Basel III and Firm Performance: A Lens of Managerial Ownership

Syed Quaid Ali Shah; Fong Woon Lai; Muhammad Kashif Shad; Mustafa Malik; Kaneez Fatima Sadriwala

doi:10.1007/978-3-031-14395-3_13

Basel III and Firm Performance: A Lens of Managerial Ownership

Syed Quaid Ali Shah^*
, Fong Woon Lai
, Muhammad Kashif Shad
, Mustafa Malik
, Kaneez Fatima Sadriwala

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

4 Scopus citations

Abstract

Subsequent to the global financial crisis (GFC) of 2007–2009, concerns about the financial stability of the banking market were raised around the world including developing countries. As a response to the crisis, the Basel Committee on Banking Supervision (BCBS) promulgated Basel III in 2010 to avert a full-blown crisis. Bank Negara Malaysia announced to adopt the new regulatory reforms in 2013 to improve and enhance Malaysian banks’ risk indicators. Previous literature provides conflicting evidence on the effects of Basel III stringent capital prerequisites and in terms of profitability and the stock market. This study aims to develop a conceptual framework to assess the impact of Basel III on banks’ performance with the moderating role of managerial ownership by integrating Modigliani and Miller proposition and stakeholder theory. ROE and Tobin’s Q are used as proxy variables for measuring bank performance. The study is expected to help and assist policymakers, regulators, and managers in governing the framework which can enhance the overall performance of the banks.

Original language	English
Title of host publication	Eurasian Studies in Business and Economics
Publisher	Springer Science and Business Media B.V.
Pages	237-249
Number of pages	13
DOIs	https://doi.org/10.1007/978-3-031-14395-3_13
State	Published - 2022
Externally published	Yes

Publication series

Name	Eurasian Studies in Business and Economics
Volume	23
ISSN (Print)	2364-5067
ISSN (Electronic)	2364-5075

Bibliographical note

Publisher Copyright:
© 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 10 Reduced Inequalities

Keywords

Basel III
Liquidity ratios
MM proposition
Return on equity
Stakeholder theory
Tobin’s Q

ASJC Scopus subject areas

General Business, Management and Accounting
General Economics, Econometrics and Finance

Access to Document

10.1007/978-3-031-14395-3_13

Cite this

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title = "Basel III and Firm Performance: A Lens of Managerial Ownership",

abstract = "Subsequent to the global financial crisis (GFC) of 2007–2009, concerns about the financial stability of the banking market were raised around the world including developing countries. As a response to the crisis, the Basel Committee on Banking Supervision (BCBS) promulgated Basel III in 2010 to avert a full-blown crisis. Bank Negara Malaysia announced to adopt the new regulatory reforms in 2013 to improve and enhance Malaysian banks{\textquoteright} risk indicators. Previous literature provides conflicting evidence on the effects of Basel III stringent capital prerequisites and in terms of profitability and the stock market. This study aims to develop a conceptual framework to assess the impact of Basel III on banks{\textquoteright} performance with the moderating role of managerial ownership by integrating Modigliani and Miller proposition and stakeholder theory. ROE and Tobin{\textquoteright}s Q are used as proxy variables for measuring bank performance. The study is expected to help and assist policymakers, regulators, and managers in governing the framework which can enhance the overall performance of the banks.",

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author = "Shah, \{Syed Quaid Ali\} and Lai, \{Fong Woon\} and Shad, \{Muhammad Kashif\} and Mustafa Malik and Sadriwala, \{Kaneez Fatima\}",

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year = "2022",

doi = "10.1007/978-3-031-14395-3\_13",

language = "English",

series = "Eurasian Studies in Business and Economics",

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Basel III and Firm Performance: A Lens of Managerial Ownership. / Shah, Syed Quaid Ali; Lai, Fong Woon; Shad, Muhammad Kashif et al.
Eurasian Studies in Business and Economics. Springer Science and Business Media B.V., 2022. p. 237-249 (Eurasian Studies in Business and Economics; Vol. 23).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

TY - CHAP

T1 - Basel III and Firm Performance

T2 - A Lens of Managerial Ownership

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AU - Lai, Fong Woon

AU - Shad, Muhammad Kashif

AU - Malik, Mustafa

AU - Sadriwala, Kaneez Fatima

PY - 2022

Y1 - 2022

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AB - Subsequent to the global financial crisis (GFC) of 2007–2009, concerns about the financial stability of the banking market were raised around the world including developing countries. As a response to the crisis, the Basel Committee on Banking Supervision (BCBS) promulgated Basel III in 2010 to avert a full-blown crisis. Bank Negara Malaysia announced to adopt the new regulatory reforms in 2013 to improve and enhance Malaysian banks’ risk indicators. Previous literature provides conflicting evidence on the effects of Basel III stringent capital prerequisites and in terms of profitability and the stock market. This study aims to develop a conceptual framework to assess the impact of Basel III on banks’ performance with the moderating role of managerial ownership by integrating Modigliani and Miller proposition and stakeholder theory. ROE and Tobin’s Q are used as proxy variables for measuring bank performance. The study is expected to help and assist policymakers, regulators, and managers in governing the framework which can enhance the overall performance of the banks.

KW - Basel III

KW - Liquidity ratios

KW - MM proposition

KW - Return on equity

KW - Stakeholder theory

KW - Tobin’s Q

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M3 - Chapter

AN - SCOPUS:85140301695

T3 - Eurasian Studies in Business and Economics

SP - 237

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BT - Eurasian Studies in Business and Economics

PB - Springer Science and Business Media B.V.

ER -

Basel III and Firm Performance: A Lens of Managerial Ownership

Abstract

Publication series

Bibliographical note

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

Fingerprint

Cite this