Date of Award

2016

Publisher

North Dakota State University

Document Type

Thesis

Degree Awarded

Master of Science (MS)

Program

Agribusiness and Applied Economics

Department

Agribusiness and Applied Economics

College

Agriculture, Food Systems and Natural Resources

Faculty Advisor

Larsen, Ryan

Description

The objective of this paper is to analyze the impact of farm-level risk on bank performance in the state of North Dakota. Farm-level risk has been quantified into a single measure of the volatility of net farm income. Bank performance was examined through two profitability ratios, ROE and ROA, as well as a measure of liquidity risk, the financing gap ratio. Using random effects regression model, relationships between performance measures and bankspecific, agricultural and macroeconomic variables were examined. Panel data from banks and farms in North Dakota for the years 2005-2014 were included. Each type of variable showed significance to performance ratios indicating meaningful relationships with internal factors and macroeconomic factors alike. Results also showed that variability in business operations of bank financed companies is also relevant to bank performance. Continued risk management within financial institutions is vital to maintaining or increasing performance.

Rights

NDSU policy 190.6.2

Rights Link

https://www.ndsu.edu/fileadmin/policy/190.pdf

Handle Identifier

https://hdl.handle.net/10365/28043

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