Search results

1 – 10 of 624
Open Access
Article
Publication date: 29 March 2024

Runze Ling, Ailing Pan and Lei Xu

This study examines the impact of China’s mixed-ownership reform on the innovation of non-state-owned acquirers, with a particular focus on the impact on firms with high financing…

Abstract

Purpose

This study examines the impact of China’s mixed-ownership reform on the innovation of non-state-owned acquirers, with a particular focus on the impact on firms with high financing constraints, low-quality accounting information or less tangible assets.

Design/methodology/approach

We use a proprietary dataset of firms listed on the Shanghai and Shenzhen Stock Exchanges to investigate the impact of mixed ownership reform on non-state-owned enterprise (non-SOE) innovation. We employ regression analysis to examine the association between mixed ownership reform and firm innovation.

Findings

The study finds that non-state-owned firms can improve innovation by acquiring equity in state-owned enterprises (SOEs) under the reform. Eased financing constraints, lowered financing costs, better access to tax incentives or government subsidies, lowered agency costs, better accounting information quality and more credit loans are underlying the impact. Additionally, cross-ownership connections amongst non-SOE executives and government intervention strengthen the impact, whilst regional marketisation weakens it.

Originality/value

This study adds to the literature on the association between mixed ownership reform and firm innovation by focussing on the conditions under which this impact is stronger. It also sheds light on the policy implications for SOE reforms in emerging economies.

Details

China Accounting and Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 10 October 2022

Mohammad Nabil Almunawar and Muhammad Anshari

As a result of the COVID-19 pandemic, numerous businesses have migrated to an online delivery platform (ODP) to survive and reconnect with their customers. This study aims to…

Abstract

Purpose

As a result of the COVID-19 pandemic, numerous businesses have migrated to an online delivery platform (ODP) to survive and reconnect with their customers. This study aims to focus on how the public perceives ODP. It examined the acceptance of digital platforms for delivering daily necessities, especially food, in Brunei Darussalam during the COVID-19 pandemic.

Design/methodology/approach

The online survey collected 350 valid samples, and the online questions were distributed using a snowball sampling method, with the questionnaire’s softcopy prepared in Qualtrics and sent via email and social media as hyperlinks. In 2021, we sent out the questionnaire link via email, WhatsApp and Facebook to people and organizations for about six months.

Findings

According to the findings of the study, product quality is a critical factor that consumers consider while making online purchases of different products. The COVID-19 condition positively affects customer acceptance, performance, effort and product quality. This research indicates that service quality, online habits and trust do not influence customer acceptance of an ODP.

Research limitations/implications

The study contributes to the body of knowledge regarding factors influencing the acceptance of ODPs. The factors that influence people’s acceptance of ODPs, especially during the COVID-19 pandemic, are assessed as to whether the COVID-19 pandemic influences people’s acceptance and the identified factor that has the strongest influence on the acceptance of digital delivery platforms.

Practical implications

The study contributes to the growing body of knowledge about how customer behaviors triggered by the COVID-19 condition influence customer acceptance of ODP and how behavior influences customer acceptance of ODP.

Originality/value

This paper is useful to academics, practitioners and policymakers in public administration and policy management. The research provides some insights into massive adoption of ODPs that affects the disruption of conventional business practices.

Details

Journal of Science and Technology Policy Management, vol. 15 no. 2
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 29 February 2024

Francisca Da Gama and Kim Bui

The purpose of this paper is to propose a framework for evaluating the relationship between China and Peru, drawing on dependency theory, against the backdrop of China’s explicit…

Abstract

Purpose

The purpose of this paper is to propose a framework for evaluating the relationship between China and Peru, drawing on dependency theory, against the backdrop of China’s explicit policies towards foreign direct investment. It seeks to transcend traditional interpretations of this relationship in the literature that focuses on China as either hegemon or a South–South partner to Latin American countries to highlight a more nuanced relationship.

Design/methodology/approach

The paper adopts a case study approach, focusing on China in Peru. The authors examine three areas of traditional, strategic and emerging industries drawing from Chinese national policies, reviewing these against characteristics of dependency: control of production, heterogeneity of actors, transfer of knowledge and delinking.

Findings

The authors find that Chinese foreign direct investment (FDI) in Peru demonstrates mixed motives and collectively operates as an ambiguous player. Chinese firms appear to be willing to work with various actors, but this engagement does not translate into a decolonial development alternative in the absence of a Peruvian political will to delink and Chinese willingness to actively transfer control of production and knowledge.

Originality/value

This paper contributes to existing literature on China in Latin America by evaluating Chinese outward FDI in Peru against China’s strategic aims in terms of a re-evaluation of dependency theory.

Details

Critical Perspectives on International Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

Book part
Publication date: 4 April 2024

Emre Bulut and Başak Tanyeri-Günsür

The global financial crisis (GFC) of 2007–2008 had far-reaching consequences for the global economy, triggering widespread economic turmoil. We use the event-study method to…

Abstract

The global financial crisis (GFC) of 2007–2008 had far-reaching consequences for the global economy, triggering widespread economic turmoil. We use the event-study method to investigate whether investors priced the effect of significant events before the Lehman Brothers' bankruptcy in European and Asia-Pacific banks. Abnormal returns on the event days range from −4.32% to 5.03% in Europe and −5.13% to 6.57% in Asia-Pacific countries. When Lehman Brothers went bankrupt on September 15, 2008, abnormal returns averaged the lowest at −4.32% in Europe and −5.13% in Asia-Pacific countries. The significant abnormal returns show that Lehman Brothers' collapse was a turning point, and investors paid attention to the precrisis events as warning signs of the oncoming crisis.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-83753-865-2

Keywords

Open Access
Article
Publication date: 12 January 2024

Sarit Biswas, Sharad Nath Bhattacharya, Justin Y. Jin, Mousumi Bhattacharya and Pradip H. Sadarangani

This paper empirically investigates whether trade openness (TO) in Brazil, Russia, India, China and South Africa (BRICS) countries affects how banks might employ loan loss…

Abstract

Purpose

This paper empirically investigates whether trade openness (TO) in Brazil, Russia, India, China and South Africa (BRICS) countries affects how banks might employ loan loss provisions (LLPs) to smooth out their earnings and how adopting the International Financial Reporting Standards (IFRS) can mitigate it.

Design/methodology/approach

The analysis includes 78 commercial banks from five BRICS nations and spans 2014 through 2020. To test these hypotheses, the authors utilized a fixed-effect and two-step system panel generalized methods of moments (GMM) estimator.

Findings

TO positively affects income smoothing (earnings management) across BRICS commercial banks. The effect is clearer in banks that make financial reports under the IFRS. Path analysis reveals that the effect of TO is driven by nonperforming loans (NPLs). Additionally, the IFRS restricts earnings management in the BRICS banking sector when a better institutional environment is present. The authors found that accounting rules (IFRS) and enforcement (better institutional settings) interact to enhance earnings’ quality.

Practical implications

The relationship between TO and bank earnings management practices is important for understanding the complex interplay between trade and finance and ensuring financial stability, investor confidence and regulatory compliance. This study recommends better regulations and governance mechanisms for financial reports in emerging nations like BRICS. Additionally, macro-prudential regulators and banking supervisors should work closely to ensure transparent TO decisions with improved discipline, institutional quality and regulatory support to enhance bank stability.

Originality/value

The study finds evidence of bank income smoothing in the BRICS and introduces TO as a determinant. It also identifies the evolving role of IFRS in the presence of higher institutional quality and TO, thereby expanding the financial reporting literature.

Details

China Accounting and Finance Review, vol. 26 no. 1
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 12 January 2024

Peter Njagi Kirimi

This study aims to examine the effect of ownership structure on financial performance of commercial banks in Kenya.

Abstract

Purpose

This study aims to examine the effect of ownership structure on financial performance of commercial banks in Kenya.

Design/methodology/approach

The data were collected from audited financial statements of 39 commercial banks in Kenya for the period 2009–2020.

Findings

Regression results found evidence of ownership structure explaining commercial banks’ financial performance. The results found a negative association between state ownership and net interest margin, a negative association between management ownership and net interest margin and a negative association between institutional ownership and return on assets.

Practical implications

Based on the findings, commercial bank management should therefore devise ownership structure policies that are geared toward boosting their financial performance both in the short run and the long run. Second, this study recommends a minority shareholding of the state in commercial banks to deter political interference, protect investors’ wealth from erosion and allow the majority shareholders to adopt a strong corporate governance mechanism for higher financial performance. Banks with a high percentage of state ownership should consider partial privatization to improve corporate governance practices. Third, banks should adopt a managerial ownership policy limiting the proportion of equity stock held by executives to limit their powers in strategic decision-making. Fourth, this study proposes a percentage limit on the equity stock of an institutional investor to eliminate bureaucracy in strategic decision-making and protect investors’ wealth.

Originality/value

The study finding is meant to inform regulation and operation policies in the banking sector and contribute to the literature on ownership structure, especially in the banking sector.

Details

Measuring Business Excellence, vol. 28 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

Book part
Publication date: 26 March 2024

Vikas Sharma, Munish Gupta and Kshitiz Jangir

Introduction: Commercial banks play a vital role in the global economy, facilitating economic growth and providing essential financial services. As key intermediaries between…

Abstract

Introduction: Commercial banks play a vital role in the global economy, facilitating economic growth and providing essential financial services. As key intermediaries between savers and borrowers, these institutions operate in a dynamic and complex environment characterised by various risk factors that can significantly impact their profitability and overall stability. Understanding the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability is crucial for effective risk management strategies and the development of appropriate regulatory frameworks.

Purpose: Commercial banks play a critical role in the global economy by facilitating economic growth and providing financial services. This study examines the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability in commercial banking.

Methodology: The sample consists of licenced scheduled commercial banks on the Bombay Stock Exchange (BSE) from 2015 to 2022. Using the Smart PLS-SEM 3.0 path analysis technique, the study evaluates the combined influence of these risk factors on profitability and provides evidence-based recommendations for risk management strategies.

Findings: The findings can assist banks in enhancing their risk management practices, and regulators in developing appropriate regulatory frameworks. By understanding the key risk factors and their impact on profitability, banks and regulators can mitigate risks, enhance transparency, and promote stability within the banking sector.

Significance/value: The value of this study lies in its focus on the interconnectedness of risk factors, profitability, and the potential implications for decision-making, risk management strategies, regulatory frameworks, and the overall stability of the commercial banking sector.

Details

The Framework for Resilient Industry: A Holistic Approach for Developing Economies
Type: Book
ISBN: 978-1-83753-735-8

Keywords

Article
Publication date: 31 January 2024

Rizky Yudaruddin

This study aims to assess the effectiveness of the banking market discipline in relation to the development of Financial Technology (FinTech) startups.

Abstract

Purpose

This study aims to assess the effectiveness of the banking market discipline in relation to the development of Financial Technology (FinTech) startups.

Design/methodology/approach

Using panel data collected from 144 banks in Indonesia from 2004 to 2018, this study’s regression models were estimated using fixed effects with robust standard errors.

Findings

This study finds that FinTech startups disturb bank deposits. Meanwhile, market discipline exists in Indonesian banks, as indicated by depositors’ behavior with higher credit and liquidity risks. However, market discipline does not exist for bank insolvency risk, which is indicated by a significant and positive relationship with the dependent variable. Therefore, the higher the number of FinTech startups, the more effective the market discipline. Empirical findings also revealed that the joint impact between FinTech startups and bank risk is also important in explaining the difference in the effectiveness of banking market discipline.

Practical implications

This study has policy implications for banks in mitigating risk associated with market discipline and instability of financial intermediation.

Originality/value

This study offers a significant contribution to the empirical literature because it specifically explores the effectiveness of the banking market discipline by focusing on the joint impact of FinTech startups and bank risk on deposits. Furthermore, this study contributes to providing empirical evidence that links between FinTech startups and bank risk affect depositor behavior at government-owned, private, large and small, as well as nonmobile and mobile adoption banks.

Details

Journal of Asia Business Studies, vol. 18 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 8 March 2024

Rasha Mohammad Nouraldeen

The focus on corporate governance has increased after the financial collapses of several banks worldwide, such as Silicon Valley Bank and First Republic Bank in the USA, and the…

Abstract

Purpose

The focus on corporate governance has increased after the financial collapses of several banks worldwide, such as Silicon Valley Bank and First Republic Bank in the USA, and the failure of the Lebanese banking sector. This study examines the impact of audit committee (AC) characteristics on financial performance and investigates the moderating effect of ownership concentration (OC) on the associations between AC characteristics and profitability.

Design/methodology/approach

The current research is carried out based on 211 Lebanese banks’ annual reports, focusing on the period from 2012 to 2021. The ordinal least squares (OLS) and the hierarchical multiple regression analysis were adopted to test the study’s hypotheses.

Findings

The outcomes reveal that AC size, AC frequency of meetings, and banks’ size (control variable) positively affect financial performance; however, OC does not moderate the associations between the AC characteristics and banks’ profitability.

Originality/value

According to the researcher’s knowledge, no prior study has investigated the moderating effect of OC on these associations. Moreover, the current study contributes to the literature that documented mixed and inconsistent results regarding the direct associations between AC characteristics and financial performance.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 15 August 2022

Habib Hussain Khan

The purpose of this study is to explore the possible impact of banking market structure on the idiosyncratic risk of financially dependent firms in China.

Abstract

Purpose

The purpose of this study is to explore the possible impact of banking market structure on the idiosyncratic risk of financially dependent firms in China.

Design/methodology/approach

The study analyzes firm-level data for China from 1999 to 2018 using a two-step dynamic panel system generalized method of moments (GMM).

Findings

The findings imply that bank competition lowers corporate risk, particularly among firms that are highly dependent on external funding for their financing needs. The findings are consistent with alternative indicators of competition, corporate risk, and financial dependence. The analysis of the transmission mechanism – the channel through which competition affects corporate risk – reveals that bank competition reduces corporate risk by curtailing financing constraints faced by firms.

Research limitations/implications

The competition-enhancing policy should consider the optimum level of bank competition for financial and economic stability. Further research is necessary to define the “desirable” or “optimum” level of bank competition.

Practical implications

In China, where the banking sector is still highly concentrated, the findings of this study call for policies aimed at encouraging healthy competition among banks. Nevertheless, such a policy must also consider the extent of bank competition that is optimal for the economy, particularly for financial and economic stability.

Originality/value

The paper provides the first evidence of the possible linkage between bank competition and corporate risk in China.

Details

International Journal of Emerging Markets, vol. 19 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

1 – 10 of 624