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Article
Publication date: 19 February 2021

Nirmol Chandra Das, Mohammad Ashraful Ferdous Chowdhury and Md. Nazrul Islam

The purpose of this study primarily is to investigate the heterogeneous effect of leverage on performance of the listed nonfinancial joint stock companies in Bangladesh.

Abstract

Purpose

The purpose of this study primarily is to investigate the heterogeneous effect of leverage on performance of the listed nonfinancial joint stock companies in Bangladesh.

Design/methodology/approach

A large panel sample of 165 listed nonfinancial firms under different industries of Bangladesh studied for the period 2007–2016 employing the dynamic panel approaches, namely, differenced generalized method of moments (GMM) and system GMM. The asymmetric relationship between leverage and performance is also examined by quantile regression approach.

Findings

GMM showed that the leverage indicators have the negative impact on the performance of the firms in terms of return on equity and return on asset while the quantile regressions revealed the heterogeneous relationship between leverage and profitability. It showed that greater negative impact of leverage on performance in high-profitable firms than low-profitable firms.

Research limitations/implications

The study is confined to only the listed nonfinancial joint-stock companies of Bangladesh.

Practical implications

The asymmetric relationship between leverage and financial performance identified in this study would be the helpful tool for financial managers for optimal capital structure decisions.

Originality/value

This is one of the first in-depth attempts to find the nonlinear heterogeneous effect of leverage on firms' performance.

Details

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

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Article
Publication date: 21 August 2017

Ajim Uddin, Mohammad Ashraful Ferdous Chowdhury and Md. Nazrul Islam

The purpose of this paper is to examine the resiliency between conventional banks (CBs) and Islamic banks (IBs) in Bangladesh at the financial crisis, pre-crisis and…

Abstract

Purpose

The purpose of this paper is to examine the resiliency between conventional banks (CBs) and Islamic banks (IBs) in Bangladesh at the financial crisis, pre-crisis and post-crisis period.

Design/methodology/approach

Data from 25 banks, 18 CBs and 7 IBs, operating in Bangladesh during the period 2005-2014 have been collected and divided into three stages: the pre-crisis period (2005-2006), the crisis period (2007-2008) and the post-crisis period (2009-2014). Dynamic generalized method of moments and quantile regression analysis have been used for this study.

Findings

This paper uses Z-score as an indicator of bank stability and found a significant difference in stability between IBs and CBs during the financial crisis. In addition, this paper also tries to identify the type of banks that performed better during pre-crisis, crisis and post-crisis periods but found no significant differences between IBs and CBs in this regards. For robustness, quantile regression found that the statistical significance level of credit risk, capital adequacy ratio and efficiency ratio of CBs and IBs differ at different percentile.

Originality/value

Most of the previous studies were conceptual or narrative and conducted on a global basis, not country-specific. To filling the country-level research gap, this study provides a meaningful insight about how these two types of banks performed in different periods.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 10 no. 3
Type: Research Article
ISSN: 1753-8394

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Book part
Publication date: 19 December 2016

Mohammad Ashraful Ferdous Chowdhury, Mohammad Shoyeb, Chowdhury Akbar and Md. Nazrul Islam

The purpose of this study is to examine the effect of risk sharing and non-risk sharing instruments on both the profitability of Islamic banks and the economic growth of…

Abstract

Purpose

The purpose of this study is to examine the effect of risk sharing and non-risk sharing instruments on both the profitability of Islamic banks and the economic growth of the country. This study also aims to improve the profit and loss sharing-based asset growth of Islamic banks.

Methodology/approach

The data for this study are obtained from the annual reports of all Islamic banks from Bangladesh using Bank scope database and annual report for the period of 1983–2014. The research uses Autoregressive Distributive Lag approach.

Findings

The findings reveal that risk sharing instruments are positively related to profitability and the economic growth of the country. This study also finds that non-risk sharing instruments play a predominant role in the profitability of the Islamic bank but are negatively related to the economic growth of the country.

Research implications

Banks and other financial institutions need to pay greater attention to systemic risk created by risk transfer and apply risk sharing methods of financing more vigorously than has hitherto been the case.

Originality/value

This study will also contribute to the literature as relatively few Islamic financial literatures deal with the relationship between equity financing and profitability which may make a strong contribution to the area of Islamic finance.

Details

Advances in Islamic Finance, Marketing, and Management
Type: Book
ISBN: 978-1-78635-899-8

Keywords

Content available
Book part
Publication date: 19 December 2016

Abstract

Details

Advances in Islamic Finance, Marketing, and Management
Type: Book
ISBN: 978-1-78635-899-8

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Article
Publication date: 3 July 2020

Md. Shamsul Arefin, Md. Shariful Alam, Nazrul Islam and Mateusz Molasy

Researchers have shown increasing interest, in recent times, in organizational politics and how it affects employees and organizations. This paper aims to investigate how…

Abstract

Purpose

Researchers have shown increasing interest, in recent times, in organizational politics and how it affects employees and organizations. This paper aims to investigate how perceived organizational politics (POPS) impact employee behaviors such as task performance, organizational citizenship and turnover intention, by affecting work-family conflict.

Design/methodology/approach

A sample of 287 full-time frontline hotel employees in Bangladesh was collected. A hierarchical regression analysis was applied to test the hypotheses. Data were analyzed using SPSS and AMOS software.

Findings

The results show that work–family conflict plays a mediating role in the indirect effect of POPS on task performance, organizational citizenship behavior (OCB) and turnover intention. The findings of the study also suggest that POPS has a positive association with work–family conflict and turnover intention, and negative association with task performance and OCB.

Research limitations/implications

This study cannot confirm causal inference, which can be the scope for future studies.

Practical implications

Managers may design the work environment in ways that ensure work and family interface and employee retention. Training programs can help employees deal with organizational politics and potential impact on work and nonwork problems. Managers should provide employees with the necessary support to sustain in-role and extra-role behavior in the political environment.

Originality/value

To the best of our knowledge, no prior studies have been carried out with this scope in the South Asian context.

Details

South Asian Journal of Business Studies, vol. 9 no. 3
Type: Research Article
ISSN: 2398-628X

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Article
Publication date: 4 June 2019

Hui Shan Lee, Fan Fah Cheng, Wai Mun Har, Annuar Md Nassir and Nazrul Hisyam Ab Razak

Malaysia is recognised as an emerging country with a large Muslim population, making the Malaysian Takaful industry the largest Takaful market in the Southeast Asia region…

Abstract

Purpose

Malaysia is recognised as an emerging country with a large Muslim population, making the Malaysian Takaful industry the largest Takaful market in the Southeast Asia region and, notably, one of the fastest growing markets globally. Malaysia is also the first country globally to implement a risk-based capital framework for Takaful. Therefore, the purpose of this paper is to identify the factors that influence the efficiency level (cost efficiency and technical efficiency) of the Takaful industry and to examine the effects of Takaful insurance firms’ specific factors and corporate governance factors that influence the efficiency of Takaful insurance in Malaysia.

Design/methodology/approach

In this paper, the efficiency level of the Malaysian Takaful industry was examined between 2011 and 2015. The sample consisted of 11 family Takaful and 8 general Takaful operators. Two-stage Data Envelopment Analysis (DEA) was used by first, conducting non-parametric frontier data envelopment analysis to obtain a DEA score for each operator. This was followed by panel regression with the DEA scores as the dependent variable and the insurance firms’ specific factors and corporate governance factors as the independent variables.

Findings

The results of DEA indicate that Takaful operators in general have allocative inefficiency but family Takaful is more cost efficient than general Takaful. Results of panel data analysis reveal that corporate governance factors do influence the cost efficiency but find no evidence on the firm-specific factors towards the cost efficiency and technical efficiency on Takaful operators. Board size and the proportion of non-executive directors impose a negative and significant relationship with cost efficiency, while proportion of Muslim directors in the board is not significant.

Research limitations/implications

This paper focused solely on Malaysia which uses strict regulations governing the Takaful insurance market. Due diligence was also performed to minimise any limitation in the paper. It is proposed that future studies should examine this issue in greater detail by incorporating more data from other Muslim countries.

Practical implications

The findings of this paper have significant implications for policymakers to understand the efficiency condition in the Takaful market. Takaful operators should maintain a small board size with a higher proportion of executive directors, given they could improve the level of effective decision-making to enhance the cost efficiency. As corporate governance factors are significant, Takaful operators in Malaysia should also undertake transparent disclosure practice and reporting such as providing adequate and relevant information related to Shariah compliance and principles to provide a robust foundation as the Takaful market leader regarding Takaful regulations globally.

Social implications

The consumer is able to make a better decision when choosing Takaful insurance company to protect their interests.

Originality/value

No similar paper has been undertaken to the best of the researcher’s knowledge using similar research design and scope to investigate the efficiency of Takaful insurance as in this paper. Takaful insurance is a rapidly growing industry in Malaysia, setting a prime example to other countries globally. Malaysia was selected for this study, as it is the only nation that has implemented the most extreme regulation in the Takaful insurance market.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 12 no. 3
Type: Research Article
ISSN: 1753-8394

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Article
Publication date: 1 April 2020

Md. Shaharier Alam and Shamim Mahabubul Haque

Seismic vulnerability evaluation of various public structures, especially school buildings, is very crucial for designing hazard mitigation initiatives in seismic prone…

Abstract

Purpose

Seismic vulnerability evaluation of various public structures, especially school buildings, is very crucial for designing hazard mitigation initiatives in seismic prone areas. The city of Mymensingh is at great risk of earthquake because of its geographical location, geological structure and proximity to active faults. The city is famous for its ancient and renowned educational institutes that need to be evaluated for understanding the seismic performance of the building during an earthquake. This study aims to evaluate the seismic vulnerability of educational buildings of Mymensingh city using rapid visual screening (RVS) and index based approach.

Design/methodology/approach

RVS procedure includes field survey and secondary source assessment for evaluating structural vulnerability attributes. Analytical hierarchy process is applied to develop an index focusing on systematic attributes of vulnerability based on expert opinions. Then, a composite vulnerability map is developed combining both structural and systematic vulnerability score providing an equal weight.

Findings

This study evaluates the seismic vulnerability of 458 educational buildings of Mymensingh city and the result shows that 23.14% educational building has high, 46.29% has moderate and 26.86% has moderately low and only 3.71% buildings has the low seismic vulnerability. This study expected to be helpful in resource targeting and prioritizing seismic hazard mitigation activities for education buildings of Mymensingh city.

Originality/value

This study endeavors to present a comprehensive vulnerability assessment method by integrating RVS and index based approach that incorporates both structural and systematic dimensions of vulnerability. The result is expected to be helpful in the formulation of disaster prevention policy for vulnerable educational buildings and development of the earthquake-resistant building codes for the new building construction in Mymensingh city.

Details

International Journal of Disaster Resilience in the Built Environment, vol. 11 no. 3
Type: Research Article
ISSN: 1759-5908

Keywords

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Article
Publication date: 4 March 2019

Nazrul Hazizi Noordin and Salina Kassim

The purpose of this paper is to investigate the empirical linkage between the composition of Shariah Committee and the extent of Shariah governance disclosure in 16…

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Abstract

Purpose

The purpose of this paper is to investigate the empirical linkage between the composition of Shariah Committee and the extent of Shariah governance disclosure in 16 licensed Islamic banks in Malaysia.

Design/methodology/approach

This paper adopted a multiple regression analysis to test the association between the composition of Shariah Committee and the extent of Shariah governance disclosure. A disclosure index was developed to measure the extent of Shariah governance disclosure made by the Islamic banks. Whereas to measure the extent of Shariah governance disclosure, this study used content analysis as a method of coding qualitative information in the annual reports.

Findings

Using 2009 data, the study found a significant association between different compositions of the Shariah Committee in the Malaysian Islamic banks and their Shariah governance disclosure level before the introduction of the Shariah Governance Framework (SGF). However, because of less variation in the composition of Shariah Committee after the introduction of SGF 2010, a weak linkage was found between the composition of Shariah Committee and the extent of Shariah disclosure of Malaysian Islamic banks in 2013.

Research limitations/implications

Findings of this study offer several implications for further improvements of the Malaysian Islamic banking sector in particular, and other Islamic banks globally. As better composition of Shariah Committee in terms of its size, academic background and other relevant expertise would result in effective monitoring system leading to better practices of Shariah disclosure, this finding highlights the relevance and important role of the Shariah Committee in improving voluntary Shariah disclosure level of the Islamic banks. This finding suggests that ample focus has to be channelled in strengthening the composition of Shariah Committee in crafting future development of SGF in Malaysia. It is also suggested that Islamic banks need to give priority in providing more education and training in various areas of expertise to their Shariah Committee members that would result in greater confidence of investors, stakeholders and the society on the information disclosed by the banks.

Originality/value

The novelty of this paper lies in highlighting the importance of different composition of Shariah Committee in determining the extent of voluntary disclosure made on Shariah matters by the Islamic banks.

Details

Journal of Islamic Accounting and Business Research, vol. 10 no. 2
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 10 July 2017

Nazrul Hazizi Noordin, Siti Nurah Haron and Salina Kassim

The purpose of this paper is to contribute to the literature on management of waqf institutions by developing a contingency framework and outlining approaches that can be…

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1707

Abstract

Purpose

The purpose of this paper is to contribute to the literature on management of waqf institutions by developing a contingency framework and outlining approaches that can be followed to instigate a comprehensive performance measurement system (PMS).

Design/methodology/approach

It conducts a thorough and critical review of the literature on relevant performance measurement literature of third sector organizations and waqf institutions.

Findings

The findings suggest that an effective PMS is undoubtedly significant in promoting good governance and ethical management of waqf institutions. However, the current practice of performance measurement in waqf institutions is less standardized and does not cover its entire aspects of performance as a religious as well as a voluntary organization. It is also found that most waqf institutions’ management and researchers primarily rely on financial reporting and economic indicators to report to the stakeholders about the performance of waqf institutions.

Practical implications

The contributions of this paper are twofold. First, the authors develop a contingency framework for assessing performance of waqf institutions. Second, the authors outline eight necessary steps that can serve as guidelines for waqf institutions in designing their own comprehensive PMS.

Originality/value

The novelty of this paper lies in highlighting the feasibility of adopting qualitative approaches by waqf institutions. This study hopes to shed light on a standard measurement system that can be adopted by the waqf institutions to ensure efficiency and sustainability of the waqf institutions, not just in Malaysia but in the Muslim world.

Details

International Journal of Social Economics, vol. 44 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

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Book part
Publication date: 13 February 2001

Abstract

Details

Nonstationary Panels, Panel Cointegration, and Dynamic Panels
Type: Book
ISBN: 978-1-84950-065-4

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