Table 3

Common theories used in the recent NPL literature

RankTheoryStudies that have used the theory to explain NPL
1Agency theoryNgungu and Abdul (2020), Owonye and Obonofiemro (2022), Kim Quoc Trung (2022), Tarchouna et al. (2022), Wengerek et al. (2022) 
2Moral hazard hypothesis/theoryMohamad and Jenkins (2021), Lee et al. (2020), Cicchiello et al. (2022) 
3Stakeholder theoryKim Quoc Trung (2022), Liu et al. (2023), Iqbal and Nosheen (2023) 
4Information asymmetry theoryOwonye and Obonofiemro (2022), Do et al. (2020), Olarewaju (2020), Park and Shin (2021) 
5Financial intermediation theoryOwonye and Obonofiemro (2022), Alnabulsi et al. (2023a) 
6Market power theoryNgungu and Abdul (2020) 
7Capital buffer theoryNgungu and Abdul (2020) 
8Liquidity preference theoryNgungu and Abdul (2020) 
9Loan pricing theoryOwonye and Obonofiemro (2022) 
10Trade-off theoryDuong et al. (2023) 
11Diversification theoryDuong et al. (2023) 
12Pecking Order theoryDuong et al. (2023) 
13Modern portfolio theoryDo et al. (2020) 
14Charter value theoryCicchiello et al. (2022) 

Source(s): Google Scholar (from 2020 to mid-2024)

or Create an Account

Close subscription notice
Close access options