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The purpose of this study is to investigate the interplay between fiscal dominance and monetary policy in South Africa from 1960 to 2023.
Abstract
Purpose
The purpose of this study is to investigate the interplay between fiscal dominance and monetary policy in South Africa from 1960 to 2023.
Design/methodology/approach
The study employs a structural vector autoregression (SVAR) medel to analyze the relationship between fiscal dominance and monetary policy. Short-term and long-term shocks of government borrowing and deficits are examined to understand their impact on inflation dynamics.
Findings
Fiscal dominance has a significant effect both in the short and long run. There is evidence that government debt and deficits increase inflation, overriding the effects of monetary policy aimed at maintaining price stability. On the other hand, the study reveals that money supply shocks have a greater effect in reducing fiscal dominance compared to interest rate shocks. The variance movement on inflation is significantly explained by government debt and deficits. This emphasizes the persistence of inflationary pressures associated with fiscal dominance, highlighting the importance of effective policy interventions to mitigate inflationary risks.
Originality/value
This study contributes to the existing literature by providing insights into the dynamics of fiscal dominance in South Africa. Moreover, this study extends the theoretical framework of the fiscal theory of the price level (FTPL) and the government budget constraint. This study contributes valuable insights into the dynamics of fiscal dominance in South Africa and offers guidance for policymakers in formulating strategies to safeguard economic stability.
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Fredrick Ishengoma and Elia John
This study aims to establish a comprehensive framework for adopting mobile-based artificial intelligence (AI) services in Tanzanian manufacturing small and medium enterprises…
Abstract
Purpose
This study aims to establish a comprehensive framework for adopting mobile-based artificial intelligence (AI) services in Tanzanian manufacturing small and medium enterprises (SMEs).
Design/methodology/approach
The methodology involved conducting a literature review and using the combination of Mobile Services Acceptance Model and Innovation Diffusion Theory (IDT) as a theoretical foundation. This synthesis delves into the current knowledge on technology adoption, organizational behavior and innovation diffusion, creating a solid conceptual basis. Expert review was used for framework validation to ensure the framework's accuracy.
Findings
This study shows that the factors influencing the adoption of mobile-based AI services in Tanzanian manufacturing SMEs include perceived usefulness, perceived ease of use, context, personal initiatives and characteristics, trust, infrastructure, cost, mobility, power distance, compatibility, observability and trialability.
Research limitations/implications
The framework provides valuable insights tailored to Tanzanian sociocultural and economic nuances. However, its generalizability is limited due to its specificity to Tanzanian manufacturing SMEs.
Practical implications
The framework outlined in this research provides SME leaders, policymakers and technology implementers with valuable guidance to make informed decisions during the adoption process.
Originality/value
This study introduces a novel lens for understanding technology adoption. This study's focus on the Tanzanian context and its nuanced examination of contributing factors add to its originality and practical significance.
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Mariem Ben Abdallah and Slah Bahloul
The objective of this research is to determine the influence of solvency and liquidity on the profitability [return on assets (ROA)] of Tunisian banks from Q2-2020 to Q3-2022 by…
Abstract
Purpose
The objective of this research is to determine the influence of solvency and liquidity on the profitability [return on assets (ROA)] of Tunisian banks from Q2-2020 to Q3-2022 by considering asset quality as a moderating variable.
Design/methodology/approach
This study uses data on liquidity, solvency, ROA and asset quality for 12 banks. It also considers bank size, gross domestic product (GDP) growth and inflation as control variables. The methodology is based on panel data with generalized least squares (GLS) estimation to assess the moderate influence of the asset quality on solvency, liquidity and ROA. Also, the generalized method of moments (GMM) estimation is used as a robustness test.
Findings
The results of the GLS model estimation indicated a negatively significant moderating correlation between the liquidity and the solvency. The data from the GMM model indicate that the liquidity variable predicted by the liquidity has a positively significant influence on a bank's ROA as well as for the solvency variable, which is predicted by the capital capacity. Therefore, we conclude that these two variables had a positively significant impact on the ROA.
Research limitations/implications
The studies have many implications for banks and their management in addition to the industry regulators. The results of this study will enable political decision-makers to determine the banks' profits based on their liquidity and solvency.
Originality/value
This analysis provides financial explanations and recommendations for stakeholders in Tunisian banks. Furthermore, these banks must also be able to maintain their liquidity and solvency to ensure their profits in times of COVID-19.
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In countries where disclosing and reporting matters on sustainability are optional, what are the drivers promoting voluntarily disclosing information related to social…
Abstract
Purpose
In countries where disclosing and reporting matters on sustainability are optional, what are the drivers promoting voluntarily disclosing information related to social responsibility and environmental sustainability corporate environmental and social responsibility? Exploring drivers promoting the demand for voluntarily disclosing information related to social responsibility and environmental sustainability in Saudi Arabia, where regulatory and professional bodies have not mandated information on corporate environmental and social responsibility, motivates this study.
Design/methodology/approach
A total of 48 individuals voluntarily participated in the survey.
Findings
Findings reveal that creating a better social, ethical and mental image, building a public relations image for the company, improving stakeholder trust in the company, signaling to investors the company’s care for the earth to meet the ethical motivation of stakeholders, enhancing corporate social responsibility awareness and exhibiting surpasses the mere generation of profits, all derive such disclosure. Such disclosure also signifies the firm’s value as well as improves the overall firm’s economic performance.
Practical implications
Regulatory and professional bodies must issue and adopt reporting models for entities, principally private companies, whether publicly traded or not, of the content. Their reports should aim to inform users and stakeholders about fulfilling the social and environmental responsibilities of entities toward society and its members.
Social implications
Out of the drivers for the demand, perceptions of elders toward meeting ethical motivation of senior management significantly differ from that of younger.
Originality/value
Few studies have been attempted on drivers of the demand for reporting environmental sustainability and social responsibility in an environment where such reporting is not mandated. This study offers insight from Saudi Arabian corporate reports.
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