Banks' earnings, risks and returns in China

This study aims to find the effect of financial risks, price risks and market risks on the Earning Response Coefficients (ERC) for China Commercial Banks. The research methodologies use the traditional cumulative abnormal returns and the unexpected earning as the main dependent and independent varia...

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Main Authors: Cheng, Fan Fah, Md Nasir, Annuar
Format: Article
Language:English
Published: David Publishing 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22624/
http://psasir.upm.edu.my/id/eprint/22624/1/Banks%27%20earnings%2C%20risks%20and%20returns%20in%20China.pdf
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author Cheng, Fan Fah
Md Nasir, Annuar
author_facet Cheng, Fan Fah
Md Nasir, Annuar
author_sort Cheng, Fan Fah
building UPM Institutional Repository
collection Online Access
description This study aims to find the effect of financial risks, price risks and market risks on the Earning Response Coefficients (ERC) for China Commercial Banks. The research methodologies use the traditional cumulative abnormal returns and the unexpected earning as the main dependent and independent variables. The evidences show that: (1) There is a strong returns-to-earnings relation for banks; (2) The liquidity risk has information content beyond earnings changes in the returns-to-earnings relation. This probably due to the reason that managers of banks find the level of liquidity that fulfilled the need of investors and at the same time earns good profits for the banks.
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publishDate 2011
publisher David Publishing
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spelling upm-226242015-10-06T01:36:13Z http://psasir.upm.edu.my/id/eprint/22624/ Banks' earnings, risks and returns in China Cheng, Fan Fah Md Nasir, Annuar This study aims to find the effect of financial risks, price risks and market risks on the Earning Response Coefficients (ERC) for China Commercial Banks. The research methodologies use the traditional cumulative abnormal returns and the unexpected earning as the main dependent and independent variables. The evidences show that: (1) There is a strong returns-to-earnings relation for banks; (2) The liquidity risk has information content beyond earnings changes in the returns-to-earnings relation. This probably due to the reason that managers of banks find the level of liquidity that fulfilled the need of investors and at the same time earns good profits for the banks. David Publishing 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22624/1/Banks%27%20earnings%2C%20risks%20and%20returns%20in%20China.pdf Cheng, Fan Fah and Md Nasir, Annuar (2011) Banks' earnings, risks and returns in China. Chinese Business Review, 10 (1). pp. 21-28. ISSN 1537-1506
spellingShingle Cheng, Fan Fah
Md Nasir, Annuar
Banks' earnings, risks and returns in China
title Banks' earnings, risks and returns in China
title_full Banks' earnings, risks and returns in China
title_fullStr Banks' earnings, risks and returns in China
title_full_unstemmed Banks' earnings, risks and returns in China
title_short Banks' earnings, risks and returns in China
title_sort banks' earnings, risks and returns in china
url http://psasir.upm.edu.my/id/eprint/22624/
http://psasir.upm.edu.my/id/eprint/22624/1/Banks%27%20earnings%2C%20risks%20and%20returns%20in%20China.pdf