The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial Performance
The aim of this study is to examine the effect of the educational qualifications of bank personnel on Turkish banks. Within the scope of the study, based on the annual data of 21 banks operating in Turkey during the 2004-2019 period. The factors affecting the non-performing loans of banks have been...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2023-08-01
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| Series: | Istanbul Business Research |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/64DD48E328284421A348013F63E22436 |
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| author | Abdulmuttalip Pilatin |
| author_facet | Abdulmuttalip Pilatin |
| author_sort | Abdulmuttalip Pilatin |
| collection | DOAJ |
| description | The aim of this study is to examine the effect of the educational qualifications of bank personnel on Turkish banks. Within the scope of the study, based on the annual data of 21 banks operating in Turkey during the 2004-2019 period. The factors affecting the non-performing loans of banks have been examined with static panel data analysis methods over five different models. A random effects method was used in the analysis. The results show that Non-Performing Loans and Loan Loss Provisions, which are the credit risk indicators of the bank, decreased with the increase in the ratio of personnel with postgraduate education, which is used as a human capital indicator for banks. It reveals that investment in postgraduate personnel reduces the credit risk of banks by less than 1% and at a level of 5% significance. These results were also corroborated by a sensitivity analysis. However, it has been determined that the level of postgraduate education, which is used as a human capital indicator of banks, does not have a significant relationship with the Z-Score, which is an indicator of bankruptcy risk, and Asset on Equity and Return on Equity, which is an indicator of profitability. |
| format | Article |
| id | doaj-art-353c265f8dba43dba62d7d727e30a442 |
| institution | OA Journals |
| issn | 2630-5488 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | Istanbul Business Research |
| spelling | doaj-art-353c265f8dba43dba62d7d727e30a4422025-08-20T02:14:43ZengIstanbul University PressIstanbul Business Research2630-54882023-08-0152240743610.26650/ibr.2023.52.1109060123456The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial PerformanceAbdulmuttalip Pilatin0https://orcid.org/0000-0002-2293-2808Recep Tayyip Erdoğan Üniversitesi, Rize, TurkiyeThe aim of this study is to examine the effect of the educational qualifications of bank personnel on Turkish banks. Within the scope of the study, based on the annual data of 21 banks operating in Turkey during the 2004-2019 period. The factors affecting the non-performing loans of banks have been examined with static panel data analysis methods over five different models. A random effects method was used in the analysis. The results show that Non-Performing Loans and Loan Loss Provisions, which are the credit risk indicators of the bank, decreased with the increase in the ratio of personnel with postgraduate education, which is used as a human capital indicator for banks. It reveals that investment in postgraduate personnel reduces the credit risk of banks by less than 1% and at a level of 5% significance. These results were also corroborated by a sensitivity analysis. However, it has been determined that the level of postgraduate education, which is used as a human capital indicator of banks, does not have a significant relationship with the Z-Score, which is an indicator of bankruptcy risk, and Asset on Equity and Return on Equity, which is an indicator of profitability.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/64DD48E328284421A348013F63E22436non-performing loansfinancial performancehuman capitalcredit risk |
| spellingShingle | Abdulmuttalip Pilatin The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial Performance Istanbul Business Research non-performing loans financial performance human capital credit risk |
| title | The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial Performance |
| title_full | The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial Performance |
| title_fullStr | The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial Performance |
| title_full_unstemmed | The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial Performance |
| title_short | The Effect of Bank Employees with a Postgraduate Education Level on Credit Risk and Financial Performance |
| title_sort | effect of bank employees with a postgraduate education level on credit risk and financial performance |
| topic | non-performing loans financial performance human capital credit risk |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/64DD48E328284421A348013F63E22436 |
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