This study investigates the impacts of various organizational ethical climates (egoism, principle, benevolence) on individual performance of bank employees. The research is conducted on the sample consisting of employees working in the commercial banks with less than 50% of state capital in Vietnam. The total of 364 valid complete questionnaires are input into SPSS database for processing. The research model and hypotheses are tested using the technique of Structural Equation Modeling. The research results show that different perceptions on organization ethical environment would lead to different individual performance. When the employee perceives his/her ethical environment as Eegoism, productivity, quality, and work efficiency would be significantly higher than those of the environments of benevolence. No impact, however, is identified of principle ethical environment on employees’ performance.
2025, Journal of Asian Business and Economic Studies
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Abstract
Purpose
This research examines the relationship between market power and liquidity creation in the specific context of bank profitability in the Vietnamese banking sector.
Design/methodology/approach
The study applies the methodology proposed by Berger and Bouwman (2009) to demonstrate the creation of bank liquidity through a three-step procedure for investigating the relationship between market power and liquidity creation. The three steps include non-fat liquidity (NFLC), fat liquidity (FLC) and system generalized method of moments estimation for panel data.
Findings
This study finds that liquidity creation increases when a bank has high market power. Further, highly profitable banks positively impact the market power of banks with regard to liquidity creation, relative to less profitable banks. Moreover, bank size, capital, economic growth and interest rate negatively influence bank liquidity creation, while credit risk positively relates to bank liquidity creation.
Research limitations/implications
Measurements used in this study are based on the works of Berger and Bouwman (2009). There are specific variations, relative to Basel III. In addition, other variables significantly impact bank liquidity creation that have not been considered in the models, and a quadratic model should have been considered to measure market power and bank liquidity creation.
Practical implications
This study suggests that managers should control the liquidity of their banks by supervising vulnerable characteristics that have been mentioned herein and emphasizing improvements in profitability. Further, the government may consider encouraging banks to generate more liquidity by modifying regulations concerned with market power or reinforcing policies about improving the transparent business environment.
Originality/value
This study characterizes an attempt to examine the influence of market power on the liquidity creation of banks in Vietnam, which represents one of the most dynamic systems in Asia, with several varied participating banks. The current study also examines the same within the specific context of the modifying impact of the profitability of banks.
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