Abbas, F., Batool, N. and Sulehri, F.A. 2021. Investment, financial, trade freedom and risk-taking: Empirical evidence from USA. Estudios de Economia Aplicada. 39 (3). https://doi.org/10.25115/eea.v39i2.3736
| Title | Investment, financial, trade freedom and risk-taking: Empirical evidence from USA |
|---|---|
| Type | Journal article |
| Authors | Abbas, F., Batool, N. and Sulehri, F.A. |
| Abstract | This study aims to explore investment, financial, and trade freedom impact on banks’ risk-taking. A unique dataset of large commercial banks of the USA covering the period 2002-2018 is used. The findings prove that financial freedom reduces the bank’s risk-taking whereas investment and trade freedom increase the risk-taking of large commercial banks in the observed period. The behavior of risk-taking due to financial, trade and investment freedom of under-capitalized and low-liquid banks seems to be marginally less impacted as compared to well-capitalized and high-liquid banks. The findings are robust using loan loss reserves as a risk measure and subclassification of a sample. The results suggest that the intervention of the government is decisive in developing the degree of economic freedom for the stability of the financial system. |
| Journal | Estudios de Economia Aplicada |
| Journal citation | 39 (3) |
| ISSN | 1133-3197 |
| 1697-5731 | |
| Year | 2021 |
| Publisher | Universidad de Almería |
| Publisher's version | License CC BY-NC-ND 4.0 File Access Level Open (open metadata and files) |
| Digital Object Identifier (DOI) | https://doi.org/10.25115/eea.v39i2.3736 |
| Publication dates | |
| Published | 22 Apr 2021 |
| ISBN | 16975731 11333197 |