Common theories used in the recent NPL literature
| Rank | Theory | Studies that have used the theory to explain NPL |
|---|---|---|
| 1 | Agency theory | Ngungu and Abdul (2020), Owonye and Obonofiemro (2022), Kim Quoc Trung (2022), Tarchouna et al. (2022), Wengerek et al. (2022) |
| 2 | Moral hazard hypothesis/theory | Mohamad and Jenkins (2021), Lee et al. (2020), Cicchiello et al. (2022) |
| 3 | Stakeholder theory | Kim Quoc Trung (2022), Liu et al. (2023), Iqbal and Nosheen (2023) |
| 4 | Information asymmetry theory | Owonye and Obonofiemro (2022), Do et al. (2020), Olarewaju (2020), Park and Shin (2021) |
| 5 | Financial intermediation theory | Owonye and Obonofiemro (2022), Alnabulsi et al. (2023a) |
| 6 | Market power theory | Ngungu and Abdul (2020) |
| 7 | Capital buffer theory | Ngungu and Abdul (2020) |
| 8 | Liquidity preference theory | Ngungu and Abdul (2020) |
| 9 | Loan pricing theory | Owonye and Obonofiemro (2022) |
| 10 | Trade-off theory | Duong et al. (2023) |
| 11 | Diversification theory | Duong et al. (2023) |
| 12 | Pecking Order theory | Duong et al. (2023) |
| 13 | Modern portfolio theory | Do et al. (2020) |
| 14 | Charter value theory | Cicchiello et al. (2022) |
| Rank | Theory | Studies that have used the theory to explain NPL |
|---|---|---|
| 1 | Agency theory | |
| 2 | Moral hazard hypothesis/theory | |
| 3 | Stakeholder theory | |
| 4 | Information asymmetry theory | |
| 5 | Financial intermediation theory | |
| 6 | Market power theory | |
| 7 | Capital buffer theory | |
| 8 | Liquidity preference theory | |
| 9 | Loan pricing theory | |
| 10 | Trade-off theory | |
| 11 | Diversification theory | |
| 12 | Pecking Order theory | |
| 13 | Modern portfolio theory | |
| 14 | Charter value theory |
Source(s): Google Scholar (from 2020 to mid-2024)
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