizational culture and financial performance, particularly liquidity creation. Practitioner/Policy Implications: The insights from this study are valuable for bank managers and regulators as they highlight the aspects of bank culture that can be leveraged or adjusted to optimize liquidity creation, thereby informing strategies and policy decisions. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index