The relationship between internal control and credit risk – The case of commercial banks in Vietnam

This study examines whether the agency problem regarding credit risk is a useful corporate governance mechanism for controlling credit risk. For this purpose, we estimate the impact of internal control and agency problems on credit risk in commercial banks in Vietnam from 2009 to 2018. First, in lin...

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Autor principal:	Nguyen Kim Quoc Trung
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	credit risk internal control agency problem leverage ratio bank Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/0c005fa43aab4e39b970ab623758ac7e
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spelling	oai:doaj.org-article:0c005fa43aab4e39b970ab623758ac7e2021-12-02T17:26:04ZThe relationship between internal control and credit risk – The case of commercial banks in Vietnam2331-197510.1080/23311975.2021.1908760https://doaj.org/article/0c005fa43aab4e39b970ab623758ac7e2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1908760https://doaj.org/toc/2331-1975This study examines whether the agency problem regarding credit risk is a useful corporate governance mechanism for controlling credit risk. For this purpose, we estimate the impact of internal control and agency problems on credit risk in commercial banks in Vietnam from 2009 to 2018. First, in line with corporate governance theory, we find that the agency problem is a statistically significant variable in the model. This result expands the existing literature. Second, we show that internal control is a mechanism to resolve the conflict of interest between the principal and agent. The author especially emphasizes the unchanged correlation of each independent variable to the dependent variable during the merger and restructuring of Vietnamese commercial banks in 2015.Nguyen Kim Quoc TrungTaylor & Francis Grouparticlecredit riskinternal controlagency problemleverage ratiobankBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	credit risk internal control agency problem leverage ratio bank Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	credit risk internal control agency problem leverage ratio bank Business HF5001-6182 Management. Industrial management HD28-70 Nguyen Kim Quoc Trung The relationship between internal control and credit risk – The case of commercial banks in Vietnam
description	This study examines whether the agency problem regarding credit risk is a useful corporate governance mechanism for controlling credit risk. For this purpose, we estimate the impact of internal control and agency problems on credit risk in commercial banks in Vietnam from 2009 to 2018. First, in line with corporate governance theory, we find that the agency problem is a statistically significant variable in the model. This result expands the existing literature. Second, we show that internal control is a mechanism to resolve the conflict of interest between the principal and agent. The author especially emphasizes the unchanged correlation of each independent variable to the dependent variable during the merger and restructuring of Vietnamese commercial banks in 2015.
format	article
author	Nguyen Kim Quoc Trung
author_facet	Nguyen Kim Quoc Trung
author_sort	Nguyen Kim Quoc Trung
title	The relationship between internal control and credit risk – The case of commercial banks in Vietnam
title_short	The relationship between internal control and credit risk – The case of commercial banks in Vietnam
title_full	The relationship between internal control and credit risk – The case of commercial banks in Vietnam
title_fullStr	The relationship between internal control and credit risk – The case of commercial banks in Vietnam
title_full_unstemmed	The relationship between internal control and credit risk – The case of commercial banks in Vietnam
title_sort	relationship between internal control and credit risk – the case of commercial banks in vietnam
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/0c005fa43aab4e39b970ab623758ac7e
work_keys_str_mv	AT nguyenkimquoctrung therelationshipbetweeninternalcontrolandcreditriskthecaseofcommercialbanksinvietnam AT nguyenkimquoctrung relationshipbetweeninternalcontrolandcreditriskthecaseofcommercialbanksinvietnam
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The relationship between internal control and credit risk – The case of commercial banks in Vietnam

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