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Cost Stickiness and Banks Credit Risk
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Yasin Fattahi1   , Gholamreza Kordestani2 , Hosein Rastguian3 |
1- MSc in accounting, Imam Khomeini International University, (Correspondent author)
2- Associate professor in accounting, Imam Khomeini International University
3- MSc in accounting, Imam Khomeini International University |
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Abstract: (4106 Views) |
| The credit risk in banks is a function of the profitability and quality of bank assets. Moreover, cost stickiness also affects the quality of assets and profitability of banks. To achieve the research aims, is to explore relationship between cost stickiness and banks credit risk were tested and analyzed is based on pooling data from 21 banks in duration 2012-2019. The findings show that there is a positive and significant relationship between cost stickiness and banks credit risk. In other words, with increasing the cost stickiness, the quality of assets decreases, earnings volatility increases and thus increases the banks credit risk. This study, employing cost stickiness tries to introduce a new index in literature factors of affecting banks credit risk. Since much of the cost behavior is driven by personal motivation and the ability of managers, it is suggested that future research be used as a moderating factor in this relationship |
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| Keywords: Bank, Cost stickiness, Credit risk, Earnings volatility and Quality of assets |
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Full-Text [PDF 1021 kb]
(1379 Downloads)
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Article type: Research |
Subject:
General
Received: 2020/02/29 | Accepted: 2020/06/20 | Published: 2020/06/25
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