Year of Graduation
The Impact of Credit Risk on Market Capitalization of Commercial Banks in Developing Capital Markets
Financial Markets and Financial Institutions
As part of this study analyzes the impact of credit risk indicators in the bank's financial statements: the overdue loans, transfers to reserves for loan losses and write-downs of loans on their market capitalization. Particular attention is paid to the contributions to reserves for loan losses, as in the determination of the magnitude of this article bank management opportunities for manipulation are highest. Also, an attempt is made to analyze how these items are subject to manipulation by the management of banks and some additional information, in addition to credit risk, they contain.