An Empirical Study of the Impact of Non-performing Assets on Bank Shareholder Value and Investor Confidence

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This empirical study investigates the impact of Non-Performing Assets (NPAs) on bank shareholder value and investor confidence using secondary data analysis. The research synthesizes insights from existing literature and employs a structured approach to analyze NPAs' effects across different types of banks. Drawing on studies that explore NPA management efficiencies, financial performance in cooperative banks, stock market returns mediated by loan performance, and macroeconomic influences on NPAs respectively, this study aims to provide a nuanced understanding of how NPAs influence shareholder value and investor confidence globally. The methodology involves comprehensive data collection from financial statements, stock market data, and regulatory filings. Analytical techniques include regression analysis, correlation studies, and event studies to quantify and interpret the impact of NPAs on stock prices and investor sentiment. The findings will contribute valuable insights into effective NPA management strategies for enhancing bank performance and maintaining investor trust in international financial markets.