Anti-corruption and bank performance: Evidence from a socialist-oriented economy

PLoS One. 2023 Oct 9;18(10):e0292556. doi: 10.1371/journal.pone.0292556. eCollection 2023.

Abstract

This current study aims to investigate the impact of anti-corruption on bank performance in Vietnam, an emerging socialist country with a high level of perceived corruption. An increasing number of financial frauds and corruption have been made public in Vietnam as a result of a vigorous anti-corruption drive in the country. Using a news-based approach to measure anti-corruption in Vietnam, the results of our empirical analysis suggest that anti-corruption has a positive impact on the profitability of Vietnamese commercial banks, however, it manifests in the long term. We do not find an immediate impact of anti-corruption on overall bank performance, but we find that bank profit per branch increases under intensified anti-corruption in the country, suggesting that optimizing branch structure is important to Vietnamese bank under uncertainty.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Fraud*
  • Vietnam

Grants and funding

The research is funded by National Economics University, Vietnam. The funder had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.