Determinants of non-performing loan

This thesis is an amalgamation of three separate studies on the determinants of nonperforming loans (NPL). The first study entitled “the determinants of NPL: A systematic literature review and future research agenda” captures papers published on the determinants of NPL for a period of twenty-five years (i.e. 1997-2022). The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) model is used as a guideline culminating in one hundred and eleven studies around different geographic regions being unearthed. The literature is synthesised into 21 subcategories using an open-coding approach. The result from systematic literature review shows that macroeconomic and bank-specific variables are the most used in determining NPL. Emerging studies using country-specific variables such as corruption, culture, and political instability are very few. The results also show a preponderance of studies, in some regions, while others had little or no study at all. The second paper entitled “The effect of organisational culture on bank NPL” spans 2012 to 2023. The third paper, entitled “The effects of anti-corruption disclosure on NPL”, also spans the same timelines (i.e. 2012-2023). These studies aim to advance knowledge and understanding of the factors that determine NPL, especially in South Saharan Africa. In papers 2 and 3, we conducted our investigation in two phases. The initial stage of the study consisted of three steps and was based on a quantitative evaluation of company reports, using panel data techniques and text analysis. We used annual reports from 2012 to 2023 to create a data set of 125 banks. We collect annual reports of banks from the stock exchanges of various countries in the South Saharan Africa (SSA) and from the banks' websites. We used the fixed-effects as the baseline model. In the second paper, we find a negative and significant correlation between two cultural variables, collaboration (COLLAB) culture control (CNTR) culture, and NPL. We find a positive association between compete (COMPT) culture and NPL. In paper three, we find a negative and highly significant relationship between anti-corruption disclosure and NPL. The results robust to endogeneity tests that mitigate reverse causality and concerns about confounding effects. The findings contribute to our understanding of the factors that influence NPL. The result of this study is important because it will serve as a guide and inform policymakers and management decision makers. The identified gaps in the literature will guide researchers in a worthwhile direction for further research. We contribute directly to the literature on the determinants of NPL by generating the largest systematic literature review (SLR) with one hundred and eleven (111) studies. This SLR offers a clear and comprehensive set of literature on the determinants of NPLs for researchers to enhance further research. Again, we contribute to literature by empirically investigating the relationship between organisational culture and NPL. We are again the first to empirically study the relationship between anti-corruption disclosure and NPLs. These studies offer a significant contribution to existing studies on NPLs and will help both bank management and regulators improve existing policies and regulations.