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Article
Publication date: 14 April 2014

Hussein A. Abdou, Shaair T. Alam and James Mulkeen

This paper aims to distinguish whether the decision-making process of the Islamic financial houses in the UK can be improved through the use of credit scoring modeling…

Abstract

Purpose

This paper aims to distinguish whether the decision-making process of the Islamic financial houses in the UK can be improved through the use of credit scoring modeling techniques as opposed to the currently used judgmental approaches. Subsidiary aims are to identify how scoring models can reclassify accepted applicants who later are considered as having bad credit and how many of the rejected applicants are later considered as having good credit, and highlight significant variables that are crucial in terms of accepting and rejecting applicants, which can further aid the decision-making process.

Design/methodology/approach

A real data set of 487 applicants is used consisting of 336 accepted credit applications and 151 rejected credit applications made to an Islamic finance house in the UK. To build the proposed scoring models, the data set is divided into training and hold-out subsets. The training subset is used to build the scoring models, and the hold-out subset is used to test the predictive capabilities of the scoring models. Seventy per cent of the overall applicants will be used for the training subset, and 30 per cent will be used for the testing subset. Three statistical modeling techniques, namely, discriminant analysis, logistic regression (LR) and multilayer perceptron (MP) neural network, are used to build the proposed scoring models.

Findings

The findings reveal that the LR model has the highest correct classification (CC) rate in the training subset, whereas MP outperforms other techniques and has the highest CC rate in the hold-out subset. MP also outperforms other techniques in terms of predicting the rejected credit applications and has the lowest misclassification cost above other techniques. In addition, results from MP models show that monthly expenses, age and marital status are identified as the key factors affecting the decision-making process.

Originality/value

This contribution is the first to apply credit scoring modeling techniques in Islamic finance. Also in building a scoring model, the authors' application applies a different approach by using accepted and rejected credit applications instead of good and bad credit histories. This identifies opportunity costs of misclassifying credit applications as rejected.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 7 no. 1
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 12 February 2018

Abdalrhman Alnabsha, Hussein A. Abdou, Collins G. Ntim and Ahmed A. Elamer

The purpose of this paper is to investigate the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and…

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Abstract

Purpose

The purpose of this paper is to investigate the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and voluntary disclosure behaviour.

Design/methodology/approach

Multivariate regression techniques are used to estimate the effect of corporate board and ownership structures on mandatory and voluntary disclosures of a sample of Libyan listed and non-listed firms between 2006 and 2010.

Findings

First, the authors find that board size, board composition, the frequency of board meetings and the presence of an audit committee have an impact on the level of corporate disclosure. Second, results indicate that ownership structures have a non-linear effect on the level of corporate disclosure. Finally, the authors document that firm age, liquidity, listing status, industry type and auditor type are positively associated with the level of corporate disclosure.

Research limitations/implications

Future research could investigate disclosure practices using other channels of corporate disclosure media, such as corporate websites. Useful insights may be offered also by future studies by conducting in-depth interviews with corporate managers, directors and owners regarding these issues.

Practical implications

The evidence relating to the important role that corporate governance mechanisms play in shaping the expectations relating to the level of corporate voluntary and/or mandatory disclosures may be useful in informing investor decisions, as well as future policy and regulatory initiatives.

Originality/value

This paper contributes to the existing literature by examining the governance-disclosure nexus relating to both mandatory and voluntary disclosures in both listed and non-listed firms operating in a developing country setting.

Article
Publication date: 25 September 2009

Hussein A. Abdou and John Pointon

The main aims of this paper are: first, to investigate how decisions are currently made within the Egyptian public sector environment; and, second, to determine whether…

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Abstract

Purpose

The main aims of this paper are: first, to investigate how decisions are currently made within the Egyptian public sector environment; and, second, to determine whether the decision making can be significantly improved through the use of credit scoring models. A subsidiary aim is to analyze the impact of different proportions of sub‐samples of accepted credit applicants on both efficient decision making and the optimal choice of credit scoring techniques.

Design/methodology/approach

Following an investigative phase to identify relevant variables in the sector, the research proceeds to an evaluative phase, in which an analysis is undertaken of real data sets (comprising 1,262 applicants), provided by the commercial public sector banks in Egypt. Two types of neural nets are used, and correspondingly two types of conventional techniques are applied. The use of two evaluative measures/criteria: average correct classification (ACC) rate and estimated misclassification cost (EMC) under different misclassification cost (MC) ratios are investigated.

Findings

The currently used approach is based on personal judgement. Statistical scoring techniques are shown to provide more efficient classification results than the currently used judgemental techniques. Furthermore, neural net models give better ACC rates, but the optimal choice of techniques depends on the MC ratio. The probabilistic neural net (PNN) is preferred for a lower cost ratio, whilst the multiple discriminant analysis (MDA) is the preferred choice for a higher ratio. Thus, there is a role for MDA as well as neural nets. There is evidence of statistically significant differences between advanced scoring models and conventional models.

Research limitations/implications

Future research could investigate the use of further evaluative measures, such as the area under the ROC curve and GINI coefficient techniques and more statistical techniques, such as genetic and fuzzy programming. The plan is to enlarge the data set.

Practical implications

There is a huge financial benefit from applying these scoring models to Egyptian public sector banks, for at present only judgemental techniques are being applied in credit evaluation processes. Hence, these techniques can be introduced to support the bank credit decision makers.

Originality/value

Thie paper reveals a set of key variables culturally relevant to the Egyptian environment, and provides an evaluation of personal loans in the Egyptian public sector banking environment, in which (to the best of the author's knowledge) no other authors have studied the use of sophisticated statistical credit scoring techniques.

Details

International Journal of Managerial Finance, vol. 5 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 2 January 2009

Hussein A. Abdou

This paper aims to investigate the efficiency and effectiveness of alternative credit‐scoring models for consumer loans in the banking sector. In particular, the focus is…

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Abstract

Purpose

This paper aims to investigate the efficiency and effectiveness of alternative credit‐scoring models for consumer loans in the banking sector. In particular, the focus is upon the financial risks associated with both the efficiency of alternative models in terms of correct classification rates, and their effectiveness in terms of misclassification costs (MCs).

Design/methodology/approach

A data set of 630 loan applicants was provided by an Egyptian private bank. A two‐thirds training sample was selected for building the proposed models, leaving a one‐third testing sample to evaluate the predictive ability of the models. In this paper, an investigation is conducted into both neural nets (NNs), such as probabilistic and multi‐layer feed‐forward neural nets, and conventional techniques, such as the weight of evidence measure, discriminant analysis and logistic regression.

Findings

The results revealed that a best net search, which selected a multi‐layer feed‐forward net with five nodes, generated both the most efficient classification rate and the most effective MC. In general, NNs gave better average correct classification rates and lower MCs than traditional techniques.

Practical implications

By reducing the financial risks associated with loan defaults, banks can achieve a more effective management of such a crucial component of their operations, namely, the provision of consumer loans.

Originality/value

The use of NNs and conventional techniques in evaluating consumer loans within the Egyptian private banking sector utilizes rigorous techniques in an environment which merits investigation.

Details

The Journal of Risk Finance, vol. 10 no. 1
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 23 May 2018

Ahmed Abdalla, Ahmed Elsetouhi, Abdelhakim Negm and Hussein Abdou

The purpose of the paper is to fill gaps in the existing fit and turnover intention (TI) literature by investigating a more comprehensive model, in which TI is proposed to…

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Abstract

Purpose

The purpose of the paper is to fill gaps in the existing fit and turnover intention (TI) literature by investigating a more comprehensive model, in which TI is proposed to be influenced by the interplays of three multidimensional types of fit including, person-organization (P-O) fit, person-group (P-G) fit, and person-job (P-J) fit.

Design/methodology/approach

Participants were selected from different specializations within Mansoura University medical centers, where each medical center was represented proportionately within the sample. Data were collected using self-administered questionnaires. Questionnaires were provided to 850 employees who agreed to participate. Of the 850 questionnaires distributed, 385 were valid and complete (n=385). Partial least squares analysis was utilized for the analyses.

Findings

Results showed that P-O fit, P-G fit, and P-J fit were positively related to each other and negatively related to TI. Furthermore, the negative relationship between P-O fit and TI is partially mediated by P-G fit and P-J fit.

Originality/value

The present study simultaneously examines the multidimensional effects of different fit perceptions on TI. In doing so, we identify which of the fit perspectives influence TI more intensely. Moreover, the authors advance current insights by investigating the mediating roles of P-G fit and P-J fit in the relationship between P-O fit and TI.

Details

Personnel Review, vol. 47 no. 4
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 9 November 2022

Abdellatif Hussein Abogazia, Hafiza Aishah Hashim, Zalailah Salleh and Abdou Ahmed Ettish

This study aims to investigate the moderating effect of external financing needs on the relationship between the disclosure level of integrated reporting (IR) and firm…

Abstract

Purpose

This study aims to investigate the moderating effect of external financing needs on the relationship between the disclosure level of integrated reporting (IR) and firm value using evidence from Egypt.

Design/methodology/approach

This study uses a panel regression analysis for a matched sample of 50 companies listed on the Egyptian Stock Exchange (EGX), specifically from EGX100. The sample covers four years (2017–2020). The current study uses content analysis to measure IR and Tobin’s Q as a proxy for firm value.

Findings

The findings reveal a significant positive relationship between the disclosure level of IR and firm value. In addition, the authors find that external financing needs moderate the relationship between IR and firm value. It is concluded that the higher the disclosure level of IR content, the higher the firm’s value, and that this relationship strengthens in firms with high needs for external financing.

Practical implications

Several practical implications can be derived from the results of the current study. Policymakers and regulators can impose mandatory requirements for IR in Egypt. It also opens new insights for board members, managers, analysts and auditors in forming financing decisions based on annual reports.

Originality/value

The present study has a novel insight from a developing country and significant contributions to the extant literature. The study provides empirical evidence from an emerging economy and an insight into how external financing can be used for firms with different levels of IR. It also provides a comprehensive disclosure index to estimate the level of IR.

Details

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

Keywords

Book part
Publication date: 1 March 2021

Siti Khomsatun, Hilda Rossieta, Fitriany Fitriany and Mustafa Edwin Nasution

The unique characteristic of Islamic bank leads in governance and disclosure. Using stakeholder, signaling, and market discipline theory, governance and adequate…

Abstract

The unique characteristic of Islamic bank leads in governance and disclosure. Using stakeholder, signaling, and market discipline theory, governance and adequate disclosure may increase bank soundness. This study aims to investigate the relationship of sharia disclosure and Sharia Supervisory Board in influencing Islamic bank soundness in the different regulatory framework of the country. Using purposive sampling, the research covered 84 Islamic banks in 16 countries during the period 2013–2015 with lag data of Islamic bank soundness. The result shows sharia disclosure influences on Islamic bank soundness for management efficiency, capital adequacy ratio, asset quality, and liquidity. The results also show that sharia disclosure mediates the indirect effect of SSB on Islamic bank soundness. The regulatory framework (sharia accounting standard and SSB regulation) shows moderating effect of regulation framework proved on the association of sharia disclosure with management efficiency, capital, and liquidity. The effect is indirectly depending on the regulatory framework for proxy management efficiency, capital, and liquidity. The implication of the research suggests that sharia disclosure could increase the market discipline mechanism of Islamic bank stream. The Islamic bank can increase the transparency using sharia disclosure as a branding for increasing public trust, even though in the deficient Islamic bank regulation countries.

Details

Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics
Type: Book
ISBN: 978-1-83867-359-8

Keywords

Article
Publication date: 29 November 2022

Ronaldo Gomes Dultra-de-Lima and Luiz Artur Ledur Brito

The absorptive capacity (AC) leads to firm performance and influences the development and evolution of capabilities and routines, but the influence of AC in projects…

Abstract

Purpose

The absorptive capacity (AC) leads to firm performance and influences the development and evolution of capabilities and routines, but the influence of AC in projects remains unclear. Therefore, this study aims to investigate the effect of AC on project performance (PP) in the construction industry of Sao Paulo State, Brazil.

Design/methodology/approach

The authors conducted a survey questionnaire with project managers and collected 157 responses in the construction sector. They also used confirmatory factor analysis (CFA) and multiple linear regression techniques to assess the data.

Findings

The study provides empirical evidence that realized absorptive capacity (RAC) has a direct and indirect positive effect on PP. Conversely, the potential absorptive capacity (PAC) only indirectly impacts PP through project management practices (PMPs). PAC and RAC positively influence PMPs that in turn positively influence PP. The findings reinforce the relevance of AC to the development of internal knowledge for processes and routines, thereby enhancing PP.

Practical implications

The findings provide practical implications: the AC influences PP by refining and adapting routines. Moreover, the consistent application of accepted practices is not enough for PP, but the ability to adapt, adjust and transform the relevant knowledge into routines.

Originality/value

This paper provides empirical evidence that the knowledge application of PMPs improves organizational performance through PP. However, despite what the literature has discussed, this paper proved that AC has no effect as a moderating factor between PMPs and performance; however, AC's role significantly impacts PP through PMPs.

Details

International Journal of Managing Projects in Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8378

Keywords

Executive summary
Publication date: 30 June 2017

EGYPT: Judiciary may be fighting a losing battle

Details

DOI: 10.1108/OXAN-ES221865

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 27 August 2021

Ala Eldin Awawdeh, Mohammed Ananzeh, Ahmad Ibrahiem El-khateeb and Ahmad Aljumah

The aim of this study is to estimate the relationship between technological innovation and corporate environmental performance among energy companies working in Egypt.

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Abstract

Purpose

The aim of this study is to estimate the relationship between technological innovation and corporate environmental performance among energy companies working in Egypt.

Design/methodology/approach

The study extended the aim with the intention to assess the role of green financing in enhancing corporate environmental performance. Partial least squares (PLS)-based structural equation modeling (SEM) is applied to estimate the nexus among study variables.

Findings

The results indicated that technological innovation influenced environmental performance and has a positive impact on company performance. The role of green financing for environmental performance is also significant and positive. Moreover, corporate social responsibility (CSR) has insignificant role in environmental performance of the energy companies in the study context.

Research limitations/implications

The study offers a valuable model for general managers of manufacturing organizations and policymakers to manage CSR, environmental strategy and green innovation in examining environmental performance. It can help to assist general managers of large manufacturing organizations to strengthen their internal resources like CSR, environmental strategy and green innovation to enhance environmental performance.

Practical implications

The findings of this article will help the practitioners to design policies regarding sustainable energy systems and green finance in the presence of any natural calamity.

Originality/value

This study primarily complements the existing literature by establishing how green financing and CSR can augment and/or interact between technological innovation and corporate environmental performance under COVID-19 crises, in a developing country.

Details

China Finance Review International, vol. 12 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

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