Table I. Literature on the linkage... | Emerald Publishing

Table I.

Literature on the linkage between bank capital and performance

References	Country	Data period	Methodology	Findings
Zheng et al. (2017)	Bangladesh	2000-2015	GMM	There is a positive and significant relationship between capital regulations and profitability
Bitar et al. (2016)	MENA	1999-2013	OLS	Significant positive relationship between capital and profit
Berger and Bouwman (2013)	US banking sector	1984-2010	Logit survival regressions and OLS	Capital significantly increases the profitability of medium and large banking sector
Lee and Hsieh (2013)	Asian Banking Sector	1994-2008	GMM	Capital significantly and positively effects on profitability
Mbizi (2012)	Zimbabwe banking sector	_	Description Correlation Method	Significant positive relationship between bank’s capital and its Performance
Naceur and Omran (2011)	Africa banking sector	1989-2005	GMM	There is a significant positive relationship between bank capital and its profitability
Shim (2010)	US banking sector	1993-2004	3SLS	Significant positive associations between bank capital and profitability
Liu and Wilson (2010)	Japanese banking sector	2007-2007	GMM two-step system and fixed effect estimator	Well-capitalized bank leads to higher profitability, and lower capital leads to lower profitability
Ben Naceur and Kandil (2009)	Egypt banking sector	1989-2004	GMM	Higher capital leads to higher profitability of the bank significantly
Pasiouras and Kosmidou (2007)	Europe banking sector	1995-2001	Fixed Effects Regression	There is a positive relationship between capital and profitability
Lin et al. (2005)	Taiwan banking sector	1993-2000	OLS	A significant positive association between financial performances and CAR of the bank
Goddard et al. (2004)	European banking sector	1992-1998	Dynamic panel model	Profitability and capital-to-assets ratio are positively associated with each other
Rime (2001)	Swiss Banking sector	1989-1995	3SLS	Capital has a positive impact on earnings
Demirgüç-Kunt and Huizinga (2000)	Developing and Developed countries	1990-1997	Panel data model	There is a positive relationship between Lagged equity variable and profitability of the bank
Dietrich and Wanzenried (2011)	Switzerland banking sector	1999-2009	GMM	Before global crisis (2007-2008), there is no link between capital and performance. During the crisis, there is a negative relationship between bank capital and performance
Chiuri et al. (2002)	–	–	OLS panel regression	Higher capital leads to a reduction in performance
Guidara et al. (2013)	Canada Banking Industry	1982-2010	GMM	There are no significant positive or negative relationships between capital and profitability
Dietrich and Wanzenried (2011)	Switzerland banking sector	1999-2009	GMM	Before global crisis (2007-2008), there is no link between capital and performance. During the crisis, there is a negative relationship between bank capital and performance
Zhang et al. (2008)	China banking sector	2004-2006	GMM	There is no significant association between changes in capital and changes in profitability

References	Country	Data period	Methodology	Findings
Zheng et al. (2017)	Bangladesh	2000-2015	GMM	There is a positive and significant relationship between capital regulations and profitability
Bitar et al. (2016)	MENA	1999-2013	OLS	Significant positive relationship between capital and profit
Berger and Bouwman (2013)	US banking sector	1984-2010	Logit survival regressions and OLS	Capital significantly increases the profitability of medium and large banking sector
Lee and Hsieh (2013)	Asian Banking Sector	1994-2008	GMM	Capital significantly and positively effects on profitability
Mbizi (2012)	Zimbabwe banking sector	_	Description Correlation Method	Significant positive relationship between bank’s capital and its Performance
Naceur and Omran (2011)	Africa banking sector	1989-2005	GMM	There is a significant positive relationship between bank capital and its profitability
Shim (2010)	US banking sector	1993-2004	3SLS	Significant positive associations between bank capital and profitability
Liu and Wilson (2010)	Japanese banking sector	2007-2007	GMM two-step system and fixed effect estimator	Well-capitalized bank leads to higher profitability, and lower capital leads to lower profitability
Ben Naceur and Kandil (2009)	Egypt banking sector	1989-2004	GMM	Higher capital leads to higher profitability of the bank significantly
Pasiouras and Kosmidou (2007)	Europe banking sector	1995-2001	Fixed Effects Regression	There is a positive relationship between capital and profitability
Lin et al. (2005)	Taiwan banking sector	1993-2000	OLS	A significant positive association between financial performances and CAR of the bank
Goddard et al. (2004)	European banking sector	1992-1998	Dynamic panel model	Profitability and capital-to-assets ratio are positively associated with each other
Rime (2001)	Swiss Banking sector	1989-1995	3SLS	Capital has a positive impact on earnings
Demirgüç-Kunt and Huizinga (2000)	Developing and Developed countries	1990-1997	Panel data model	There is a positive relationship between Lagged equity variable and profitability of the bank
Dietrich and Wanzenried (2011)	Switzerland banking sector	1999-2009	GMM	Before global crisis (2007-2008), there is no link between capital and performance. During the crisis, there is a negative relationship between bank capital and performance
Chiuri et al. (2002)	–	–	OLS panel regression	Higher capital leads to a reduction in performance
Guidara et al. (2013)	Canada Banking Industry	1982-2010	GMM	There are no significant positive or negative relationships between capital and profitability
Dietrich and Wanzenried (2011)	Switzerland banking sector	1999-2009	GMM	Before global crisis (2007-2008), there is no link between capital and performance. During the crisis, there is a negative relationship between bank capital and performance
Zhang et al. (2008)	China banking sector	2004-2006	GMM	There is no significant association between changes in capital and changes in profitability

Note:

Own elaboration