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1 – 10 of 439Mushtaq Hussain Khan, Ahmad Fraz, Arshad Hassan and Syed Zohaib Hassan Kazmi
This study aims to examine whether the soundness of Islamic banks is differently affected by corruption compared to conventional counterparts. Moreover, the Shari’ah supervisory…
Abstract
Purpose
This study aims to examine whether the soundness of Islamic banks is differently affected by corruption compared to conventional counterparts. Moreover, the Shari’ah supervisory board (SSB), as a cornerstone of Islamic banking and representing a multi-layer corporate governance model, is expected to moderate the influence of corruption on soundness for Islamic banks.
Design/methodology/approach
This study considers a unique sample of 1,528 observations on 71 Islamic banks and 120 conventional banks operating in 11 emerging and developing Muslim countries over the 2010–2017 period. This study uses generalized least squares regression model and the coefficients are estimated by using random-effects estimator. In addition, to overcome a potential endogeneity concern for corruption and bank stability relationship, this study uses Two-Stage Least Squares regression instrumental variable estimator.
Findings
The authors find consistent evidence that higher levels of corruption adversely impact the soundness for conventional banks, in favor of the sand the wheel hypothesis in the corruption–development nexus. However, as expected, this study finds a less negative impact of corruption on soundness of Islamic banks. Moreover, SSB moderates the relationship between corruption and soundness of Islamic banks. The findings are robust to a battery of alternative checks.
Research limitations/implications
Findings of the paper regarding the detrimental impact of corruption on bank soundness justify the urgency of the anti-corruption campaigns in these countries, particularly for conventional banks. Moreover, the findings provide support for the positive contribution of SSBs to overcome the adverse effect of corruption on soundness of Islamic banks and thereby underscoring the need for enforcement and regulatory mechanism for SSBs to be more effective.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine the moderating impact of Shari’ah supervision on the relationship between corruption and soundness of Islamic banks.
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Zeshan Ghafoor, Irfan Ahmed and Arshad Hassan
This study aims to examine the impact of audit committee (AC) characteristics and enterprise risk management (ERM) on stock price synchronicity (SYNCH).
Abstract
Purpose
This study aims to examine the impact of audit committee (AC) characteristics and enterprise risk management (ERM) on stock price synchronicity (SYNCH).
Design/methodology/approach
Based on a sample of 437 US-based firms over the period 2010 to 2017, the current study uses fixed-effect and ordinary least square to test the formulated hypotheses. Majority of the sample firms are based on the S&P 500 index. This study also performs a battery of robustness checks.
Findings
The authors find that overall female members and female financial experts and female chairpersons of the AC are negatively associated with SYNCH. Similarly, the study endorses the monitoring role of financial experts and the diligence of the AC (threshold of four annual meetings), as both are negatively associated with SYNCH. However, the authors find that the AC chaired by the financial expert is also negative but insignificantly associated with SYNCH. Finally, the study finds that ERM is also negatively linked with SYNCH.
Practical implications
The findings of the current study offer some important policy implications. For instance, the shareholders can benefit from the monitoring abilities of women and financial experts by increasing their ratio in the AC. The study also offers some useful insights regarding the financial experts and chair of the AC and ERM.
Originality/value
The current study examines the association of AC characteristics with SYNCH, while the prior literature only assesses the impact of various board characteristics (such as size, independence and gender diversity). The study also contributes to the literature of ERM by providing new insights on the influence of the presence of ERM framework/program on SYNCH.
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Hamzah Abdulrahman Salman, Amer M. Hussin, Arshad Hamed Hassan, Haleama Al Sabbah and Khattab Al-Khafaji
Several types of vaccines were manufactured by different companies to control and stop the spread of COVID-19. This study aimed to identify the postvaccination side effects of the…
Abstract
Purpose
Several types of vaccines were manufactured by different companies to control and stop the spread of COVID-19. This study aimed to identify the postvaccination side effects of the three different vaccines (Pfizer, AstraZeneca and Sinopharm) among the Iraqi population in Baghdad, Iraq.
Design/methodology/approach
A prospective cross-sectional study was conducted in Baghdad, Iraq from May 2021 to March 2022. An online-based questionnaire was used to collect the data through social media, i.e. WhatsApp, Messenger and Google Classroom. A total of 737 vaccinated participants using a snowball sampling methodology were used in this study.
Findings
Among the study population, 328 (44.50%) were males and 409 (55.50%) were females. The highest age group that participated was 18–30 years (79.10%) followed by 31–40 years (12.10%), 41–50 years (4.20%), 51–60 years (2.40%) and 60 = years (2.20%). However, 58.8% of the participants received Pfizer-BioNTech, 23.7% received the AstraZeneca-Oxford vaccine and 17.5% received Sinopharm. Out of the total participants, 56.60% showed postvaccination side-effects such as fever, headache, fatigue and dizziness, while 33% showed no side-effects and 10.40% were not sure. Pfizer-BioNTech and AstraZeneca-Oxford vaccines were the most vaccines prevalent of side-effects.
Originality/value
The majority of the side reactions associated with the AstraZeneca and Pfizer vaccines were manageable and self-limiting, including fever, fatigue, headache, joint pain and dizziness, compared to the Sinopharm vaccines, which reported lower postside effects.
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The purpose of this paper is to extend the literature on Islamic banking by examining their ethical dimension using transparency, placement of assets, guarantees and participation…
Abstract
Purpose
The purpose of this paper is to extend the literature on Islamic banking by examining their ethical dimension using transparency, placement of assets, guarantees and participation from Radical Affinity Index.
Design/methodology/approach
To this end, a sample of 20 Islamic banks from 13 countries (Bahrain, Saudi Arabia, Malaysia, Pakistan, Kuwait, Tanzania, Great Britain, Oman, Iraq, Egypt, Bangladesh and Qatar) was used.
Findings
The results are robust to ethical effects. The evidence suggests that among Islamic banks, at least some of them could improve their ethical requirements of the Sharia; they obtained lower scores than ethical banks in terms of RAI variables (transparency, placement of assets, guarantees and participation).
Research limitations/implications
It is used a random sample rather than population with the limitations that entails. The variables in the index are based on ethical perspective; then, the index is applied in Islamic banking but with the ethical view limitation.
Practical implications
The Islamic banks have the option to increase their transparency including further information regarding the beneficiaries of the benevolent funds; moreover, it would offer a clearer view about their ethical and social commitment towards society.
Originality/value
Additionally, this paper broadens the scope of the literature by analysing the determinants of Islamic banking around ethical dimensions of financial entities.
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Zuee Javaira and Arshad Hassan
– The purpose of this paper is to examine the investment behavior of Pakistani stock market participants, specifically with respect to their tendency to exhibit herd behavior.
Abstract
Purpose
The purpose of this paper is to examine the investment behavior of Pakistani stock market participants, specifically with respect to their tendency to exhibit herd behavior.
Design/methodology/approach
The study employed two different methodologies suggested by Christie and Huang (1995) and Chang et al. (2000) to test herd formation. Results are based on daily and monthly stock of KSE-100 index for the period 2002-2007.
Findings
Results based on daily and monthly stock data from Karachi Stock Exchange indicate the non-existence of herd behavior for the period 2002-2007 and find no support for the rational asset pricing model and investor behavior found inefficient. This study denied proved evidence of herding due to market return asymmetry, high and low trading volume states and asymmetric market volatility. Macroeconomic fundamentals have insignificant role in decision-making process of investor therefore has no impact on herding behavior. However, during liquidity crisis of March 2005, Pakistani stock market exhibit herding behavior due to asymmetry of information among investors, presence of speculator and questionable badla financing-local leverage financing mechanism.
Research limitations/implications
In future, this study can be improved by employing stock returns portfolios based on market capitalization or sector wise portfolio returns from KSE-100. Furthermore by identifying those factors that cause market to be overall inefficient and define the pattern of the investor trading activities.
Practical implications
For an accurate valuation of assets investors should incorporate the herding factor.
Social implications
As the assets are mispriced, investor behavior is uncertain and markets are inefficient, foreign investors should invest with caution, as large numbers of securities are needed to achieve the same level of diversification than in an otherwise normal market.
Originality/value
In Karachi Stock Exchange, it is first attempt to uncover the herding behavior. This paper contribute to the body of knowledge by investigating the herding behavior in the emerging markets since most of the previous study concentrate more on the developed markets. Furthermore, the study also analyzed the herding behavior in different economic condition and includes economic variables and examines asymmetric effect. This study presents an integrated model to test herding behavior in Pakistani equity market. Consideration of said behavioral effect in the decision-making process of investor will make the decisions more rational and optimal.
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Nguyen Trong Hoai, Luong Vinh Quoc Duy and Damien Cassells
Internationalization is viewed as an important strategy in the context of a country in transition from central planning to market orientation. Efforts to internationalize…
Abstract
Purpose
Internationalization is viewed as an important strategy in the context of a country in transition from central planning to market orientation. Efforts to internationalize universities are being carried out at both national and institutional levels. However, to the best of the authors’ knowledge, there has been no study to investigate how individual institutions approach internationalization and what they gain from that process. This paper aims to investigate the enhancement of teachers’ and students’ knowledge and skills using internationalization in Vietnam universities as a strategy.
Design/methodology/approach
Semi-structured interviews with leaders from 12 universities were conducted to investigate their perceptions, strategies and perceived outcomes of the internationalization process of their universities. Data analysis involved coding the transcripts of interviews into themes.
Findings
Results show that current approaches to internationalized activities in Vietnamese universities are ad hoc in nature, while resources and language incompetence of staff and students are limited. In line with other previous studies, limited resources and lack of English competence among educators and students were found to be the key obstacles and challenges for internationalized activities. The authors also note an issue that apparently has not been raised elsewhere in the relevant research literature, which is the challenge for the sustainability of knowledge production via research and publications.
Originality/value
Findings from this study not only contribute to Vietnamese universities but also to other developing institutions which do not have strong international exchange programs or have not experienced strong benefits from international exchange programs.
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Sutan Emir Hidayat, Muhammad Rizky Prima Sakti and Raqiya Ali Abdullah Al-Balushi
The purpose of this study is to critically evaluate how conventional and Islamic banks trade off risk, efficiency and financial performance in their business models, to…
Abstract
Purpose
The purpose of this study is to critically evaluate how conventional and Islamic banks trade off risk, efficiency and financial performance in their business models, to investigate how patterns of risk and efficiency vary between conventional and Islamic banks and to critically evaluate how the profitability of conventional and Islamic banks varies following the financial crisis.
Design/methodology/approach
This study uses univariate and multivariate statistical techniques by investigating 12 Islamic banks and 34 conventional banks operating in the Gulf Cooperation Council (GCC) region has been studied over the period 2011–2018.
Findings
The results suggest that Islamic and conventional banks differ not in the levels of efficiency, risk and profitability, but rather in how risk and efficiency influence banks’ financial performance. Islamic banks are found to be less influenced by the adverse effects of credit risk, which is consistent with the risk-sharing nature of Islamic financing. However, the results only hold for return on assets (ROA) and return on equity (ROE) while the net interest margin is observed to be negatively influenced by credit risk. Lower cost-income efficiency is also found to boost ROA and ROE of Islamic banks which could be attributed to a larger share of non-interest revenues due to Sharīʿah-compliance.
Research limitations/implications
From a theoretical point of view, this study helps to understand the risk, efficiency and financial performance of Islamic banks in comparison with conventional banks.
Practical implications
The results of this study can serve bank managers, regulators and shareholders. Policymakers should encourage a more risk-sharing structure of Islamic financing as it brings less adverse effects of credit risk and increases income sustainability for Islamic banks. The present study may help bank managers to improve the financial performance of their firms by controlling risk and efficiency. The study results also have implications for shareholders and depositors of Islamic and conventional banks as they should have a predetermined position about the level of credit risk and efficiency in each banking system.
Originality/value
The foremost contribution is that this is one of the few studies to compare risk, efficiency and financial performance of Islamic and conventional banks in the GCC region. By using the latest data, this paper hopes that the findings will be more relevant than previous studies to the current situation of the banking industry in the region.
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Yasaman Yazdanpanah, Mohamad Taghi Toghraee, Aidin Salamzadeh, Jonathan M. Scott and Ramo Palalić
This paper explores how entrepreneurial culture (EC) and organizational learning (OL) determine the entrepreneurial orientation (EO) of new technology-based firms (NTBFs). These…
Abstract
Purpose
This paper explores how entrepreneurial culture (EC) and organizational learning (OL) determine the entrepreneurial orientation (EO) of new technology-based firms (NTBFs). These NTBFs are located in Isfahan Science and Technology Town (ISTT), Iran. These entities face substantial challenges in a highly-sanctioned economy, which makes adopting, acquiring or transferring new technologies daunting.
Design/methodology/approach
This paper analyzes a sample of 200 NTBFs. The participants were trained chief executive officers and observed by applying pre-test and post-test designs. As a final step, empirical data were collected using questionnaires and analyzed accordingly. The structural equation modeling (SEM) with the partial least squares (PLS) approach was used by the SmartPLS2 software.
Findings
OL was found to mediate the relationship between EC and EO in the studied NTBFs. Additionally, the indirect effect of EC on EO and the direct impact of OL on EO were significant (=1.96). Therefore, this study focuses on selected NTBFs within Iran's particular and distinctive context.
Research limitations/implications
This study has several limitations. These were the time consuming nature, the lack of cooperation by managers and the COVID-19 pandemic-related challenges. Nonetheless, the findings offer several important implications for practitioners, scholars and policymakers.
Originality/value
The paper sought to explore how EC and OL determine EO in Iranian NTBFs. It, thus, investigates the case of a highly-sanctioned context during the coronavirus pandemic, which imposed several basic and technological limitations on their practices.
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The purpose of this study is to look at the effect of financial leverage on the performance of Saudi listed companies. It particularly proposes to examine the heterogeneity of…
Abstract
Purpose
The purpose of this study is to look at the effect of financial leverage on the performance of Saudi listed companies. It particularly proposes to examine the heterogeneity of this relationship depending on firm profitability and firm size.
Design/methodology/approach
The paper uses a sample of 120 nonfinancial companies listed on the Tadawul stock exchange during the period 2017–2020. Data is obtained from the companies’ financial reports. This study uses the system GMM and the quantile regression. The first methodology examines the effect of leverage decisions on firm performance, whereas the second one tests the heterogeneity of this relationship.
Findings
GMM results demonstrate the adverse effect of leverage on firm performance in terms of return on assets, return on equities and Tobin’s Q. Besides, quantile regression results show that this relationship is heterogeneous. Particularly, leverage seems to have a greater adverse effect on the performance of high-profitable firms than low-profitable firms. Moreover, leverage has a negative effect in larger firms, whereas the influence becomes negative in smaller ones.
Originality/value
This study is unique in that it approaches the capital structure issue from a different perspective, where the leverage decision is distinctly considered at various levels of firm profitability and firm size. In addition, the majority of the existing studies is carried out in developed countries. However, the results might not apply to emerging countries given the specificity of their institutional structure. In this regard, Saudi Arabia has a distinctive business climate characterized by the absence of corporate tax and an illiquid bond market.
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Siti Khomsatun, Hilda Rossieta, Fitriany Fitriany and Mustafa Edwin Nasution
The unique characteristic of Islamic bank leads in governance and disclosure. Using stakeholder, signaling, and market discipline theory, governance and adequate disclosure may…
Abstract
The unique characteristic of Islamic bank leads in governance and disclosure. Using stakeholder, signaling, and market discipline theory, governance and adequate disclosure may increase bank soundness. This study aims to investigate the relationship of sharia disclosure and Sharia Supervisory Board in influencing Islamic bank soundness in the different regulatory framework of the country. Using purposive sampling, the research covered 84 Islamic banks in 16 countries during the period 2013–2015 with lag data of Islamic bank soundness. The result shows sharia disclosure influences on Islamic bank soundness for management efficiency, capital adequacy ratio, asset quality, and liquidity. The results also show that sharia disclosure mediates the indirect effect of SSB on Islamic bank soundness. The regulatory framework (sharia accounting standard and SSB regulation) shows moderating effect of regulation framework proved on the association of sharia disclosure with management efficiency, capital, and liquidity. The effect is indirectly depending on the regulatory framework for proxy management efficiency, capital, and liquidity. The implication of the research suggests that sharia disclosure could increase the market discipline mechanism of Islamic bank stream. The Islamic bank can increase the transparency using sharia disclosure as a branding for increasing public trust, even though in the deficient Islamic bank regulation countries.
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