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Article
Publication date: 3 August 2020

Mostafa Abd-El-Barr, Kalim Qureshi and Bambang Sarif

Ant Colony Optimization and Particle Swarm Optimization represent two widely used Swarm Intelligence (SI) optimization techniques. Information processing using…

Abstract

Ant Colony Optimization and Particle Swarm Optimization represent two widely used Swarm Intelligence (SI) optimization techniques. Information processing using Multiple-Valued Logic (MVL) is carried out using more than two discrete logic levels. In this paper, we compare two the SI-based algorithms in synthesizing MVL functions. A benchmark consisting of 50,000 randomly generated 2-variable 4-valued functions is used for assessing the performance of the algorithms using the benchmark. Simulation results show that the PSO outperforms the ACO technique in terms of the average number of product terms (PTs) needed. We also compare the results obtained using both ACO-MVL and PSO-MVL with those obtained using Espresso-MV logic minimizer. It is shown that on average, both of the SI-based techniques produced better results compared to those produced by Espresso-MV. We show that the SI-based techniques outperform the conventional direct-cover (DC) techniques in terms of the average number of product terms required.

Details

Applied Computing and Informatics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2634-1964

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Article
Publication date: 10 August 2015

Naziruddin Abdullah, Alias Mat Derus and Husam-Aldin Nizar Al-Malkawi

The purpose of this paper is to examine the role of zakat (the Islamic tax) in alleviating poverty and inequality in Pakistan using a newly developed index, namely, the…

Abstract

Purpose

The purpose of this paper is to examine the role of zakat (the Islamic tax) in alleviating poverty and inequality in Pakistan using a newly developed index, namely, the Basic Needs Deficiency Index (BNDI).

Design/methodology/approach

The study formulates an index (BNDI) to measure the deficiency and effectiveness of zakat as one of the different items of government expenditure/spending to alleviate poverty. In this paper, Pakistan is chosen as a case study for two reasons: the availability and accessibility of data required for computing BNDI; and, in the past, no index such as this had been used to measure poverty in Pakistan.

Findings

The results obtained from the computation of the BNDI have been able to explain the effectiveness of zakat in alleviating poverty and inequality in Pakistan.

Practical implications

The findings of the study can be used by policymakers to measure and improve the effectiveness of zakat in reducing poverty and inequality.

Social implications

As the ultimate beneficiaries of zakat are the poor people, the outcome of this study may help improve their quality of life.

Originality/value

The paper develops a new methodology to measure poverty alleviation in Pakistan, focusing on the poor households’ consumption/expenditure on basic needs, government spending in terms of zakat and the number of zakat recipients as the three main determinants. The index developed in the present study can be applied to measure the performance of all Muslim countries whose provision of zakat is embedded in the national agenda to alleviate poverty.

Details

Humanomics, vol. 31 no. 3
Type: Research Article
ISSN: 0828-8666

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Article
Publication date: 16 December 2019

Yasin Mahmood, Maqsood Ahmad, Faisal Rizwan and Abdul Rashid

The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial…

Abstract

Purpose

The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial flexibility (FF).

Design/methodology/approach

The study used annual data for the period from 1991 to 2014 to examine the relationship between banking sector concentration, banking sector development, equity market development and corporate FF; hypotheses were tested using an unbalanced panel logistic regression model.

Findings

The paper provides empirical insights into the relationships between macroeconomic factors and corporate FF. The results suggest a substantial change in FF across firms; banking sector concentration discourages firms from borrowing, leading to the reduction of corporate borrowing, consequently an increase in FF can be observed. Banking sector development facilitates debt financing, hence reducing FF. Equity market development also has a positive impact on FF, as it is a substitute for debt financing.

Practical implications

The banking sector is an important provider of capital to business entities. A concentrated banking system discourages the provision of capital to firms; hence regulators have to take appropriate measures to resolve the problem of a reduced supply of capital. Banking sector development facilitates the provision of capital; further development may reduce bank lending rates to firms. Equity market development positively affects FF; hence, firm managers can use equity financing to resume FF. By following pecking order theory, managers use internal sources to finance value-maximizing investment projects, debt and issue shares as the last choice to get financing. When borrowing capacity is depleted, managers can obtain further funds by issuing stocks.

Originality/value

FF is an emergent area of research in advanced countries, while in developing economies, it is in the initial stages. Little work is available in this area to find the impact of banking sector concentration, banking sector development and equity market development, therefore, this study fills this gap in the existing literature.

Details

South Asian Journal of Business Studies, vol. 9 no. 1
Type: Research Article
ISSN: 2398-628X

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Article
Publication date: 4 November 2019

Yasin Mahmood, Abdul Rashid, Faisal Rizwan and Maqsood Ahmad

The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus…

Abstract

Purpose

The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus on well-developed financial markets and very little is known about corporate FF in less developed financial markets and emerging markets (Buvanendra et al., 2016). The present study contributes to filling this gap in the literature and provides a more practical and functional framework to assess the FF of firms located in emerging economies.

Design/methodology/approach

The study used annual data for the period from 1991 to 2018. To examine the relationship between macroeconomic indicators, institutional environment and corporate FF, hypotheses were tested using an unbalanced panel logistic regression model.

Findings

The paper provides empirical insights into the relationships between macroeconomic factors, institutional environment and corporate FF. The results suggest a substantial change in FF across firms. Inflation, institutional quality and banking sector development negatively affect FF, while equity market development has a significant positive impact. Gross domestic product growth was found to be an insignificant predictor of FF.

Practical implications

This study has practical implications for corporate finance managers, regulators and investors, who must consider the significant factors of this study when making economic decisions. Finance managers can thus make appropriate decisions regarding capital structure and FF. Regulators of the banking sector can take appropriate measures to enhance competition and increase the development of the banking sector. Further, regulators of the equity market can enhance the development of the market to enhance the supply of capital.

Originality/value

This study adds to the literature showing that not only firm-specific factors affect corporate FF, but country-specific macroeconomic and institutional factors also have a significant effect. It also adds to the literature in the area of corporate FF; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

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Article
Publication date: 10 November 2020

Ejaz Aslam and Razali Haron

The existing literature asserted that the Islamic banking industry progress significantly, but it has increasingly found asset deficient which assaulted the performance of…

Abstract

Purpose

The existing literature asserted that the Islamic banking industry progress significantly, but it has increasingly found asset deficient which assaulted the performance of Islamic banks (IBs). The aim of this study to examine the mediating role of intellectual capital (IC) on the relationship between corporate governance (CG) mechanisms and IBs performance is examined (ATO, NPM).

Design/methodology/approach

A panel sample of 129 IBs is drawn from the 29 organisation of Islamic cooperation (OIC) countries from 2008 to 2017. Two-step system generalized method of moments (2SYS-GMM) was used to account for the unobserved endogeneity and heteroscedasticity problem.

Findings

The empirical findings demonstrate that there is a significant impact of the CG mechanism on IC. Moreover, the empirical findings indicate that CG has a direct influence on banking performance but it affects indirectly through IC. IC also appears to have a mediation role in the relationship between the CG mechanism and the performance of IBs.

Research limitations/implications

As the empirical research on IC from CG point of view in Islamic banking is generally new in the banking literature, the output of this research will contribute to the building up of empirical framework and practices regarding IC in the Islamic banking industry by using the resource-based theory as a leading theory and agency theory as a sub theory. It is anticipated that this study provided a superior comprehensive discussion of the IC in IBs across OIC countries which discovers the CG mechanism to influence the IC to improve banking performance.

Practical implications

This study offers useful insights to the regulators and practitioners to draw the rules and regulations in improving the CG mechanism and the effectiveness of internal controls by acknowledging the importance of IC in Islamic banking institutions. Particularly, the findings of this study may be of benefit to bankers to efficiently use the IC as a premise to design new and creative strategies to achieve a competitive advantage in the banking industry.

Originality/value

The study is unique in its nature because it presents a successful model for IBs to concentrate more on the role of IC in enhancing banking performance, which might be used by the banks to rearrange the roles within CG, to place their priorities regarding the internal governance system and financial plans for competency enhancement.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Content available
Article
Publication date: 21 September 2020

Ejaz Aslam and Razali Haron

The purpose of this study is to examine the impact of corporate governance (CG) on intellectual capital efficiency (ICE) in Islamic banks (IBs) of Organisation of Islamic…

Abstract

Purpose

The purpose of this study is to examine the impact of corporate governance (CG) on intellectual capital efficiency (ICE) in Islamic banks (IBs) of Organisation of Islamic Cooperation (OIC) countries.

Design/methodology/approach

A sample of 129 IBs is drawn from the 29 OIC countries from 2008 to 2017. A two-step system of the generalised method of moments has been employed to account for the unobserved endogeneity and heteroscedasticity issue that arose due to time-variant and time-invariant variables.

Findings

The results revealed that CG measures, namely board size, non-executive directors do explain the extent and quality of ICE in the expected direction. In contrast, CEO duality, Shariah board and audit committee are negatively associated with the ICE. Moreover, the authors observed that male CEO in IBs has negative, but foreign ownership has a positive association with ICE in determining the extent of ICE in IBs. This study contributes specifically to the stakeholder theory and the literature of ICE and CG.

Research limitations/implications

The findings of the study provide insight into how a larger board can overcome skill deficiency and how making more investment in ICE would help to enhance productivity. Hence, bank managers, regulators, policymakers and shareholders have strong interest in designing the appropriate CG structure to develop ICE in banks.

Originality/value

This is one of the few studies which provide empirical evidence of CG mechanism to boost the ICE in the perspective of IBs of the OIC countries.

Details

Asian Journal of Accounting Research, vol. 5 no. 2
Type: Research Article
ISSN: 2443-4175

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Article
Publication date: 13 July 2020

Ejaz Aslam and Razali Haron

Corporate governance plays a significant role to overcome agency issues and develop the culture of transparency and openness. In this context, this paper aims to examine…

Abstract

Purpose

Corporate governance plays a significant role to overcome agency issues and develop the culture of transparency and openness. In this context, this paper aims to examine how corporate governance mechanisms affect the performance of Islamic banks (IBs).

Design/methodology/approach

Stepwise, two-step system generalize method of moment estimation technique is used in the analysis in which control variables are added into the model sequentially. This study used data on 129 IBs from 29 Islamic countries (Middle East, South Asia and Southeast Asia) during the period of 2008 to 2017.

Findings

The findings suggest that the audit committee (AUDC) and Shariah board (SB) have positive impact on the performance of IBs (return on assets and return on equity). However, board size and risk management committee have negative and significant effect on the performance of IBs. CEO duality and non-executive directors have mixed relationship with the performance of IBs. These results support the argument that IBs need to improve their financial performance through appropriate governance mechanism.

Research limitations/implications

The findings of the study added a new dimension to the governance research that could be a valuable source of knowledge for policymakers and regulators to improve the existing governance mechanism for better performance of IBs.

Originality/value

The study fills the gap in the literature by addressing the issue of corporate governance on performance of IBs across countries. Agency theory is discussed to explain the relationship between corporate governance mechanism and performance.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 6
Type: Research Article
ISSN: 1472-0701

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