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Article
Publication date: 31 December 2021

Peterson K. Ozili and Honour Ndah

This paper investigates the effect of financial development on bank profitability. The authors examine whether financial development is an important determinant of bank…

Abstract

Purpose

This paper investigates the effect of financial development on bank profitability. The authors examine whether financial development is an important determinant of bank profitability.

Design/methodology/approach

The ordinary least square and the generalized method of moments regression methods were used to analyze the impact of financial development on the profitability of the Nigerian banking sector.

Findings

The authors find a significant negative relationship between the financial system deposits to GDP ratio and the non-interest income of Nigerian banks. This indicates that higher financial system deposits to GDP depresses the non-interest income of Nigerian banks. The result implies that the larger the size of the Nigerian financial system, the lower the profitability of banks in Nigeria. Also, the authors observe that bank concentration, nonperforming loans, cost efficiency and the level of inflation are significant determinants of the profitability of Nigerian banks.

Practical implications

It is recommended that regulators should establish market-enabling policies that encourage new banks to emerge in the banking industry. The entry of new banks can lead to increase in financial system deposits and credit supply for economic growth. Regulators also need to understand the role of Nigerian banks in promoting financial development and find ways to collaborate with banks towards financial sector development. Another implication of the findings for asset managers is that asset managers will need to take into account the prevailing level of financial development, particularly the size of the financial system, in their asset pricing and investment decisions. This will ensure that investors get value for their investments in Nigeria. The financial implication of the study is that the level of financial development in Nigeria can improve the finance-growth linkages in Nigeria through the efficient allocation of credit and capital to crucial sectors of the Nigerian economy to spur growth in those sectors.

Originality/value

Evidence dealing with how financial development affects the profitability of the banking sector in African countries is scarce in the literature, and is completely absent for Nigeria. This paper addresses this research gap.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 17 October 2023

Hatzav Yoffe, Noam Raanan, Shaked Fried, Pnina Plaut and Yasha Jacob Grobman

This study uses computer-aided design to improve the ecological and environmental sustainability of early-stage landscape designs. Urban expansion on open land and natural…

Abstract

Purpose

This study uses computer-aided design to improve the ecological and environmental sustainability of early-stage landscape designs. Urban expansion on open land and natural habitats has led to a decline in biodiversity and increased climate change impacts, affecting urban inhabitants' quality of life and well-being. While sustainability indicators have been employed to assess the performance of buildings and neighbourhoods, landscape designs' ecological and environmental sustainability has received comparatively less attention, particularly in early-design stages where applying sustainability approaches is impactful.

Design/methodology/approach

The authors propose a computation framework for evaluating key landscape sustainability indicators and providing real-time feedback to designers. The method integrates spatial indicators with widely recognized sustainability rating system credits. A specialized tool was developed for measuring biomass optimization, precipitation management and urban heat mitigation, and a proof-of-concept experiment tested the tool's effectiveness on three Mediterranean neighbourhood-level designs.

Findings

The results show a clear connection between the applied design strategy to the indicator behaviour. This connection enhances the ability to establish sustainability benchmarks for different types of landscape developments using parametric design.

Practical implications

The study allows non-expert designers to measure and embed landscape sustainability early in the design stages, thus lowering the entry level for incorporating biodiversity enhancement and climate mitigation approaches.

Originality/value

This study expands the parametric vocabulary for measuring landscape sustainability by introducing spatial ecosystem services and architectural sustainability indicators on a unified platform, enabling the integration of critical climate and biodiversity-loss solutions earlier in the development process.

Details

Archnet-IJAR: International Journal of Architectural Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-6862

Keywords

Article
Publication date: 12 April 2024

Eric Justice Eduboah

This paper aims to reexamine the relationship between financial openness and financial development in Ghana.

Abstract

Purpose

This paper aims to reexamine the relationship between financial openness and financial development in Ghana.

Design/methodology/approach

The study applied maximum likelihood estimation and autoregressive distributed lag approach and tested Granger causality using quarterly data from 1990:1 to 2020:4.

Findings

This study revealed a long-run equilibrium relationship between financial openness and development, indicating that financial openness is a critical factor in Ghana’s financial development. Therefore, the study recommends with caution that policies aimed at promoting financial openness could be an effective way to encourage sustainable financial development in Ghana, as financial openness alone may not bring the desired outcome.

Research limitations/implications

The study contributes to the existing body of knowledge by providing empirical evidence of the link between financial openness and financial sector development in Ghana. Future research could delve deeper into the mechanisms through which financial openness affects financial development, exploring potential channels and transmission mechanisms.

Practical implications

The findings suggest that policymakers, particularly the Ministry of Finance and the Bank of Ghana, should prioritize policies aimed at promoting financial openness. This includes continued efforts toward financial liberalization and creating an environment conducive to domestic and international financial transactions. Moreover, policies aimed at increasing trade openness, boosting real GDP and maintaining moderate real interest rates are essential for fostering financial sector development.

Social implications

Enhancing financial sector development can have significant implications for society, including increased access to financial services, improved economic opportunities and enhanced overall economic stability. By promoting financial openness and development, policymakers would contribute to poverty reduction, job creation and overall socio-economic development. The study bridges the gap between theory and practice by providing empirical evidence supporting the theoretical proposition that financial openness stimulates financial sector development.

Originality/value

This study fills a crucial gap in the literature on the effects of financial openness on Ghana’s financial sector development. It focuses on Ghana, which liberalized its financial sector in 1988 as part of the overall economic reforms in 1983, and this justifies the starting point of this paper in 1990, as there are no adequate data before 1990. The study uses principal component analysis to construct an index that measures financial development. The study considers the recent financial crises in Ghana in 2017 and underscores the importance of understanding the link between financial openness and financial development, which becomes useful for policymakers and researchers studying financial system development in sub-Saharan Africa which includes Ghana.

Details

Journal of Financial Economic Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 10 April 2024

Madduma Hewage Ruchira Sandeepanie, Prasadini Gamage, Gamage Dinoka Nimali Perera and Thuduwage Lasanthika Sajeewani

The purpose of the paper is to afford a comprehensive conceptualization and operationalization of the construct of talent management through an inclusive exploration of conceptual…

Abstract

Purpose

The purpose of the paper is to afford a comprehensive conceptualization and operationalization of the construct of talent management through an inclusive exploration of conceptual clarifications for existing confusions while developing a complete measuring instrument.

Design/methodology/approach

The archival method was adopted together with a systematic review based on Khan et al.’s (2003) five steps of systematic literature review. The systematic review has encircled published research articles between 1982 and 2023 in the human resource management (HRM) arena. A total of 130 articles were initially scrutinized, and 106 were systematically reviewed to conceptualize, operationalize and explore clarifications for confusions and instrument development for talent management.

Findings

This study explored conceptual clarifications for existing confusions towards talent management while recognizing definitions that come under the main philosophical schools for the underlying concept of talent. A novel practical definition has been established for talent management while recognizing dimensions, and then certain elements. A comprehensive instrument has been developed to measure talent management.

Research limitations/implications

This study is limited to instrument development in measuring talent management; nevertheless, there is an enormous scope for using the instrument to empirically measure talent management through organizational and employees perspectives linked to diverse global contexts in future studies.

Originality/value

The developed comprehensive instrument is a vibrant contribution to future investigations related to empirically measuring talent management associated with organizational and employee perspectives related to diverse global contexts in winning “war for talent.” This study endows a significant input to the whole frame of HRM knowledge as it resolves existing conceptual ambiguities towards talent management while defining and operationalizing it.

Details

Management Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 27 September 2023

Samir Belkhaoui

The aim of this paper is to evaluate empirically the impact of oil price fluctuations on the relationship between banking sector development and economic growth in oil-importing…

Abstract

Purpose

The aim of this paper is to evaluate empirically the impact of oil price fluctuations on the relationship between banking sector development and economic growth in oil-importing MENA countries.

Design/methodology/approach

The study used the newly developed panel autoregressive distributed lagged (ARDL) approach in order to address any potential endogeneity between research variables.

Findings

The empirical results show a unidirectional causality in the long run from oil price to both economic growth and banking sector development for oil-importing countries. Also, banking sector development not only leads directly to economic growth but also can play a moderator role in the oil price—economic growth nexus.

Research limitations/implications

The study has two principal limitations. On the one hand, this study was conducted in a relatively limited sample of countries. On the other hand, the study did not consider others indicators for banking sector development and others macroeconomic variables.

Practical implications

The results found have imperative implications for banks' managers, regulators and researchers. Bank managers should be more concerned with the negative repercussions of oil price fluctuations on the development of their banks. The regulatory authorities must emphasize policies and strategies to further strengthen their banking sector in order to alleviate the negative influence of oil price shocks on economic growth. Researchers focused on finance-growth nexus must take into account the potential influence of oil price shocks.

Originality/value

The developed conceptual model allows examining to what extent the oil price fluctuations might affect the relationship between economic growth and banking sector development. This effect is neither evaluated nor clarified in the relevant literature.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 12 April 2024

Hasan Tekin

This study examines the impact of financial inclusion on the corporate sustainability of banks in both Organization of Islamic Cooperation (OIC) and non-OIC emerging economies…

Abstract

Purpose

This study examines the impact of financial inclusion on the corporate sustainability of banks in both Organization of Islamic Cooperation (OIC) and non-OIC emerging economies, considering the COVID-19 pandemic.

Design/methodology/approach

The research utilizes data from 3,159 bank-years from 2007 to 2021 across 33 emerging markets.

Findings

Empirical findings indicate that firms operating in higher financial inclusion developing countries tend to exhibit higher levels of sustainable development. This positive relationship has become even more pronounced during the COVID-19 pandemic, suggesting the importance of financial inclusion in fostering corporate sustainability, especially in times of economic challenges. Interestingly, while the positive correlation between financial inclusion and sustainable development remains consistent across both OIC and non-OIC countries, firms in OIC countries do not show significant changes during the pandemic.

Practical implications

This observation suggests that the pandemic’s impact on corporate sustainability may vary between the two groups of countries. This study highlights the significance of financial inclusion in promoting corporate sustainability in developing economies. In times of recessions when accessing finance becomes expensive, policymakers in OIC countries should identify firms that adhere to Islamic principles, such as those sensitive to interest rates, and provide them with targeted support. This assistance can enable these companies to compete effectively and achieve their financial sustainability objectives.

Originality/value

There has been no attempt to investigate the effect of financial inclusion and the pandemic on the sustainable development of banks in developing countries.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 22 January 2024

Zohra Dradra

In this study, the author intend to investigate the impacts of renewable energy use and environmental taxation on sustainable development measured by the adjusted net savings…

Abstract

Purpose

In this study, the author intend to investigate the impacts of renewable energy use and environmental taxation on sustainable development measured by the adjusted net savings (ANS).

Design/methodology/approach

This study employs the quantile regression (QR) for a set of 24 Organization for Cooperation and Economic Development (OECD) countries over the period 1994–2018.

Findings

The main empirical findings of estimates show that access to renewable energy and environmental taxation generate positive and significant effects in increasing the ANS for most quantiles. Hence, they are practical tools for achieving sustainable development goals (SDGs).

Practical implications

This study has important implications for governments and policymakers of the OECD countries. Therefore, governments can use subsidies and incentives to promote the adoption of renewable energy sources, energy-efficient technologies and sustainable practices. Similarly, by imposing taxes on pollution and resource use, governments can encourage the adoption of cleaner technologies and practices toward more sustainable behavior.

Originality/value

This paper is based on a novel measure of sustainable development (ANS) and a novel econometric method (QR).

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Article
Publication date: 11 July 2023

Awaisu Adamu Salihi, Haslindar Ibrahim and Dayana Mastura Baharudin

The study aims to examine the association between the sustainable development triangle and real earnings management (REM) and the moderating role of business innovation.

Abstract

Purpose

The study aims to examine the association between the sustainable development triangle and real earnings management (REM) and the moderating role of business innovation.

Design/methodology/approach

The study was based on the quadruple bottom line approach to measuring corporate sustainable development. For the REM, Roychowdhury model is used to identify the practices. The study used panel data using 740 firm-year observations from non-financial listed companies in the Nigerian market from 2011 to 2020, collected from the Nigeria Stock Exchange.

Findings

The study finds a negative influence on the association of economic, environmental, social and governance (EESG) on REM in related party transactions. Thus, by regressing the three different components of REM separately, then EESG will have strongest impact as well. The study suggests a bidirectional association between EESG and REM. Furthermore, the study finds that business innovation strengthens the negative association between EESG and REM. The study concludes that sustainable companies in the Nigerian public market are less liable to practice REM.

Research limitations/implications

The study examines only non-financial listed companies quoted on the Nigeria Stock Exchange, which restricts the generalization of the findings.

Practical implications

The findings of the study should be of immense value to the investors who need comprehensive appraisal of earnings quality to enhance sustainable development strategies for sustainable business innovation among Nigeria firms. Thus, sustainability and innovation can serve as the principles for supporting developing countries impacted by the COVID-19 pandemic and supporting a sustainable development.

Social implications

The study will be of immense value to policymakers, regulators and standard setters who demand for facts insightful of business practices and reporting behaviors for sustainable development.

Originality/value

Existing studies have mainly focused on triple bottom line. This study adds to the existing body of literature on the Quadruple bottom line in an African market. More so, the study investigates the impact of business innovation on the relationship between economic, environmental, social and governance and real earnings management, which was rarely investigated in the prior literature.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Open Access
Article
Publication date: 13 October 2023

Law Chee-Hong

This study investigates the impact of financial development, measured by the ratio of broad money to gross domestic products, on de jure central bank (CB) independence (CBI) in 17…

Abstract

Purpose

This study investigates the impact of financial development, measured by the ratio of broad money to gross domestic products, on de jure central bank (CB) independence (CBI) in 17 countries in the Asia–Pacific region from 1995 to 2014.

Design/methodology/approach

This study uses the feasible generalized least squares (FGLS) approach, which is suitable since the CBI equation suffers from contemporaneous correlation, serial correlation and heteroscedasticity.

Findings

The FGLS results suggest a positive association between CBI and financial market development (FMD). This relationship is confirmed when estimating different indicators of de jure CBI and adopting the panel-corrected standard error estimate. However, the statistical significance of FMD is not supported when the ratio of domestic credit to the private sector to GDP is measured.

Research limitations/implications

It is significant to have a developed financial system to foster a better CBI. Moreover, it is important to measure the influence of financial market players on the operations of a CB.

Originality/value

The financial market in the Asia–Pacific has improved over the years. Hence, the results show the determinants of CBI in the Asia–Pacific, especially the role of FMD.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 16 February 2024

Elvis Achuo, Pilag Kakeu and Simplice Asongu

Despite the global resolves to curtail fossil fuel consumption (FFC) in favour of clean energies, several countries continue to rely on carbon-intensive sources in meeting their…

Abstract

Purpose

Despite the global resolves to curtail fossil fuel consumption (FFC) in favour of clean energies, several countries continue to rely on carbon-intensive sources in meeting their energy demands. Financial constraints and limited knowledge with regards to green energy sources constitute major setbacks to the energy transition process. This study therefore aims to examine the effects of financial development and human capital on energy consumption.

Design/methodology/approach

The empirical analysis is based on the system generalised method of moments (SGMM) for a panel of 134 countries from 1996 to 2019. The SGMM estimates conducted on the basis of three measures of energy consumption, notably fossil fuel, renewable energy as well as total energy consumption (TEC), provide divergent results.

Findings

While financial development significantly reduces FFC, its effect is positive though non-significant with regards to renewable energy consumption. Conversely, financial development has a positive and significant effect on TEC. Moreover, the results reveal that human capital development has an enhancing though non-significant effect on the energy transition process. In addition, the results reveal that resource rents have an enhancing effect on the energy transition process. However, when natural resources rents are disaggregated into various components (oil, coal, mineral, natural gas and forest rents), the effects on energy transition are divergent. Although our findings are consistent when the global panel is split into developed and developing economies, the results are divergent across geographical regions. Contingent on these findings, actionable policy implications are discussed.

Originality/value

The study complements extant literature by assessing nexuses between financial development, human capital and energy transition from a global perspective.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

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