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Article
Publication date: 17 August 2015

Nejib Hachicha and Amine Ben Amar

– The purpose of this paper is to investigate empirically the impact of the Islamic Bank Financing on Malaysia’s economic growth over the period 2000Q1-2011Q4.

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Abstract

Purpose

The purpose of this paper is to investigate empirically the impact of the Islamic Bank Financing on Malaysia’s economic growth over the period 2000Q1-2011Q4.

Design/methodology/approach

A neoclassical production function augmented by some indicators of Islamic bank finance has been the theoretical framework for this paper’s empirical investigation. The unit root tests show that all the variables are integrated of order 1. The test of Johansen and Juselius (1990) has shown the existence of a single cointegrating relationship between the gross domestic product (GDP), the investment, the labor force and the indicator of Islamic bank finance. Hence, an error correction model has been constructed to estimate the economic growth elasticity with respect to the different Islamic bank finance indicators.

Findings

The estimated elasticities show that, in the long run, the GDP in Malaysia is not sensitive to the Islamic financing. The estimation of an error correction model shows that the elasticity of the Malaysian output with respect to the different Islamic financing indicators in the short run turn around 0.35. Thus, the effect of the different Islamic finance indicators on the economic growth in the long run is less important than their effect in the short run. This economic result can be explained by the structure of the Islamic bank financing that marginalizes the profit-and-loss sharing (PLS)-based instruments. This turns out to be consistent with the economic reality in Malaysia, as the Islamic banks engage much more in non-participatory activities whose impact is, generally, of short term.

Social implications

To improve the efficiency of the Malaysian Islamic banks as financial inter-mediaries that facilitate the capital accumulation and the economic growth, the paper suggests to strengthen the weight of the PLS-based instruments in the loan portfolios of the Malaysian Islamic banks. This may reduce inequalities and improve economic opportunities for people who have a high potential to contribute to the capital accumulation and the creation of the value-added.

Originality/value

The contribution of this paper is two-fold. On the one hand, it provides a further contribution to the rare empirical literature relative to the impact of the Islamic finance on growth by determining the elasticity of economic growth with respect to Islamic bank financing in Malaysia. On the other hand, and to the best of the authors’ knowledge, this paper remains the first to correctly resort to the error correction model in determining this elasticity.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 8 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 14 June 2022

Achraf Haddad

The purpose of this research is to compare the board quality's (BQ) impacts on the financial performance (FP) of conventional and Islamic banks (IBs) after the Subprime financial…

Abstract

Purpose

The purpose of this research is to compare the board quality's (BQ) impacts on the financial performance (FP) of conventional and Islamic banks (IBs) after the Subprime financial crisis. The main reason is to help financial stakeholders choose the best performing and most appropriate bank type with its engagement based on the BQ index.

Design/methodology/approach

Based on the existing gap in previous researches and by using the GLS method (Generalized Least Squares method), the author compared the BQ's impacts on the FP of conventional and IBs. Settings of the FP and BQ were collected from 30 countries located on 4 continents. Two equal samples were tested; each of them is composed of 112 banks. The author concentrated only on the banks that have published regularly the banks' annual reports over the period 2010–2018.

Findings

Cylindrical panel results revealed that in conventional banks (CBs), the BQ has negatively affected banks' FP, while in IBs the BQ's impacts on the banks’' FP is ambiguous. Nevertheless, the positive impacts are more significant on the IBs' FP than the negative impacts on the IBs' FP.

Practical implications

The main practical contribution is the identification and distinction between the impacts of board determinants' quality on the shareholders' profits in the case of conventional and IBs. Hence, conventional or IBs which have a bad BQ will generate less FP and will be classified as a lender of bankruptcy danger for the bank customer. Besides, whatever the bank type, in a financial stable period, good BQ positively influences FP and provides a good impression to stakeholders. Otherwise, FP indicates that the banks suffer from the weaknesses of the board quality determinants.

Originality/value

Returning to the finance and banking governance literature, the author's article provides the first conditional and demonstrative analysis that detailed a logical comparative process to analyze the correlation between the board determinants' quality and the financial performance of conventional and IBs. However, previous research has always discussed the main role of the board as an internal governance mechanism on the FP separately in each bank type.

Article
Publication date: 1 October 1932

Charles A. Banks

THE development, in 1929, of a large volume of dredgeable gold‐bearing gravel in the Mandated Territory of New Guinea brought the Directors of Placer Development, Ltd., the…

Abstract

THE development, in 1929, of a large volume of dredgeable gold‐bearing gravel in the Mandated Territory of New Guinea brought the Directors of Placer Development, Ltd., the exploration company which had proved the area and wished to equip it, face to face with an unusually difficult transport problem. The solution of this was so satisfactorily overcome by the use of aeroplanes, that the writer felt that a short paper on the subject would be of interest to members, and, at the same time, helpful to such engineers as may later have somewhat similar problems to surmount.

Details

Aircraft Engineering and Aerospace Technology, vol. 4 no. 10
Type: Research Article
ISSN: 0002-2667

Book part
Publication date: 16 December 2016

Chang Lu and Trish Reay

We investigated how an institutional settlement concerning Native Indian gaming (the operation of gambling establishments such as casinos or bingo halls by Native Indian tribes…

Abstract

We investigated how an institutional settlement concerning Native Indian gaming (the operation of gambling establishments such as casinos or bingo halls by Native Indian tribes) was preserved over time in spite of three significant challenges. Building on previous literature on settlements and institutional logics, we see settlements as institutional arrangements that manage power dynamics and competing institutional logics. Based on our analyses of the settlement and three challenges in the Native gaming field, we suggest that even seemingly volatile institutional settlements can be maintained when powerful actors balance each other’s ability to modify the settlement and different actors invoke alternative institutional logic(s). We also find that these processes can be facilitated by the embeddedness and formality of the settlement. We contribute to the settlement literature by showing how settlements can be maintained when actors draw on equally strong sources of power and different logics to counter the actions of other actors. Furthermore, we shed light on “how institutions matter” by demonstrating how institutional settlements can facilitate field stability.

Details

How Institutions Matter!
Type: Book
ISBN: 978-1-78635-431-0

Keywords

Article
Publication date: 5 May 2015

Diego Vega and Christine Roussat

In recent years, logistics service providers (LSPs) have become important players in the humanitarian field, providing support for NGOs and governments when they respond to major…

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Abstract

Purpose

In recent years, logistics service providers (LSPs) have become important players in the humanitarian field, providing support for NGOs and governments when they respond to major disasters. However, the academic literature on humanitarian logistics has not really explored the roles that LSPs play in relief supply chains. The purpose of this paper is to investigate the role of LSPs in humanitarian relief.

Design/methodology/approach

The research uses a two-stage exploratory approach: first, it systematically reviews the humanitarian logistics literature to see the extent to which LSPs are taken into account. Then it analyses the web sites of leading LSPs to examine how they communicate about their role in humanitarian relief.

Findings

This research produces some surprising findings. While the academic literature seems to neglect the roles of LSPs in humanitarian logistics, some major third-party firms highlight their roles in relief networks. A number of research propositions are presented describing emerging roles for LSPs in relief supply chains.

Research limitations/implications

This paper focuses on academic humanitarian logistics literature; a review of practitioner articles and the LSP literature might also be relevant. The web site analysis is based on corporate communication which may contain bias. Further research should add to this work with NGO/government perspectives and produce primary data in order to demonstrate the external validity of the research propositions.

Practical implications

The research identifies different roles LSPs could play in humanitarian supply chains, suggesting opportunities for new business lines.

Originality/value

The main contributions of this paper are to explore the roles LSPs could play in humanitarian logistics and to bring a new perspective to humanitarian logistics research.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 4
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 5 June 2017

Charles Blankson, Seth Ketron and Joseph Darmoe

The purpose of this paper is to investigate employment of positioning strategies in the retail bank sector of Sub-Saharan Africa, specifically using Ghana as the study context. In…

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Abstract

Purpose

The purpose of this paper is to investigate employment of positioning strategies in the retail bank sector of Sub-Saharan Africa, specifically using Ghana as the study context. In addition, it explores the applicability of western-based typology of positioning strategies in the Sub-Saharan African environment.

Design/methodology/approach

Six retail banks – three national and three foreign – are studied, each through an in-depth case study method: covert and participant observation techniques; and face-to-face interviews of chief executive officers, marketing managers, and bank branch managers provided data for the study.

Findings

The results show that the “service” positioning strategy is the most popular strategy employed by retail banks. “Value for money,” “attractiveness,” “brand name,” and “country of origin” positioning strategies are also dominant. “Top of the range” and “selectivity” strategies are minimally pursued by the sample of banks studied. The results reveal that both foreign and national retail banks employ multiple positioning strategies in the face of competition. However, foreign retail banks consistently employ a; large number of strategies relative to national retail banks. This paper supports the applicability of a western-derived set of positioning strategies in the Sub-Saharan African marketplace.

Research limitations/implications

This study closes a gap in the understanding of positioning, as well as filling the empirical gap in the application of positioning. In addition, it helps resolve a contextual gap of knowledge in Sub-Saharan Africa’s retail banking sector.

Originality/value

This study responds to Porter (1996), Clancy and Trout (2002), and Knox (2004) for continued empirical research in positioning in service industries and specifically in Sub-Saharan African economies (Coffie, 2014, 2016; Coffie and Owusu-Frimpong, 2014). Moreover, this research adds value to the banking and marketing literatures through a qualitative case study method, which is an important yet overlooked research method (Yin, 2009).

Details

International Journal of Bank Marketing, vol. 35 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 8 October 2021

Yong Tan, Vincent Charles, Doha Belimam and Shabbir Dastgir

This study investigates the interrelationships between efficiency, competition and risk in the Chinese banking industry.

Abstract

Purpose

This study investigates the interrelationships between efficiency, competition and risk in the Chinese banking industry.

Design/methodology/approach

Parametric stochastic frontier analysis is used to estimate bank efficiency; the Lerner index is used as the competition indicator; accounting ratios and a translog function are used to measure different types of risk and finally, the three-stage least square estimator is used to investigate the interrelationships.

Findings

The results of this study show that the impact of competition on different types of risk is significant and positive, while there is a significant and positive impact of credit risk, liquidity risk and capital risk on bank competition. In addition, the findings demonstrate that the interrelationships between efficiency and competition are significant and negative. The authors do not find any robust interrelationships between different types of risk and different types of efficiency; the authors find that diversification and higher levels of profitability reduce bank credit risk. The results suggest that a higher developed banking sector reduces the level of bank competition in China.

Originality/value

This is the first piece of research that comprehensively investigates the interrelationships between different types of risk, competition and different efficiencies in China.

Details

Asian Review of Accounting, vol. 29 no. 4
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 1 June 2002

George K. Chacko

Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange…

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Abstract

Develops an original 12‐step management of technology protocol and applies it to 51 applications which range from Du Pont’s failure in Nylon to the Single Online Trade Exchange for Auto Parts procurement by GM, Ford, Daimler‐Chrysler and Renault‐Nissan. Provides many case studies with regards to the adoption of technology and describes seven chief technology officer characteristics. Discusses common errors when companies invest in technology and considers the probabilities of success. Provides 175 questions and answers to reinforce the concepts introduced. States that this substantial journal is aimed primarily at the present and potential chief technology officer to assist their survival and success in national and international markets.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 14 no. 2/3
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 25 October 2018

David Adeabah, Agyapomaa Gyeke-Dako and Charles Andoh

This study aims to analyze the efficiency of banks under board gender diversity and to examine the determinants of bank efficiency.

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Abstract

Purpose

This study aims to analyze the efficiency of banks under board gender diversity and to examine the determinants of bank efficiency.

Design/methodology/approach

Data for analysis were sourced from annual reports of 21 banks for the period from 2009 to 2017. A two-step framework was used: first, an examination of efficiency scores with and without board gender diversity computed using data envelopment analysis; and second, a regression of board gender diversity as a determinant of bank efficiency using panel estimation on an unbalanced panel data.

Findings

The results reveal that gender diversity promotes bank efficiency up to a maximum of two female directors on a nine-member board of directors, suggesting a threshold effect on bank efficiency. Board size improves bank efficiency. Board independence is negatively related to bank efficiency. Also, powerful chief executive officers are detrimental for bank efficiency. Finally, the authors find that ownership structure, bank size, bank age and loan-to-deposit ratio are important factors affecting bank efficiency.

Research limitations/implications

All bank-year observations with no female representation on the board were excluded. As such, this paper is limited to 21 banks. Future research should look at a larger data set and account for dynamic endogeneity.

Practical implications

The paper contributes to bank governance structure, namely, gender composition of boards, and provides an insight for regulators and shareholders to estimate the role of men and women on boards.

Originality/value

The novel feature of the efficiency model used is that it incorporates board gender diversity as an additional input variable, in line with the preposition of proponent of resource dependency theory.

Details

Corporate Governance: The International Journal of Business in Society, vol. 19 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 1 January 1993

Charles W. Hultman

The ability of foreign banks to market their services byestablishing a physical presence in US markets to a great extent dependsupon US legislative enactments, regulatory actions…

Abstract

The ability of foreign banks to market their services by establishing a physical presence in US markets to a great extent depends upon US legislative enactments, regulatory actions, and judicial interpretations, all of which have been subject to significant change since the late 1980s. Examines recent changes in the US regulatory structure that will have an impact on the operations and marketing strategy of agencies, branches and subsidiaries of foreign banks in US markets. The major focus is on PL 102‐242 which was signed into law in December 1991, regulatory changes designed to implement G‐10 risk‐based capital adequacy guidelines, and other regulatory efforts to impose prudential bank management policies on the US financial services sector. In general, the thrust of the legislative‐regulatory changes will be to increase the sensitivity of banks to the risk associated with their activities. This, in turn, will require a modified marketing strategy to accommodate changes in profit opportunities and in bank customers.

Details

International Journal of Bank Marketing, vol. 11 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

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