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Article
Publication date: 14 November 2016

Walaa Wahid ElKelish and Jon Tucker

The purpose of this paper is to investigate whether bank capital strength and external auditing requirements influenced international stock market stability during the 2007/2008…

1201

Abstract

Purpose

The purpose of this paper is to investigate whether bank capital strength and external auditing requirements influenced international stock market stability during the 2007/2008 global financial crisis.

Design/methodology/approach

Bank mandatory regulation data are obtained from the World Bank database, while stock market stability is gauged for 385 listed banks across 43 countries by means of generalised least squares regression models.

Findings

The authors find that mandatory capital strength requirements and the existence of mandatory audit increase stock market stability across countries. Further, more profitable banks increase stock market stability. The results are robust to both country institutional settings and economic freedom characteristics.

Originality/value

This paper provides evidence of the impact of bank regulations on stock market stability during the global financial crisis, thereby providing a useful insight for stakeholders to enhance financial regulation and policy.

Details

Journal of Financial Regulation and Compliance, vol. 24 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

Open Access
Article
Publication date: 5 April 2022

Farhana Afroj

This paper investigates the financial strength of banks in Bangladesh and factors affecting the financial strength over the years 2010–2015 on 35 banks.

4310

Abstract

Purpose

This paper investigates the financial strength of banks in Bangladesh and factors affecting the financial strength over the years 2010–2015 on 35 banks.

Design/methodology/approach

Additive value function with CAMEL rating (capital stength, asset quality, managerial efficiency, earning ability, liquidity) has been employed to calculate banks’ financial strength index (FSI). In the second stage, panel regression has been exercised to find out the determinants of banks’ financial strength.

Findings

Empirical finding exhibits that the Islamic banks of Bangladesh are financially stronger and outperform conventional and Islamic window banks with higher liquidity. In the ownership category, private banks have more financial strength with higher capital strength, asset quality, managerial efficiency and earning ability than public banks. Bank size, loan recovery, salary and banking sector development positively affect whereas the loan-asset negatively affect the bank’s financial strength in Bangladesh.

Research limitations/implications

This study has its limitations despite its importance. CAMELS is a more improved form than using CAMEL. But because of the data deficiency on “S” which represents sensitivity, it would not be possible to use CAMELS framework. Further researchers could incorporate this.

Practical implications

Government and banks should allow Islamic banks to enter the market on easy terms because of their outstanding performance in the existing market. In addition, banks should provide loans with consideration so that they cannot create credit risk. In addition, they should calculate composite financial strength annually to understand which components they need to work on.

Originality/value

This study extends the extant result on the composite FSI. It is hard to examine the financial strength of banks using only ratio value, which misleads most of the time. The study offers evidence on how the FSI provides more rigorous results and what are the factors contribute most to the financial strength of banks.

Details

Asian Journal of Economics and Banking, vol. 6 no. 3
Type: Research Article
ISSN: 2615-9821

Keywords

Book part
Publication date: 13 September 2017

Shinya Uekusa

This comparative study qualitatively explores how linguistic minority immigrants and refugees experienced the 2010–2011 Canterbury and Tohoku disasters, including their coping…

Abstract

This comparative study qualitatively explores how linguistic minority immigrants and refugees experienced the 2010–2011 Canterbury and Tohoku disasters, including their coping mechanisms and their perceived vulnerabilities and resilience. The data used for this qualitative analysis was primarily drawn from 28 in-depth interviews with linguistic minority immigrants and refugees and their supporting organization staff conducted in 2015–2016. Additional material was drawn from two publicly available data sets. Immigrants and refugees are typically thought of as being more vulnerable in disasters. However, findings drawn from this research demonstrate the nonlinearity, complexity, and contextuality of social vulnerabilities in disasters, suggesting that they are not necessarily powerless help-seekers in some cases. Using Bourdieu’s capital theory, this study demonstrates how immigrants and refugees were active social agents in these disasters. Consequently, we need to reconceptualize the social vulnerability approach. Some study participants had experiences of going through wars and everyday disasters, which made them more resilient. This is conceptualized here as earned strength, which can be a significant resource in disasters for the socially vulnerable. This chapter hopes to answer some critical questions regarding the social vulnerability approach: how do we incorporate the structure–agency concept, how do we theoretically deal with the contextuality/nonlinearity of social vulnerability in disasters, and how do we conceptualize a research study that can seek more practical and generalizable findings, instead of event-driven and disaster-specific findings?

Details

Recovering from Catastrophic Disaster in Asia
Type: Book
ISBN: 978-1-78635-296-5

Keywords

Article
Publication date: 9 March 2018

Ismail Adelopo, Robert Lloydking and Venancio Tauringana

The purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before…

6368

Abstract

Purpose

The purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before (1999-2006), during (2007-2009), and after (2010-2013) the financial crisis.

Design/methodology/approach

Using the Economic Community of West African States’ bank panel data from 1999 to 2013, the paper used fixed effect models. The panel model includes bank-specific determinants (size, cost management, and liquidity), industry level, and macroeconomic variables.

Findings

Panel data analyses results show that there is a significant relationship between bank-specific determinants (size, cost management, and liquidity) and bank profitability (ROA) before, during, and after the financial crisis. However, the relationships between other bank-specific (capital strength, credit risk, and market power), macroeconomic (gross domestic product and inflation) determinants are sensitive to both periods of analysis (before, during, and after financial crisis) and bank profitability measure used (ROA or NIM).

Originality/value

Overall, these results suggest that the financial crisis did not affect the relationships between some bank-specific determinants and bank profitability.

Details

International Journal of Managerial Finance, vol. 14 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 10 January 2020

Rahma Oussi and Wafi Chtourou

This study aims to investigate the theoretical limitations of the social network theory applied on employee creativity.

Abstract

Purpose

This study aims to investigate the theoretical limitations of the social network theory applied on employee creativity.

Design/methodology/approach

By combining the social network theory and componential model of creativity, this study studies the possible impact of social capital through its three dimensions (structural, relational and cognitive dimension) on individual creativity, to explore then the moderating effect of cognitive style as individual characteristic on the structural dimension of social capital such weak ties and employee creativity.

Findings

The results show that, on a sample of 95 employees belonging to four companies in the IT sector, predictions based on the social network theory are only weakly verified. Indeed, the relational and cognitive dimensions of social capital do not have a significant impact on individual creativity.

Originality/value

Based on Kim et al.’s (2016) call for future research, this study extends the assumptions of the social network theory announcing that social capital through its structural dimension may have an identical impact on individual creativity in all circumstances.

Details

Competitiveness Review: An International Business Journal , vol. 30 no. 1
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 25 July 2018

Ayodeji Emmanuel Oke

The ability of construction contractors to engage in construction bond agreement with guarantors depends on capital, experience, capacity and continuity. Using these criteria, the…

Abstract

Purpose

The ability of construction contractors to engage in construction bond agreement with guarantors depends on capital, experience, capacity and continuity. Using these criteria, the purpose of this paper is to provide insights into the bonding capacity of Nigerian contractors.

Design/methodology/approach

Factors required for bonding were examined based on a set of questions addressed to managers of contracting firms and personnel involved in issuing bonds and guarantees in commercial banks and insurance companies. The scorecard approach was employed to determine the bonding capability of the contractors.

Findings

Contractors’ financial strength and past performance on previous projects are the two important factors considered by guarantors in granting bond to contractors. However, the condition surrounding the bond, the legal capacity of the guarantor to issue bond and the identity of the guarantor are mostly considered by contractors in approaching a potential guarantor. Using the scorecard approach, about one-third of contractors have the necessary requirements to engage in construction bond agreement with guarantors. This ability of contractors is affected by years of experience of the firm but not by their location nor years of experience of their manager.

Practical implications

It is necessary for contracting firms to increase their capital base through merging, borrowing, etc., and also engage experienced professionals and workers in the execution of construction projects, as this will eventually improve their bonding ability.

Social implications

The study is limited to construction contractors registered with Ondo and Lagos State Governments and guarantors that are banks and insurance companies in Nigeria.

Originality/value

The paper specified various areas of concerns for Nigerian contracting firms in their bid to enhance their bonding ability. This will help them in overcoming various challenges and bottlenecks that may arise in securing bonds and guarantees from guarantors.

Details

Engineering, Construction and Architectural Management, vol. 25 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 November 2017

Chau-kiu Cheung and Elaine Suk-ching Liu

Encouraging college students to volunteer is a supposed but uncharted way to contribute to their career commitment. Clarifying the ways of the contribution is therefore necessary…

Abstract

Purpose

Encouraging college students to volunteer is a supposed but uncharted way to contribute to their career commitment. Clarifying the ways of the contribution is therefore necessary. From the social capital perspective, volunteering and network density among friends represent social capital to reinforce each other. Thus, the purpose of this paper is to study the enhancement of the contribution by the density.

Design/methodology/approach

The examination employs a two-wave panel survey of 410 university students to estimate the effects of volunteering and friend network density at Wave 1 on career commitment at Wave 2. Essentially, the examination adjusted for biases due to sample attrition and self-selection into volunteering.

Findings

Volunteering at Wave 1 showed a significant contribution to career commitment at Wave 2. Moreover, the contribution significantly increased with friend network density at Wave 1.

Research limitations/implications

Findings from this panel survey of university students in Hong Kong require future research for substantiation. For instance, such research can apply an experimental design to volunteering to guarantee the internal validity of the contribution of volunteering.

Practical implications

Social capital theory is applicable to the promotion of career commitment. Specifically, optimizing the strength of social capital through the combination of volunteering and friendship is promising.

Originality/value

Empirical support for the application of social capital theory to career development is evident. Particularly, the joint contribution of volunteering and friendship is demonstrable.

Details

Career Development International, vol. 22 no. 7
Type: Research Article
ISSN: 1362-0436

Keywords

Article
Publication date: 4 July 2016

Elisa Menicucci and Guido Paolucci

The purpose of this paper is to investigate the relationship between bank-specific characteristics and profitability in European banking sector to find the role of internal…

12028

Abstract

Purpose

The purpose of this paper is to investigate the relationship between bank-specific characteristics and profitability in European banking sector to find the role of internal factors in achieving high profitability.

Design/methodology/approach

A regression analysis is built on an unbalanced panel data set comprising 175 observations of 35 top European banks over the period 2009-2013. To this end, the empirical data are collected from Bankscope and a comprehensive set of internal characteristics is examined.

Findings

All the determinant variables included in the model have statistically significant impacts on European banks’ profitability. However, the effects are not uniform across profitability measures. Regression findings reveal that size and capital ratio are significant company-level determinants of bank profitability in Europe, while higher loan loss provisions result in lower profitability levels. Findings also suggest that banks with higher deposits and loans ratio tend to be more profitable but the effects on profitability are statistically insignificant in some cases.

Practical implications

This study has considerable policy implications, as the performance of the European banking sector depends on its efficiency, profitability and competitiveness. In view of these findings, some suggestions may be functional for bank regulatory authorities to intensify and sustain robustness and stability of the banking sector.

Originality/value

The results provide interesting insights into the characteristics and practices of profitable banks in Europe. Few econometric studies have empirically explored the determinants of bank profitability in Europe so far, even though similar studies have been conducted in several developed countries. Therefore, this paper tries to close an important gap in the existing literature improving the understanding of bank profitability in Europe.

Details

Journal of Financial Reporting and Accounting, vol. 14 no. 1
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 26 February 2024

Grace Low and Qi Li

This study aims to examine the effect of corporate social responsibility (CSR) on banks’ capital, value and risk by investigating its impact on capital inflows and asset quality…

Abstract

Purpose

This study aims to examine the effect of corporate social responsibility (CSR) on banks’ capital, value and risk by investigating its impact on capital inflows and asset quality. The authors aim to investigate the value-protective characteristics of socially responsible performance.

Design/methodology/approach

This study uses a two-stage least squares approach with instrumental variables, with bank and year fixed effects to address concerns regarding endogeneity, specifically reverse causality and unobservable factors.

Findings

The results confirm a positive association of CSR with capital adequacy, including higher quality Tier 1 Capital. The authors find strong evidence that banks with higher CSR scores are associated with greater bank value and lower risk. The extended analyses find that the improvement in capital is from annual growth in capital and lower risky assets.

Originality/value

The research advances the field by providing new empirical evidence of a positive association between CSR and capital, including high-quality Tier 1 Capital. This study complements the prior research by simultaneously examining the dynamic links between CSR and capital, bank risk and bank value. The findings are consistent with the view that there is a dynamic link in which CSR affects the operations of banks.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 3 May 2016

Chonnatcha Kungwansupaphan and Jibon Kumar Sharma Leihaothabam

The purpose of this paper is to investigate the roles of four specific capital factors, namely, human, social, institutional and financial capitals, in rural women…

1522

Abstract

Purpose

The purpose of this paper is to investigate the roles of four specific capital factors, namely, human, social, institutional and financial capitals, in rural women entrepreneurship. The focus was on the handloom sector in Manipur, India.

Design/methodology/approach

This paper uses qualitative research methodology with a multiple case study approach. Data were collected using in-depth interviews to study seven cases of rural women entrepreneurs.

Findings

The study highlights that human, social, institutional and financial capitals play significant roles in encouraging rural women to engage in entrepreneurial activities and influence strategic decisions. Each capital factor being interrelated, achieving the integration among them will considerably enhance entrepreneurial success.

Research limitations/implications

The main limitation is the narrow scope, emphasizing on only four capital factors. There are implications for further work on other types of capital. The study being sector specific, limits generalization. It contributes insights into the need for multi-sector examinations in the literature.

Practical implications

Rural women entrepreneurship needs are in line with understanding the roles of capital factors and their interrelations. The role of capital factors varies between prior and no prior entrepreneurial experiences.

Originality/value

This study provides information on the role of capital factors on rural women entrepreneurship and contributes to better understanding of how each capital factor is accumulated and utilized in rural women entrepreneurship development using the perspective of handloom sector in Manipur, India.

Details

Gender in Management: An International Journal, vol. 31 no. 3
Type: Research Article
ISSN: 1754-2413

Keywords

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