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1 – 10 of over 4000George Paltayian, Andreas Georgiou and Katerina Gotzamani
This paper presents a decision-making framework for e-banking operations, based on the Quality Function Deployment and the Analytic Hierarchy Process. The main research question…
Abstract
Purpose
This paper presents a decision-making framework for e-banking operations, based on the Quality Function Deployment and the Analytic Hierarchy Process. The main research question is the development of a framework and its potential contributions in supporting decision makers in implementing quality strategies that will encourage the usage of e-banking services (EBS).
Design/methodology/approach
The introduced framework comprises four distinct stages which include criteria determination, field surveys and EFA, QFD application including AHP and finally sensitivity analysis investigating the dynamic nature of the environment. AHP determines the intensity of the relationship between e-banking quality criteria and customer banking activities. A novel House of Quality (HoQ) is proposed, based on a market mix founded on key e-banking activities, and sensitivity analysis is used to investigate alternative scenarios. To illustrate the steps of applying this framework, the authors use a convenience sample from the Greek e-banking sector.
Findings
Through the illustrated example is supported that the proposed approach can reveal valuable information when contemplating strategies to improve e-banking usage and expand its acceptance. In addition, sensitivity analysis leads to purposeful insights regarding the effects of market segmentation and/or target settings on the ranking of e-banking quality/selection criteria provided by the HoQ. In the specific numerical example, the most critical quality factors were “Security and Reliability”, “Convenience”, “Design”, “Pricing” and “Skills,” although different rankings night well appear in different contexts or geographical regions. Moreover, sensitivity analysis showed that these results depend on the specific market mix and targets. As mentioned above, the implementation of the framework in different geographical regions or e-service sectors might certainly reveal different critical factors.
Research limitations/implications
Discussed in the paper body.
Practical implications
Discussed in the paper body.
Originality/value
The paper presents a well-defined four stage framework for improving EBS penetration. It utilizes a structured qualitative and quantitative approach and outlines and ranks e-banking quality factors stemming from the market mix and allows assessment of alternative scenarios through sensitivity analysis.
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Tim Gocher, Wen Li Chan, Jayalakshmy Ramachandran and Angelina Seow Voon Yee
This study aims to explore the effects of responsible international investment in a least developed country (LDC) on ethics and corruption in the local industry. While investment…
Abstract
Purpose
This study aims to explore the effects of responsible international investment in a least developed country (LDC) on ethics and corruption in the local industry. While investment growth in least developed countries (LDCs) is essential to meet the United Nations Sustainable Development Goals, international investment in LDCs poses challenges, including corruption. The authors explore perspectives from relevant stakeholders on the influence, if any, on an LDC’s banking sector, of investment in the LDC by a multinational bank with an environmental, social and governance focus – using a case study of Standard Chartered Bank (SCB) in Nepal.
Design/methodology/approach
The authors conducted thematic analysis on: focus groups with current and former SCB Nepal management; semi-structured interviews with Nepal banking regulator representatives; senior staff from SCB global divisions; and management of other commercial banks in Nepal.
Findings
Knowledge transfer, organisational enablers and constructive international competition contributed to the dissemination of best practices within the Nepal banking sector, supporting the notion of beneficial spill-over effects of multinationals on LDC host countries.
Practical implications
Practical insights will aid LDC governments, international businesses, investment funds and donor organisations seeking to invest in/assist LDCs with economic development.
Originality/value
To the best of the authors’ knowledge, this may be the first case study on ethics and anti-corruption practices of a multinational bank in a LDC. Through a practice-driven focus, the authors provide “on-the-ground” insights to better understand the complex nature of corruption.
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Faraj Salman Alfawareh, Mahmoud Al-Kofahi, Edie Erman Che Johari and Ooi Chai-Aun
This paper aims to examine the connection between digital payments, ownership structure, and bank performance in Jordan, as well as investigate the moderating role of the…
Abstract
Purpose
This paper aims to examine the connection between digital payments, ownership structure, and bank performance in Jordan, as well as investigate the moderating role of the independent director in the said relationship.
Design/methodology/approach
The study uses data from 12 Amman stock exchange-listed commercial banks, covering the period from 2010 to 2023. This paper employs econometric analysis of panel data, including ordinary least squares (OLS) regression as the primary approach, as well as the generalised method of moments, the two-stage least square (2SLS), and the dynamic model to deal with causality and endogeneity issues in the proposed equations. This ensures that the results are valid.
Findings
The results indicate that digital payments and ownership structure have a significant positive connection with bank performance. Additionally, the independent director variable appears to play a substantial and positive moderating role in the link between ownership structure (e.g. institutional ownership) and bank performance. These results strengthen and support the claims of agency theory and the information systems success model.
Practical implications
Overall, this research helps stakeholders, bankers, managers, investors, customers, and policymakers, identify the influence of digital payment and ownership structure on bank performance in developing economies such as that of Jordan.
Originality/value
This investigation offers a unique understanding by illuminating how digital payment and ownership structure affect bank performance in a developing country such as Jordan. Additionally, it opens avenues for future research to delve into this literature domain in North African and Middle Eastern nations, with a particular focus on Jordan. This investigation is among the initial explorations in Jordan that aim to elucidate these relationships. On the theoretical level, it adds to the agency theory and IS model. It provides new insights into the dynamics of industry banking in developing nations (i.e. Jordan).
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Fatima Al Maeeni, Nejla Ould Daoud Ellili and Haitham Nobanee
This study aims to investigate the extent and trend of corporate social responsibility (CSR) disclosure by UAE listed banks and the impact of corporate governance mechanisms on…
Abstract
Purpose
This study aims to investigate the extent and trend of corporate social responsibility (CSR) disclosure by UAE listed banks and the impact of corporate governance mechanisms on this disclosure.
Design/methodology/approach
Content analysis of banks’ annual reports from 2009 to 2019 was applied to investigate the CSR disclosure level by constructing a disclosure index. Panel data regressions were applied to analyze the impact of corporate governance mechanisms on CSR disclosure.
Findings
UAE banks show an improving trend in the CSR disclosures. In addition, the board of directors and ownership structure are significantly and positively associated with the CSR disclosures. The results vary across the banking systems.
Research limitations/implications
This study considers the extent of the CSR disclosure in UAE banks’ annual reports, and future research should consider more industries and communication channels.
Practical implications
This study sheds light on the extent of the CSR disclosure of UAE listed banks and assists UAE policymakers in implementing appropriate corporate governance mechanisms.
Social implications
The findings provide banks with a better understanding of the benefits of strengthening corporate governance to improve their CSR disclosure.
Originality/value
This study contributes to the literature by constructing a more comprehensive disclosure index and examining the impact of corporate governance mechanisms on CSR disclosure by considering both the conventional and Islamic banking systems.
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Md. Abdur Rouf, Md. Alamgir Hossan and A.N.M. Jahangir Kabir
This study aims to provide a thorough knowledge of the context and degree of corporate social responsibility (CSR) reporting in the annual reports of Islamic and mainstream banks…
Abstract
Purpose
This study aims to provide a thorough knowledge of the context and degree of corporate social responsibility (CSR) reporting in the annual reports of Islamic and mainstream banks in Bangladesh and to investigate whether ownership and the level of CSR reporting are connected.
Design/methodology/approach
This study uses the content analysis method to examine 150 annual reports from the 30 listed banking companies as its sample. The data are fitted to an ordinary least square regression model to determine the impact of independent factors on the overall CSR reporting score.
Findings
The study’s findings show that, on average, Islamic and conventional banks (ICBs) in Bangladesh disclose CSR data at rates of 46.27% and 43.44%, respectively, ranging from 14.15% to 76.32%. Furthermore, according to the study, ICBs’ public share ownership and CSR reporting showed a significant relationship. Conversely, institutional share ownership and foreign share ownership have been found to have no significant relationship with CSR reporting in conventional banks, but institutional share ownership has been found to have a significant relationship with the CSR reporting in Islamic banks.
Social implications
The research is expected to obtain the most accurate situation of Bangladeshi ICBs’ CSR reporting. To formulate regulations in this regard, governmental and other regulatory authorities can also obtain comprehensive information on CSR reporting procedures.
Originality/value
The paper contributes to the CSR works, as it presents empirical evidence of the effects of ownership distribution on the CSR reporting of ICBs in developing countries such as Bangladesh.
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Ayman Issa, Ahmad Sahyouni and Miroslav Mateev
This empirical research investigates the impact of board nationality diversity on the efficiency of banks. Additionally, our analysis examines the interacting impact of women's…
Abstract
Purpose
This empirical research investigates the impact of board nationality diversity on the efficiency of banks. Additionally, our analysis examines the interacting impact of women's representation on bank boards in the correlation between nationality diversity on board and bank efficiency.
Design/methodology/approach
This research utilizes a dataset comprising banks operating in the MENA countries over an eight-year period. We apply diverse statistical methodologies, with Ordinary Least Squares (OLS) being the primary econometric analysis, alongside several robustness tests.
Findings
The research results offer important insights into the importance of board nationality diversity, as well as its interaction with the inclusion of women on boards. The findings indicate that having foreign directors on bank boards enhances efficiency. Furthermore, they suggest that increased women representation on boards improves the positive correlation between presence of foreign directors in boardrooms and efficiency of banks, thereby mitigating agency problems and enhancing governance practices.
Practical implications
These results carry substantial implications for legislators across the MENA countries. Advocating for diversity policies within banks to encourage the inclusion of foreign directors on their boards could lead to efficiency enhancements. Furthermore, policymakers might explore the implementation of quotas or directives to bolster gender heterogeneity within board appointments, ultimately fostering improved bank efficiency and bolstering competitiveness within the region.
Originality/value
This study breaks new ground by investigating how board nationality diversity affects efficiency of banking sector in the MENA countries. It stands out for examining the moderating role of women representation on boards, offering novel insights into how these factors interact.
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Bhavya Srivastava, Shveta Singh and Sonali Jain
The present study assesses the commercial bank profit efficiency and its relationship to banking sector competition in a rapidly growing emerging economy, India from 2009 to 2019…
Abstract
Purpose
The present study assesses the commercial bank profit efficiency and its relationship to banking sector competition in a rapidly growing emerging economy, India from 2009 to 2019 using stochastic frontier analysis (SFA).
Design/methodology/approach
Lerner indices, conventional and efficiency-adjusted, quantify competition. Two SFA models are employed to calculate alternative profit efficiency (inefficiency) scores: the two-step time-decay approach proposed by Battese and Coelli (1992) and the recently developed single-step pairwise difference estimator (PDE) by Belotti and Ilardi (2018). In the first step of the BC92 framework, profit inefficiency is calculated, and in the second step, Tobit and Fractional Regression Model (FRM) are utilized to evaluate profit inefficiency correlates. PDE concurrently solves the frontier and inefficiency equations using the maximum likelihood process.
Findings
The results suggest that foreign banks are less profit efficient than domestic equivalents, supporting the “home-field advantage” hypothesis in India. Further, increasing competition drives bank managers to make riskier lending and investment choices, decreasing bank profit efficiency. However, this effect varies depending on bank ownership and size.
Originality/value
Literature on the competition bank efficiency link is conspicuously scant, with a focus on technical and cost efficiency. Less is known regarding the influence of competition on bank profit efficiency. The article is one of the first to examine commercial bank profit efficiency and its relationship to banking sector competition. Additionally, the study work represents one of the first applications of the FRM presented by Papke and Wooldridge (1996) and the PDE provided by Belotti and Ilardi (2018).
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Ejaz Aslam, Aziz Ur Rehman and Anam Iqbal
The purpose of this study is to investigate the mediating role of intellectual capital (IC) on the association between corporate governance mechanism (CGM) and the financial…
Abstract
Purpose
The purpose of this study is to investigate the mediating role of intellectual capital (IC) on the association between corporate governance mechanism (CGM) and the financial efficiency of Islamic banks (Z-score, net investment income and loan to deposit) and verify it through standard mediation in the panel based on interaction.
Design/methodology/approach
The data of this study draws from 125 full-fledged Islamic banks and windows from 26 Organization of Islamic Cooperation (OIC) over the period of 2009 to 2019. A two-step system generalize method of moment estimation is used to test the hypotheses.
Findings
The results underwrite that the inclusion of IC as a mediating variable has influenced positively the corporate governance and financial efficiency of IBs. Besides, only CEO power and Shariah supervisory board positively affect the financial efficiency of IBs. While structural capital and relational capital positively affect the financial efficiency of IBs. Apart from that, results show that the CGM has a significant relationship with the IC value of IBs.
Research limitations/implications
These findings are valuable for policymakers and regulators to set policies to improve CG structure and effective use of IC resources to improve banking efficiency. Additionally, findings might be helpful for the bankers to proficiently use the IC as a premise to plan new strategies to get an upper hand in financial performance.
Originality/value
This study extends and contributes to the current literature by analysing the role of IC along with CG to boost the financial efficiency of banks in OIC countries.
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Nelli I. Akylbekova, Zarina T. Duishenalieva, Elmira D. Kuramaeva, Zhyldyz B. Myrzakhmatova and Tolendi A. Ashimbayev
The research aims to identify changes in the banking system of the Kyrgyz Republic, as well as the application of green banking and its promotion as an innovative benchmark. To…
Abstract
The research aims to identify changes in the banking system of the Kyrgyz Republic, as well as the application of green banking and its promotion as an innovative benchmark. To conceptually understand the problem, the authors applied abstract-logical methods of comparison and generalizations to study and comprehend the current results of scientific research by scientists from around the world. The authors analyzed the time series of development indicators of the banking sector for 2017–2022. The information base was statistical information provided by the National Bank of the Kyrgyz Republic. The banking system of the Kyrgyz Republic is developing progressively positively, in which green principles are beginning to be used to support green initiatives. For green banking to fully function, it is necessary to create an efficient and secure payment system that would help stimulate environmentally responsible financial transactions. For this purpose, the use of advanced technologies (e.g., blockchain technologies) will contribute to the modernization of the payment system. The high degree of dollarization of the banking sector helps attract foreign investment and makes it possible to develop foreign capital, which reduces the independence of the banking sector and hinders the free choice and implementation of priority green projects. Currently, there is a trend of de-dollarization, which poses new challenges for the banking sector to find compromises with foreign partners.
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