Competition and distress in banks in India: An application of panel data
Financial distress (FD) is a crucial issue that needs to be resolved in time; otherwise, it may adversely influence society’s areas. Therefore, identifying the factors responsible for FD and how these factors affect FD is an exciting area of research. Given this, this paper proposes investigating th...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2022-12-01
|
| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2122177 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850124070206570496 |
|---|---|
| author | Jagjeevan Kanoujiya Shailesh Rastogi Venkata Mrudula Bhimavarapu |
| author_facet | Jagjeevan Kanoujiya Shailesh Rastogi Venkata Mrudula Bhimavarapu |
| author_sort | Jagjeevan Kanoujiya |
| collection | DOAJ |
| description | Financial distress (FD) is a crucial issue that needs to be resolved in time; otherwise, it may adversely influence society’s areas. Therefore, identifying the factors responsible for FD and how these factors affect FD is an exciting area of research. Given this, this paper proposes investigating the effect of competition on the bank’s FD in India. This paper uses the data of 34 banks operating in India for the observation period (2016–2019). Three variants of Altman’s Z-score are used for the assessment of FD. Lerner’s index of the banks is developed for the competition measurement. A panel data analysis is further performed for regression analysis. The current study has an interesting outcome. The findings reveal that high market power or low competition lowers financial distress and adds more financial stability in banks in India. This paper provides fresh evidence on the connection between market power and FD of banks in India. Moreover, no other study has been observed to use all the three variants of Altman’s z-score to provide robustness and reliability in results. Therefore, the study has a significant contribution and a novelty in its approach. |
| format | Article |
| id | doaj-art-ca97cb5cb25e4660b0d96be063929cfe |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-ca97cb5cb25e4660b0d96be063929cfe2025-08-20T02:34:25ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2122177Competition and distress in banks in India: An application of panel dataJagjeevan Kanoujiya0Shailesh Rastogi1Venkata Mrudula Bhimavarapu2Symbiosis International (Deemed University), Pune, IndiaSymbiosis International (Deemed University), Pune, IndiaSymbiosis International (Deemed University), Pune, IndiaFinancial distress (FD) is a crucial issue that needs to be resolved in time; otherwise, it may adversely influence society’s areas. Therefore, identifying the factors responsible for FD and how these factors affect FD is an exciting area of research. Given this, this paper proposes investigating the effect of competition on the bank’s FD in India. This paper uses the data of 34 banks operating in India for the observation period (2016–2019). Three variants of Altman’s Z-score are used for the assessment of FD. Lerner’s index of the banks is developed for the competition measurement. A panel data analysis is further performed for regression analysis. The current study has an interesting outcome. The findings reveal that high market power or low competition lowers financial distress and adds more financial stability in banks in India. This paper provides fresh evidence on the connection between market power and FD of banks in India. Moreover, no other study has been observed to use all the three variants of Altman’s z-score to provide robustness and reliability in results. Therefore, the study has a significant contribution and a novelty in its approach.https://www.tandfonline.com/doi/10.1080/23322039.2022.2122177competitionmarket powerfinancial distressBankruptcyLerner’s index |
| spellingShingle | Jagjeevan Kanoujiya Shailesh Rastogi Venkata Mrudula Bhimavarapu Competition and distress in banks in India: An application of panel data Cogent Economics & Finance competition market power financial distress Bankruptcy Lerner’s index |
| title | Competition and distress in banks in India: An application of panel data |
| title_full | Competition and distress in banks in India: An application of panel data |
| title_fullStr | Competition and distress in banks in India: An application of panel data |
| title_full_unstemmed | Competition and distress in banks in India: An application of panel data |
| title_short | Competition and distress in banks in India: An application of panel data |
| title_sort | competition and distress in banks in india an application of panel data |
| topic | competition market power financial distress Bankruptcy Lerner’s index |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2122177 |
| work_keys_str_mv | AT jagjeevankanoujiya competitionanddistressinbanksinindiaanapplicationofpaneldata AT shaileshrastogi competitionanddistressinbanksinindiaanapplicationofpaneldata AT venkatamrudulabhimavarapu competitionanddistressinbanksinindiaanapplicationofpaneldata |