Expert political risk opinions and banking system returns: a revised banking market model

Human behaviour in banking and financial systems is in part made up of a complex mix of political, social and cultural factors. These factors are reflected in expert opinion based political risk scores. Market inefficiency is largely a result of anomalies in human behaviour causing information asymm...

Full description

Bibliographic Details
Main Author: Simpson, John
Other Authors: Prof. Dr. Mehmet Baha Karan
Format: Conference Paper
Published: Sonsoz Matbaacilik LTD. STI. 2008
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/15227
_version_ 1848748836833460224
author Simpson, John
author2 Prof. Dr. Mehmet Baha Karan
author_facet Prof. Dr. Mehmet Baha Karan
Simpson, John
author_sort Simpson, John
building Curtin Institutional Repository
collection Online Access
description Human behaviour in banking and financial systems is in part made up of a complex mix of political, social and cultural factors. These factors are reflected in expert opinion based political risk scores. Market inefficiency is largely a result of anomalies in human behaviour causing information asymmetries. A basic systemic market model is re-specified into a model for international banking systems, which controls for pure political risk. Samples of developed and developing banking systems are examined. Political risk factors and world banking returns are exogenous in models of country-banking system returns. New political information assists in explaining banking system stock returns. The findings should be of interest to investors in banking stocks. Banking regulators may be assisted in decisions on appropriate levels of regulatory capital as a benchmark for banking systems. The model could help to anticipate financial crises.
first_indexed 2025-11-14T07:11:23Z
format Conference Paper
id curtin-20.500.11937-15227
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T07:11:23Z
publishDate 2008
publisher Sonsoz Matbaacilik LTD. STI.
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-152272022-11-21T06:47:04Z Expert political risk opinions and banking system returns: a revised banking market model Simpson, John Prof. Dr. Mehmet Baha Karan Dr. Ozgur Arslan and risk scores Political risk exogeneity international banking market model Human behaviour in banking and financial systems is in part made up of a complex mix of political, social and cultural factors. These factors are reflected in expert opinion based political risk scores. Market inefficiency is largely a result of anomalies in human behaviour causing information asymmetries. A basic systemic market model is re-specified into a model for international banking systems, which controls for pure political risk. Samples of developed and developing banking systems are examined. Political risk factors and world banking returns are exogenous in models of country-banking system returns. New political information assists in explaining banking system stock returns. The findings should be of interest to investors in banking stocks. Banking regulators may be assisted in decisions on appropriate levels of regulatory capital as a benchmark for banking systems. The model could help to anticipate financial crises. 2008 Conference Paper http://hdl.handle.net/20.500.11937/15227 Sonsoz Matbaacilik LTD. STI. restricted
spellingShingle and risk scores
Political risk
exogeneity
international banking market model
Simpson, John
Expert political risk opinions and banking system returns: a revised banking market model
title Expert political risk opinions and banking system returns: a revised banking market model
title_full Expert political risk opinions and banking system returns: a revised banking market model
title_fullStr Expert political risk opinions and banking system returns: a revised banking market model
title_full_unstemmed Expert political risk opinions and banking system returns: a revised banking market model
title_short Expert political risk opinions and banking system returns: a revised banking market model
title_sort expert political risk opinions and banking system returns: a revised banking market model
topic and risk scores
Political risk
exogeneity
international banking market model
url http://hdl.handle.net/20.500.11937/15227