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Article
Publication date: 1 February 2005

Winston Chee Chiu Kwok and David Sharp

This study provides significant empirical data and analysis on the international standard‐setting process as conducted by the forerunner of the International Accounting…

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Abstract

Purpose

This study provides significant empirical data and analysis on the international standard‐setting process as conducted by the forerunner of the International Accounting Standards Board (IASB). It reveals the influences from four key stakeholder groups (users, preparers, accountants, and regulators) in order to ascertain why International Accounting Standards (IAS) turn out the way they do.

Design/methodology/approach

In‐depth interviews with board representatives and content analysis of documents were used to provide triangulating perspectives. The concept of power from the sociological and political science literature provides the theoretical lens. The standard setting projects on segment reporting and intangible assets were studied in detail.

Findings

The results show that the process can be best characterized as a mixed power system where no party is accorded the absolute power potential to dictate IAS. Nonetheless, while the user group is the target beneficiaries of IAS, the preparer group has significant influence, as inferred from the changes made to the IAS in line with the preparers' preferences.

Research limitations/implications

There is always the possibility of researchers missing out on “secret” exercise of power, given that the focus of this study was on “public” paths of influence. After this study, the IASB's meetings became open to public, providing new opportunities for future research.

Originality/value

This paper contributes to understanding accounting standard setting for international harmonization.

Details

Accounting, Auditing & Accountability Journal, vol. 18 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 16 October 2018

Chuanxin Feng, Zewen Li and Haosheng Wang

This paper aims to investigate the effects of epoxy resin on the rheological and mechanical properties and water absorption rate of wood flour/high-density polyethylene…

Abstract

Purpose

This paper aims to investigate the effects of epoxy resin on the rheological and mechanical properties and water absorption rate of wood flour/high-density polyethylene (HDPE) composites (wood-plastic composite [WPC]).

Design/methodology/approach

The reactive mixing of various epoxy resins with 60 Wt.% wood flour and HDPE was carried out in a twin-screw extruder with a special screw element arrangement. Polyethylene-grafted maleic anhydride (MAPE) was used as a coupling agent to improve the interfacial interaction between wood flour, epoxy resin and HDPE.

Findings

The tensile, flexural and impact properties of the composites increased initially and then decreased with the increasing content of epoxy resin. The complex viscosity decreased with increasing epoxy resin content, but a trend reversal was observed at 8 Wt.% epoxy resin. The epoxy resin-modified wood-HDPE composites chemically coupled by MAPE showed minimal water absorption.

Research limitations/implications

The cured epoxy resins impart high-aspect-ratio and plate-like polymeric fillers, affect the rheological behavior of the WPC and can also be oriented in a flow direction. Epoxy resin has good interaction with the cellulose structure of wood flour because of the polar functional groups within the cellulose.

Practical implications

This method provided a simple and practical solution to improve the performance of WPC.

Originality/value

The WPC modified by epoxy resin in this study had high performance in rheological and mechanical properties, and thus can be widely used for domestic, packaging and automotive applications.

Details

Pigment & Resin Technology, vol. 47 no. 5
Type: Research Article
ISSN: 0369-9420

Keywords

Article
Publication date: 15 April 2022

Gianluca Cafiso

The purpose of this paper is to gain insights useful to explain the loan puzzle: the unexpected increase of loans to firms in case of a monetary tightening. To this end…

Abstract

Purpose

The purpose of this paper is to gain insights useful to explain the loan puzzle: the unexpected increase of loans to firms in case of a monetary tightening. To this end, the authors develop the analysis using several loan categories distinguished by lender, scope and borrower. This approach helps to unveil significant differences on how those categories respond to the same shock and allow to evaluate possible alternative explanations for such differences.

Design/methodology/approach

The paper is empirical. The analysis is based on a large vector auto-regression, estimated using Bayesian techniques and has as object the US economy.

Findings

The findings support a supply-side explanation of the loan puzzle, i.e. banks reshuffle their portfolio in favor of short-term business loans after a monetary tightening. Moreover, the authors achieve the following results. First, the analysis shows that loans to small firms increase as well, but less than what observed with large firms: small firms stay between large firms and households. Second, considering advances and other loans allows to conclude that finance companies behave very much as banks. Third, some limited evidence suggests that not just industrial and commercial loans to firms might increase but also more long-term loans, such as mortgages.

Originality/value

The authors develop an analysis, based on state-of-the-art Bayesian techniques, that reveals the differential response of well-distinguished loan categories to several shocks; monetary and real shocks in the first place. After showing their heterogenous response, the authors discuss it in detail, with specific reference to supply and demand factors of credit intrinsic to the transmission mechanism. With respect to previous contributions, the authors consider a plurality of loan categories functional to understand the reason behind each specific response. This allows to conclude in favor of supply factors as an explanation of the unexpected increase of loans to corporate firms in case of a monetary shock.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 26 May 2022

Setyo Tri Wahyudi, Kartika Sari, Rihana Sofie Nabella and Dyah Dwi Zubaidah

Banks are intermediary institutions that play an important role in accelerating economic growth. Therefore, banks need to implement policies to improve the efficiency and…

Abstract

Banks are intermediary institutions that play an important role in accelerating economic growth. Therefore, banks need to implement policies to improve the efficiency and quality of digital finance, namely through the Extensible Business Reporting Language (XBRL), which developed amid Society 5.0. However, the application of XBRL does not completely rule out the possibility of information asymmetry. Therefore, this study aims to analyze the effect of Extensible Business Reporting Language (XBRL) on asymmetric information with corporate disclosure as a moderating variable (expected to reduce information asymmetry) and analyze the effect of XBRL and control variables (size, turnover, stock price) on information asymmetry. The sample used is conventional banks that have been listed on the IDX and are not delisted, from 2015, since the implementation of XBRL until 2019 using the panel data regression method. The results obtained are that information asymmetry decreases with the application of XBRL, where corporate disclosure is a moderating variable. For the results of the control variable, the larger the size, the less information asymmetry and turnover. As for the stock price, the higher the stock price, the higher the information asymmetry.

Details

Modeling Economic Growth in Contemporary Indonesia
Type: Book
ISBN: 978-1-80262-431-1

Keywords

Book part
Publication date: 24 October 2013

Zubeyir Kilinc, Hatice Gokce Karasoy and Eray Yucel

The composition of bank liabilities has captured a lot of attention especially after the global financial crisis of 2008–2009. It is argued that a compositional change in…

Abstract

The composition of bank liabilities has captured a lot of attention especially after the global financial crisis of 2008–2009. It is argued that a compositional change in non-core liabilities reflects the different stages of financial cycle. Banks usually fund their credits with core liabilities, which grow with households’ wealth, but when there is a faster growth in credits compared to deposits, the banks often resort to non-core liabilities to meet the excess demand for loans. This chapter analyses the relationship between non-core liabilities and credits in a small open economy, namely Turkey. It investigates the relationship under alternative settings and presents consistent evidence on a robust relationship between credits and non-core liabilities under all frameworks. The study also verifies that elevated demand for credit may induce some increase in non-core liabilities. Finally, the relationship between non-core liabilities and credit growth is also affirmed in the long run.

Book part
Publication date: 4 March 2015

Dragiša Otašević

Banking sectors in central, eastern and southeastern European (CESEE) countries have gone through a transformation from state-ownership and central planning to private…

Abstract

Banking sectors in central, eastern and southeastern European (CESEE) countries have gone through a transformation from state-ownership and central planning to private ownership and market-oriented decision making during the first decade of the 21st century. However, financial markets in these countries are still developing and the private sector is highly exposed to changes in exchange rates, especially in terms of the balance sheet channel. The fact that these banking sectors are predominantly owned by eurozone banks makes them vulnerable to macroeconomic tensions in the European union. This analysis investigates macroeconomic determinants of the realisation of credit risk in the loan portfolio of banks in Serbia using a panel data set covering the period from 2008Q3 to 2012Q2. Three different panel methods were applied separately for loans to households and loans to enterprises. The results indicate that a deteriorating business cycle and exchange rate depreciation led to the worsening of the quality of banks’ loan portfolio in Serbia in the period under review. In addition, statistical evidence indicates that the CPI inflation additionally affected the quality of loans. Furthermore, we find that household loan portfolios are also sensitive to changes in the short-run interest rates. As for policy implications, the importance of international cooperation between regulators is rising. A very important topic for such cooperation should be the risk-taking channel between countries with significant differences in interest rates and degree of riskiness. The interrelationship between the exchange rate and credit risk should be a major focus of both domestic macro- and micro-prudential policy – banks should be motivated to pay more attention to the possible negative spillovers when making credit decisions. Also, further development of the domestic primary and secondary T-bills market would help reducing unhedged FX risks.

Book part
Publication date: 25 May 2021

M. Ozan Yildirim

Introduction: Financial development has a direct impact on the housing market by facilitating access to credit. The increase in housing loans resulting from the relaxation…

Abstract

Introduction: Financial development has a direct impact on the housing market by facilitating access to credit. The increase in housing loans resulting from the relaxation of the credit constraint causes an increase in housing demand and house prices. Purpose: This study aims to examine the relationship between financial development and house prices in Turkey, using the variables: the domestic credit to the private sector and total housing and consumer credits. Methodology: To determine any long-run relationship between financial development and house prices, the autoregressive distributed lag methods are used, covering the selected variables such as real GDP, inflation, mortgage interest rate, and stock price from 2010Q1 to 2020Q2. Findings: The study’s findings show that both variables representing financial development have a statistically significant and substantial positive effect on house prices. Besides, the selected macroeconomic variables have the theoretically expected impact on house prices.

Details

Contemporary Issues in Social Science
Type: Book
ISBN: 978-1-80043-931-3

Keywords

Open Access
Article
Publication date: 25 January 2022

Kennedy Prince Modugu and Juan Dempere

The purpose of this paper is to examine monetary policies and bank lending in the emerging economies of Sub-Sahara Africa.

Abstract

Purpose

The purpose of this paper is to examine monetary policies and bank lending in the emerging economies of Sub-Sahara Africa.

Design/methodology/approach

The dynamic system-generalized method of moments (GMM) that overcomes issues of unobserved period and country-specific effects, as well as potential endogeneity of explanatory variables, is applied in the estimation exercise. The study uses the data for 80 banks across 20 Sub-Saharan African countries from 2010 to 2019.

Findings

The findings show that expansionary monetary policy such as an increase in money supply stimulates bank lending, while contractionary monetary policies like increase in the monetary policy rates by the central banks lead to credit contraction, albeit a weak effect due to possible underdevelopment of financial markets, institutional constraints, bank concentration and other rigidities in the system characteristic of developing countries that undermine the effectiveness of monetary policy transmission. Capital adequacy ratio and size of economic activities are other variables that significantly influence bank lending channels.

Originality/value

While greater empirical attention has been devoted to the nexus between monetary policies and macroeconomic variables in country-specific studies, the connection between monetary policies and bank lending at an extensive regional or cross-country level is still scanty. For Sub-Saharan Africa, there is a palpable lack of empirical evidence on this. This study, therefore, seeks to fill this gap in a region where the impact of monetary policies on credit intermediation is crucial to the economic diversification efforts of the governments of Sub-Sahara Africa.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

Keywords

Article
Publication date: 14 July 2021

Alexey Ponomarenko

This study aims to examine a potential case of interdependence in loan and deposit interest rate setting.

Abstract

Purpose

This study aims to examine a potential case of interdependence in loan and deposit interest rate setting.

Design/methodology/approach

The authors set up a theoretical microsimulation model with endogenous loan interest rate determination via a learning algorithm.

Findings

The authors show that in certain environments, it may be beneficial for large banks to incorporate information on retail funding costs into the lending rate setting decision.

Originality/value

The author’s model is based on the realistic money creation mechanism.

Details

Journal of Financial Economic Policy, vol. 14 no. 2
Type: Research Article
ISSN: 1757-6385

Keywords

Open Access
Article
Publication date: 26 July 2021

Md. Saiful Islam

This study aims to examine the influence of socioeconomic development on inflation in South Asia using the foreign exchange rate and money supply as control variables.

Abstract

Purpose

This study aims to examine the influence of socioeconomic development on inflation in South Asia using the foreign exchange rate and money supply as control variables.

Design/methodology/approach

The study uses annual panel data for five South Asian economies, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka over the period 1990–2018, applies cointegrating regression techniques, namely, the panel dynamic ordinary least square (OLS) and fully modified OLS estimators to examine the long-run relations and conducts the Toda-Yamamoto Granger causality test to detect the direction of causality among variables.

Findings

The cointegrating regression estimations have documented that the socioeconomic development proxied by the human development index (HDI) has no significant impact on inflation. Although economic development represented by gross domestic product (GDP) growth causes inflation, socioeconomic development represented by HDI has no impact on inflation and has demonstrated as a better macroeconomic indicator, and thus creates no inflationary pressure in the economy. The foreign exchange rate has a positive impact on inflation. The broad money supply has the usual positive effect on domestic inflation that endorses the monetarist view about prices. The Toda-Yamamoto Granger causality test has confirmed several unidirectional causalities: inflation causes HDI, money supply causes both inflation and HDI and the foreign exchange rate causes HDI.

Practical implications

The study has practical implications for policymakers in South Asia, to improve HDI, particularly GDP per capita, education and health-care facilities to realize continuous socioeconomic development, which will take care of inflation. Moreover, these counties may follow a conservative monetary policy to control inflationary pressure in their economies.

Originality/value

The study is original and claims to be the first to examine the impact of socioeconomic development on inflation. The findings have socioeconomic values regarding controlling inflation in South Asia.

Details

Applied Economic Analysis, vol. 30 no. 88
Type: Research Article
ISSN:

Keywords

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