Mixed signals: A regional quantile nexus between bank loan rate and corporate control mechanisms of selected ASEAN economies

• Main Authors: Castro, Francis Angelo, Keh, Kelwin Edrick, Paz, Paule Garence, Reyno, Alberto Miguel
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Bank management > Southeast Asia; Bank loans > Southeast Asia; Interest > Southeast Asia; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6281
• Institution: De La Salle University

This study seeks to shed light to the question: What is the per quantile relationship that exists between an ASEAN bank corporate control mechanisms and the loan interest rate it charges to the clients? The proponents implemented the principal component analysis (PCA), the ordinary least squares (OLS) regression and the quantile regression for panel data (QRPD) in order to empirically determine such relationships across loan quantiles using annual data for the Philippines, Malaysia and Thailand from 2011 to 2015. Results show that board independence depicts a positive relationship in the Philippines, and a negative relationship in Malaysia and Thailand. Next, the CEO separation illustrates a positive relationship in all the countries. Finally, the board size presents a positive relationship in both Philippines and Malaysia however, Thailand exhibits otherwise. Nonetheless, heterogeneity is only pertinent in board size as estimated by the QRPD.