Expert political risk opinions and banking system returns: A revised banking market model.
Human behaviour in banking and finance 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 asymme...
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Published: |
2007
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/26343 |
| _version_ | 1848751959833575424 |
|---|---|
| author | Simpson, John |
| author_facet | Simpson, John |
| author_sort | Simpson, John |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Human behaviour in banking and finance 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 findins 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 | 2025-11-14T08:01:01Z |
| format | Working Paper |
| id | curtin-20.500.11937-26343 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:01:01Z |
| publishDate | 2007 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-263432017-01-30T12:53:02Z Expert political risk opinions and banking system returns: A revised banking market model. Simpson, John and reisks scores Political risk exogeneity international banking market model Human behaviour in banking and finance 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 findins 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. 2007 Working Paper http://hdl.handle.net/20.500.11937/26343 fulltext |
| spellingShingle | and reisks 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 reisks scores Political risk exogeneity international banking market model |
| url | http://hdl.handle.net/20.500.11937/26343 |