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1 – 10 of 797Sulaiman Abdullah Saif Al-Nasser Mohammed and Datin Joriah Muhammed
The purpose of this paper is to investigate the performance of Islamic banks in developing countries from 2007 to 2010 which includes the period of the financial crisis by…
Abstract
Purpose
The purpose of this paper is to investigate the performance of Islamic banks in developing countries from 2007 to 2010 which includes the period of the financial crisis by empirically examining the way in which the macroeconomy affected Islamic banking performance (IBP) in developing countries. The empirical examination involves two approaches of measuring performance: Sharia-based and conventional-based performance measurement.
Design/methodology/approach
For this paper, the authors have utilized a Data Stream/Bank Scope database and data from the Bank Negara Malaysia (Malaysian Central Bank) to collect a panel set of annual financial information for Islamic banking from the year 2007-2010. The initial sample covers 34 Islamic banks from developing countries that are listed on the International Islamic Service Board. Furthermore, the authors adopted only those listed Islamic banks to tackle the data availability issue. The authors’ final sample comprised 136 observations with complete data as the numbers of Islamic banks in developing countries are low in comparison to their conventional peers. The financial crisis dummy follows America’s commonly used National Bureau of Economic Research timeline for the financial crisis. The authors also used the method of a generalized least square (GLS) method of pooled panel data analysis regression model. The rationale for employing the GLS technique was made on the basis of the ability of GLS to give less weight to the error term that is closely clustered around the mean, to improve the goodness of fit and to remove autocorrelation compared with normal, random, and fixed effect models.
Findings
The authors of this paper found that the macroeconomic factors reflected in gross domestic product, gross domestic product growth, and inflation rate have a significant positive relationship with the return on assets. In addition, a significant negative relationship was found between the financial dummy and IBP in developing countries. On the other hand, it failed to find evidence of a relationship between the macroeconomic factors and performance including the legal system and the financial crisis dummy, when the performance is reflected by the Zakat ratio. The result embedded that the financial crisis had an impact on the performance of Islamic banks in developing countries when viewed from the conventional banking perspective. The financial crisis played a role in reducing the profitability of Islamic banks which is consistent with a previous study by Hasan and Dridi (2011). However, in the view of Sharia, the financial crisis did not have any effect on IBP; even the macro factors did not have any effect on the level of performance.
Research limitations/implications
There are possible explanations for these contradictory coefficient signs. First, the contradictory signs of the coefficient for the same independent variable that was regressed with different dependent variables show that researchers would need to take caution in using the right indicators when measuring IBP. Conventional indicators bring different results in comparison to Islamic indicators (Badreldin, 2009; Mudiarasan. Kuppusamy, 2010; Zahra and Pearce, 1989). Second, Richard et al. (2009), having reviewed performance measurement-related publications in five of the leading management journals (722 articles between 2005 and 2007), suggested that the past studies reveal a multidimensional conceptualization of organizational performance with limited effectiveness of commonly accepted measurement practices. Accordingly, these studies call for more theoretically grounded research and debate for establishing which measures are appropriate in a given research context. Today, there is a general consensus that the old financial measures are still valid and relevant (Yip et al., 2009). However, these need to be balanced with more contemporary, intangible, and externally oriented measures. It has been argued that various researchers working in their own disciplines using functional performance measures (such as market share in marketing, schedule adherence in operations and so on) ought to link their discipline to focused performance measures of overall organizational performance.
Practical implications
Islamic banking has unique characteristics in comparison to conventional banking and this paper examines the differences between the two and also investigates the resilience of Islamic banks during a period of economic turbulence. Furthermore, due to these unique characteristics, a comparison cannot be made by using the conventional performance measures alone. In addition, amid the in-depth studies examining the resilience of Islamic banks during periods of economic crises, there are instances of theoretical disagreement in the extant empirical literature examining finance and economics. In that regard, the majority of the existing literature is either based on advanced markets or countries where the majority of the population practices the faith of Islam, and little is known about the performance of Islamic banking from the pooled emerging markets; particularly in developing countries.
Originality/value
Introducing Zakat as a performance measurement in Islamic banking context relating it to macroeconomic factors enhances the thinking of new research in Islamic theory about bank performance.
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Sulaiman Abdullah Saif Alnasser Mohammed
Understanding money laundering plays an important role in understanding economic growth (EG). Extensive research is conducted about that, previous research lacks answers about the…
Abstract
Purpose
Understanding money laundering plays an important role in understanding economic growth (EG). Extensive research is conducted about that, previous research lacks answers about the relationship of anti-money laundering (AML) and EG by investigating the roles of the performance of Islamic banks, legal environment, financial crisis (FC) and bank size. Therefore, the purpose of this paper is to cover that gap.
Design/methodology/approach
SmartPLS 3.0 was used and 33 Islamic banks were selected from developing countries between 2007 and 2010.
Findings
Note that AML, Islamic bank performance, legal environment, and FC are significantly related to EG.
Research limitations/implications
The research would be of importance to those seeking to understand the determinants of EG; it is also beneficial for those writing books about money laundering and Islamic banks in developing countries. The limitation of the study is the low number of Islamic banks that have complete data. Thus, this could be future research contribution.
Originality/value
To the best knowledge of the author, research on money laundering and Islamic banks in developing countries are not extensive, we have found an ample room to discuss the said variables.
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Vincent Adela, Mac Junior Abeka, George Tackie, Comfort Ama Akorfa Anipa, Deborah Esi Gyanba Mbir and Cornelius Adorm-Takyi
The purpose of this paper is to investigate the effect of institutional structures on the strength of auditing and financial reporting standards.
Abstract
Purpose
The purpose of this paper is to investigate the effect of institutional structures on the strength of auditing and financial reporting standards.
Design/methodology/approach
This paper employs a panel data of 36 African countries over the period 2000–2018. System generalised method of moments (SGMM) was employed to estimate the relationship between institutional structures and the strength of auditing and financial reporting standards in Africa.
Findings
The findings of this paper indicate a positive and statistically significant relationship between institutional structures and the strength of auditing and financial reporting standards. As a further analysis, the study finds that the relationship between institutional structures and the strength of auditing and financial reporting standards is stronger for economies with common-law accounting traditions than those with civil-law origin.
Practical implications
The paper has important implications for countries striving to adopt and implement auditing and financial reporting standards fully. Such efforts must begin with establishing strong institutional structures in those countries.
Originality/value
This study presents the first empirical panel data evidence on the effect of institutional structures on the strength of auditing and financial reporting standards in Africa. Further, the methodology employed in this study can be regarded as effective in testing the phenomenon in other regions, or it can be employed as a guiding model for future research in the area.
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Mallika Saha and Kumar Debasis Dutta
Despite numerous evidence of policy trade-off in financial inclusion-stability nexus, little is known about the role of governance quality to align policy goals and maximizing the…
Abstract
Purpose
Despite numerous evidence of policy trade-off in financial inclusion-stability nexus, little is known about the role of governance quality to align policy goals and maximizing the social benefits. Therefore, to fill the gap, this study focuses to investigate the moderating effect of country governance (CG) in the interplay between financial-inclusion (FI) and financial-stability (FS), using a large panel of 84 economies covering the years 2004–2017.
Design/methodology/approach
For attaining this objective, the study constructs several indexes for FI, FS and CG using principal component analysis (PCA) and examines how FI influences FS at different CG levels applying advanced econometrics.
Findings
The results show that CG plays a very crucial role in eradicating the trade-off and strengthens the synergy between FI and FS. The findings are insensitive to several robustness validations and could be constructive for policymakers to devise policies and to ensure financial stability.
Originality/value
As far as the authors are aware, this is the only paper that empirically explains CG's role in FI-FS nexus.
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Moustafa Salman Haj Youssef, Hiba Maher Hussein and Ioannis Christodoulou
The purpose of this paper is to examine the national-level predictors of country competitiveness using the concept of managerial discretion. The objective is to empirically link…
Abstract
Purpose
The purpose of this paper is to examine the national-level predictors of country competitiveness using the concept of managerial discretion. The objective is to empirically link the strategic management discipline particularly the upper echelon theory to the concept of country performance measured by competitiveness.
Design/methodology/approach
This paper tests the proposed relationship between managerial discretion and country competitiveness using a sample of 18 countries from 6 different regional clusters. Discretion scores are generated from survey responses of prominent senior management consultants, while country competitiveness is measured via the Global Competitiveness Index developed by the World Economic Forum. A multi-level regression analysis on the panel data set spanning 10 years of national competitiveness levels is used to empirically demonstrate the association between managerial discretion and country competitiveness.
Findings
The authors show that managerial discretion is a direct predictor of national competitiveness through its ability to provide CEOs with a wider array of actions to innovate and enhance firm performance which will ultimately contribute to country competitiveness.
Practical implications
The positive influence of managerial discretion on country competitiveness provide an interesting framework to examine the influence of firms over public policy-making. Additionally, with businesses becoming increasingly globalized, the profile of countries becomes of a great importance and can become a tool for corporate strategic decisions, such as: market entry strategies.
Originality/value
By linking the well-known term of competitiveness to the concept of managerial discretion, the authors provide a totally new approach to assess country performance. Additionally, this paper contributes to the growing literature of managerial discretion by discovering new national-level consequences.
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The object of this research is the reconstruction of the existing legal response by European Union states to the phenomenon of immigration. It seeks to analyse the process of…
Abstract
Purpose
The object of this research is the reconstruction of the existing legal response by European Union states to the phenomenon of immigration. It seeks to analyse the process of conferral of protection.
Design/methodology/approach
One main dimension is selected and discussed: the case law of the national courts. The study focuses on the legal status of immigrants resulting from the intervention of these national courts.
Findings
The research shows that although the courts have conferred an increasing protection on immigrants, this has not challenged the fundamental principle of the sovereignty of the states to decide, according to their discretionary prerogatives, which immigrants are allowed to enter and stay in their territories. Notwithstanding the differences in the general constitutional and legal structures, the research also shows that the courts of the three countries considered – France, Germany and Spain – have progressively moved towards converging solutions in protecting immigrants.
Originality/value
The research contributes to a better understanding of the different legal orders analysed.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Dana L. Haggard and Stephen Haggard
We proposed a model in which culture plays a dominant role, along with religion and legal origin, in determining the quality of governance in a country. We examined four…
Abstract
We proposed a model in which culture plays a dominant role, along with religion and legal origin, in determining the quality of governance in a country. We examined four dimensions of culture and four measurements of governance quality across 71 countries. Our empirical results demonstrated the dominant role played by culture, over and above religion and legal origin, in explaining governance quality. As culture is persistent and unlikely to be easily changed, efforts to improve governance quality might be doomed to failure in nations with cultural values that are hostile to good governance.
As high-tech industries are the main responsible for research and development (R&D), the purpose of this paper is to investigate some of the possible determinants of R&D…
Abstract
Purpose
As high-tech industries are the main responsible for research and development (R&D), the purpose of this paper is to investigate some of the possible determinants of R&D investment in this type of industry.
Design/methodology/approach
The analysis is based on a sample of European high-tech industries represented both by countries of civil law origin and common law origin. The authors used data from 155 high-tech firms in the period between 2011 and 2016. The sample was collected from Amadeus database. The panel data methodology was used to test the dependence of R&D expenses ratio according to different variables. Specifically, the authors have used the generalized method of moments (GMM) estimation method.
Findings
The results point out that there are differences in the explanation of the R&D ratio depending on whether the authors are dealing with countries of civil legal origin or common legal origin. The evidence also suggests that the intangible assets, contrary to the expect result, have a negative influence on R&D. Probably in this recovery time, as de global financial crisis and the sovereign debt crisis for Eurozone countries, the high-tech firms are using their intangible assets to create value and not for more investments in R&D. Companies are not renewing their asset stocks.
Originality/value
As high-tech companies are traditionally rich in R&D, this research can contribute with additional pieces to the knowledge of the factors that contribute to this. Thereby, this study may be interesting for managers, investors and civil society. This study adds value as it is unique in addressing this topic on this new dimension, with respect to the sample and indicators presented.
Propósito
Como las industrias de alta tecnología son las principales responsables por la I + D, proponemos investigar algunos de los posibles determinantes de la inversión en I + D en este tipo de industria.
Diseño/metodología
Nuestro análisis se basa en una muestra de indústrias europeas de alta tecnología representadas tanto por países de origen civil como por derecho consuetudinario. Utilizamos datos de 155 empresas de alta tecnología en el período comprendido entre 2011 y 2016. Nuestra muestra se recopiló de la base de datos Amadeus. La metodología Panel Data se utilizó para evaluar la dependencia del índice de gastos de I + D de acuerdo con diferentes variables. Específicamente, hemos utilizado el método de estimación del Método Generalizado de Momentos (GMM).
Resultados
Nuestros resultados señalan que existen diferencias en la explicación de la relación de I + D dependiendo de si estamos tratando con países de origen legal civil u origen legal común. Nuestra evidencia también sugiere que los activos intangibles, al contrario del resultado esperado, tienen una influencia negativa en la I + D. Probablemente en este tiempo de recuperación económica, desde la crisis financiera mundial y la crisis de la deuda soberana para los países de la zona euro, las empresas de alta tecnología están utilizando sus activos intangibles para crear valor y no para más inversiones en I + D. Las empresas no renuevan sus activos.
Originalidad/valor
Dado que las empresas de alta tecnología son tradicionalmente ricas en I + D, esta investigación puede contribuir con piezas adicionales al conocimiento de los factores que contribuyen a esto. Por lo tanto, este artículo puede ser interesante para gerentes, inversores y la sociedad civil. Este artículo agrega valor, ya que es único al abordar este tema en esta nueva dimensión, con respecto a la muestra y los indicadores presentados.
Objetivo
Como as indústrias de alta tecnologia são as principais responsáveis pela investigação e desenvolvimento, neste trabalho propomos investigar alguns dos possíveis determinantes da I&D nesse tipo de indústria.
Metodologia
A Nossa análise é baseada em uma amostra de indústrias europeias de alta tecnologia representadas por países de origem do direito civil e de direito comum. Foram utilizados dados de 155 empresas de alta tecnologia no período compreendido entre 2011 e 2016. Os dados foram recolhidos da base de dados Amadeus. Foi usada a metodologia de Dados em Painel para testar a dependência entre as despesas de I&D e as diferentes variáveis explicativas. Especificamente, usamos o método de estimação Método generalizado de momentos (GMM).
Resultados
Os nossos resultados apontam que existem diferenças na explicação do índice de I&D, dependendo de estarmos lidando com países de origem legal civil ou de origem legal comum. As evidências também sugerem que os ativos intangíveis, ao contrário do resultado esperado, influenciam negativamente a I&D. Provavelmente neste período de recuperação económica, desde a crise financeira global e a crise da dívida soberana dos países da zona do euro, as empresas de alta tecnologia estão a usar os seus ativos intangíveis para criar valor e não para mais investimentos em I&D. As empresas não estão a renovar os seus ativos.
Originalidade/valor
Como as empresas de alta tecnologia são tradicionalmente ricas em I&D, este trabalho pode contribuir com peças adicionais para o conhecimento dos fatores que contribuem para esse facto. Assim, este artigo pode ser interessante para gestores, investidores e sociedade civil. Trata-se de uma investigação que agrega valor, pois é único ao abordar este tópico nesta nova dimensão, com relação à amostra e às variáveis apresentadas.
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Dana L. Haggard and K. Stephen Haggard
This study provides insight into the proportion of the variation across countries in the desirable outcomes of freedom and peace that can be accounted for using a set of national…
Abstract
This study provides insight into the proportion of the variation across countries in the desirable outcomes of freedom and peace that can be accounted for using a set of national characteristics which are difficult, if not impossible, to change. The majority of prior studies in this area have utilized bivariate (correlational) analysis. While these studies have made important contributions to the field, they have not been able to disentangle the effects of other important national characteristics from the effect of culture on freedom and peace. Through our multivariate framework, we are able to shed light on the relative importance of these national characteristics in explaining the variation in freedom and peace across countries.