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1 – 3 of 3Mohammad Delwar Hussain and Iftekhar Ahmed
This study aims to examine the impact of governance on the double-bottom-line performance of microfinance institutions (MFIs) in Bangladesh.
Abstract
Purpose
This study aims to examine the impact of governance on the double-bottom-line performance of microfinance institutions (MFIs) in Bangladesh.
Design/methodology/approach
This study relies on three dimensions of corporate governance (CG) practices, that is, functions of the board of directors (BoD), top-level management activities and external governance mechanisms. This study uses panel data econometrics, particularly pooled OLS, fixed effects and two-stage system generalized method of moments to deal with potential endogeneity concerns. The panel data set covers 1,200 MFI year observations from Bangladesh for the period between 2005 and 2019.
Findings
The findings show that the presence of stakeholders on boards plays a critical role in MFIs. The dual goals of MFIs are influenced by board size, board independence and CEO duality. Internal management activities, risk perceptions and external governance also impact MFIs’ performance. Women on board have an inverse association with outreach. The activities of female managers have a significant impact on depth of outreach.
Research limitations/implications
Like many others, this study also admits the data constraint issues in microfinance research. CG data for MFI are mostly unavailable in the public domain; therefore, this study must rely on third-party data sources. This study only includes MFIs that has data for all variables of interest.
Practical implications
Governance attributes in hybrid organizations are constituted differently. To warrant multistakeholder engagement, there is a need to develop a distinctive governance manual for hybrid organizations like MFIs.
Social implications
This study proposes adopting a Social Director on the BoD to ensure the scope of outreach depth, given the importance of social goals in MFIs.
Originality/value
This study contributes to the ongoing debate on microfinance governance, addresses the issue based on different theoretical aspects using a country-specific data set and uses dynamic panel models to deal with potential endogeneity concerns.
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Keywords
Ather Azim Khan, Muhammad Ramzan, Shafaqat Mehmood and Wing-Keung Wong
This paper assesses the environment of legitimacy by determining the role of institutional quality and policy uncertainty on the performance of five major South Asian stock…
Abstract
Purpose
This paper assesses the environment of legitimacy by determining the role of institutional quality and policy uncertainty on the performance of five major South Asian stock markets (India, Pakistan, Bangladesh, Sri Lanka, and Nepal) using 21 years data from 2000 to 2020. The focus of this study is to approach the issue of the environment of legitimacy that leads to sustained market returns.
Design/methodology/approach
Panel cointegration tests of Kao and Pedroni are applied, and the Dynamic Panel Vector Autoregressive (PVAR) model is used to determine the estimates.
Findings
ADF P-Values of both Kao and Pedroni tests show that the panels are cointegrated; the statistical significance of the results of the Kao and Pedroni panel cointegration test confirms cointegration among the variables. After determining the most appropriate lag, the analysis is done using PVAR. The results indicate that institutional quality, policy uncertainty, and GDP positively affect stock market return. Meanwhile, government actions and inflation negatively affect stock market returns. On the other hand, stock market return positively affects institutional quality, government action, policy uncertainty, and GDP. While stock market return negatively affects inflation.
Research limitations/implications
The sample is taken only from a limited number of South Asian countries, and the period is also limited to 21 years.
Practical implications
Based on our research findings, we have identified several policy implications recommended to enhance and sustain the performance of stock markets.
Originality/value
This paper uses a unique analytical tool, which gives a better insight into the problem. The value of this work lies in its findings, which also have practical implications and theoretical significance.
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This paper aims to examine the probable effect of the General Data Protection Regulation of the European Union on the transfer of financial intelligence to a third country without…
Abstract
Purpose
This paper aims to examine the probable effect of the General Data Protection Regulation of the European Union on the transfer of financial intelligence to a third country without an adequacy decision.
Design/methodology/approach
This is an analytical study of the financial intelligence exchange mechanisms between the Bangladesh Financial Intelligence Unit (BFIU) and its foreign counterparts. The research analyses the key challenges this national agency faces in using the Egmont Group membership to import financial intelligence from jurisdictions with a superior data protection regime.
Findings
Membership in the Egmont Group of Financial Intelligence Units does not guarantee unrestricted international intelligence exchange. Existing data protection regulations in Bangladesh are inadequate. This may forbid the transfer of the financial intelligence linked to European Union (EU) data subjects to Bangladesh.
Research limitations/implications
This paper does not cover a thorough discussion on any specific alternative tools for data transfer from the EU to a third country except for “appropriate safeguards” options.
Practical implications
The results of this study will help understand the existing legal and institutional limitations that may prevent intelligence exchange between the BFIU and its EU counterparts.
Originality/value
The study helps ascertain the legislative reform necessary in Bangladesh, a third country, to facilitate the transfer of financial intelligence from the EU.
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