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Article
Publication date: 7 November 2016

C.A. Saliya and Noel Yahanpath

The purpose of this paper is, first, to show how certain bank capitalists in an Asian country (AC) make credit decisions and what methods they use to justify their…

Abstract

Purpose

The purpose of this paper is, first, to show how certain bank capitalists in an Asian country (AC) make credit decisions and what methods they use to justify their irrational investment decisions, and second, to investigate why they make such unproductive investment decisions.

Design/methodology/approach

The research adopts the case-study methodology, using the theory of petty-bourgeois nationalism as the theoretical framework for data analysis and interpretation.

Findings

The research findings provide evidence to strengthen the theory of petty-bourgeois nationalism. They reveal that bank capitalists in this country do use “nationalism” as a mask to justify their unproductive investment decisions. The data show that such decisions, aimed at import protection, were made to protect their own domains of business by wasting public resources, thus in effect making road-blocks to economic development in AC.

Research limitations/implications

The paper attempts to fill a gap in the literature pertaining to bank lending and its co-integration with a country’s economic development.

Social implications

This study argues that such irrational unproductive investments are made under the guise of nationalism and/or patriotism, motivated by egoistic bank owners to protect their spheres of business.

Originality/value

The research in this paper is original because it is the first critical analysis of a case from an AC on petty-bourgeois nationalism.

Details

Qualitative Research in Financial Markets, vol. 8 no. 4
Type: Research Article
ISSN: 1755-4179

Keywords

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Article
Publication date: 19 June 2019

Krishna Reddy, Muhammad Qamar and Noel Yahanpath

The purpose of this paper is to study whether mergers and acquisitions (M&As) create value in Indian and Chinese markets.

Abstract

Purpose

The purpose of this paper is to study whether mergers and acquisitions (M&As) create value in Indian and Chinese markets.

Design/methodology/approach

The authors study abnormal returns (AR) created by the acquiring firms in Indian and Chinese markets relating to M&A announcements, using the following three different statistical methods: i.e. mean, market and ordinary least squares adjusted return models.

Findings

On average, M&A announcements do not create value for the firms in Chinese and Indian economies. For the mean model, M&As create value for Chinese firms, whereas for the Indian firms no such value is created for the same event windows. The regression results showed that debt has a positive impact on the AR and cumulative average abnormal returns at 1, 5 and 10 per cent significance levels, respectively.

Research limitations/implications

This study suggests increasing the sample size and period and using the instrumental variables regression to ensure the estimator’s impartiality, consistency and efficiency. With the investigative period surrounding a financial crisis, the estimators may have omitted bias.

Originality/value

Multiple methods used in this paper made it possible to capture the level of method variance in the AR, which is unusual in the Chinese and Indian context. Hence, the current study provides local knowledge and further strengthens the literature about M&As. The authors also regress AR with firm-specific factors, the consideration of which is scarce in the previous literature. Furthermore, much of what the authors know about M&A is relevant to developed economies.

Details

Studies in Economics and Finance, vol. 36 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 9 November 2015

Syrus M. Islam and Noel Yahanpath

– The paper aims to evaluate the role played by a recent banking and macro-prudential regime in addressing the financial crisis in New Zealand (NZ).

Abstract

Purpose

The paper aims to evaluate the role played by a recent banking and macro-prudential regime in addressing the financial crisis in New Zealand (NZ).

Design/methodology/approach

The basic methodology used in this paper is the “documentary research method”. For this study data have been collected from various published sources.

Findings

We find that the NZ government is one of the first few countries to implement Basel III to ensure the robustness of its banking sector while calibrating it to the unique needs of the economy and is in the process of phasing in several macro-prudential instruments (e.g. countercyclical capital buffer ore funding ratio sectoral capital requirement and loan-to-value ratio) to smooth the credit cycle of the economy. However implementing different requirements of a new policy has some challenges.

Research limitations/implications

Further research may be carried out to investigate the policy responses of the government from corporate governance and other regulatory perspectives.

Practical implications

This study identifies the effectiveness as well as some challenges faced when implementing different requirements of the new policy that may facilitate the policy makers to take appropriate action as required.

Originality/value

This study provides a unique insight into the post-GFC scenario with regard to the government policy response in the banking sector and macro-prudential system that may provide the world with a financial-system warrant of fitness. It is one of the very few studies that showcase a global perspective and to our knowledge it is the first of its kind in NZ in the post-global financial crisis period.

Details

Journal of Financial Regulation and Compliance, vol. 23 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

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Article
Publication date: 4 November 2014

Noel Yahanpath and Mahbubul Islam

The purpose of this study is to explore whether the present measures being taken by the New Zealand (NZ) government are strengthening its non-banking sector effectively to…

Abstract

Purpose

The purpose of this study is to explore whether the present measures being taken by the New Zealand (NZ) government are strengthening its non-banking sector effectively to address the recent financial crisis and ensure better financial stability to the economy.

Design/methodology/approach

The basic methodology used in this paper is the “documentary research method”. For this study, data has been collected from various published sources; e.g. The Bulletin, the Financial Stability Report and other publications of the Reserve Bank of NZ, publications by Statistics NZ and a number of NZ government Ministries, and some newspapers and magazines, etc.

Findings

We find that the NZ government is revamping the non-banking sector by introducing a prudential regime. However, we also find some gaps in the existing regulatory systems that need to be addressed to ensure soundness in the total system.

Research limitations/implications

The basic limitation of documentary research will be applicable to this study. Further research may be carried out to investigate the policy responses of government from banking, corporate governance and other regulatory perspectives.

Practical implications

Our study identifies some gaps in current policy responses along with some suggestions for the future that may be taken into consideration by the respective policy-makers to further strengthen the support provided by policy responses to financial crises.

Originality/value

Our study provides a unique insight into the evaluation of post-GFC policy response and its effectiveness with regard to non-banking sector and, to our knowledge, the first of its kind in NZ in the post-global financial crisis period.

Details

Journal of Financial Regulation and Compliance, vol. 22 no. 4
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 12 April 2011

Noel Yahanpath and Tintu Joseph

In the aftermath of the global financial crisis (GFC) governments lost confidence in market fundamentalism and realised the inadequacies of regulatory measures. The…

Abstract

Purpose

In the aftermath of the global financial crisis (GFC) governments lost confidence in market fundamentalism and realised the inadequacies of regulatory measures. The purpose of this paper is to outline the proximate causes of the financial crisis of 2007‐2009 and to investigate the role of the shareholder wealth maximization (SWM) objective in the GFC.

Design/methodology/approach

The methodological procedure used in this paper is based on the historical case‐study approach. Case reviews of individuals and world‐level role models of the financial crisis have been cited in this paper. From this aggregated material, the paper examines the side effects of the SWM objective in order to develop the argument that the SWM objective played a role in the present crisis.

Findings

The case studies revealed that unethical behaviour, agency issues, CEO compensation, creative accounting and risk shifting are some of the side effects of SWM. These cases indicate that the assumptions on which SWM are based are questionable. Further, it can be argued that the root cause of the GFC is excessive greed and the single‐minded pursuit of SWM.

Originality/value

Though many studies have attempted to identify the proximate causes of the GFC, this paper is novel in highlighting the impact of the SWM objective function.

Details

Qualitative Research in Financial Markets, vol. 3 no. 1
Type: Research Article
ISSN: 1755-4179

Keywords

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Article
Publication date: 12 April 2013

Noel Yahanpath, Mark Neal and Shane McCormack

The purpose of this paper is to explore the nature and significance of flexibility in decisions about education and training options. This is done through an examination…

Abstract

Purpose

The purpose of this paper is to explore the nature and significance of flexibility in decisions about education and training options. This is done through an examination of the relevance of real options valuation (ROV) to our understanding of educational and training choices. Through this examination, the paper aims to contribute to the debate about how we can better advise and support people making such decisions.

Design/methodology/approach

The research involved three overlapping stages: a critical examination of the theoretical work on flexibility in decisions; a review of the literature on the role and significance of flexibility in education and training decisions; and an application of the lessons of ROV to the analysis of decisions about education, training and careers.

Findings

The analysis of the theoretical work on flexibility alongside the review of the literature on education and training decision‐making, demonstrated that there was little current application of theory to the analysis of such choices. Reviewing the literature, it was discovered that ROV held significant lessons for the analysis of education and training decisions, and important practical implications for the support and guidance of people making these choices.

Originality/value

This is the first study to apply the principles of ROV to educational and training choices.

Details

Education + Training, vol. 55 no. 3
Type: Research Article
ISSN: 0040-0912

Keywords

Content available
Article
Publication date: 12 April 2011

Bruce Burton

Abstract

Details

Qualitative Research in Financial Markets, vol. 3 no. 1
Type: Research Article
ISSN: 1755-4179

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Article
Publication date: 1 August 2016

Humayun Kabir, Li Su and Asheq Rahman

The setting of private finance companies that failed in New Zealand during 2006-2012 was characterized by weaker corporate governance and enforcement of securities law…

Abstract

Purpose

The setting of private finance companies that failed in New Zealand during 2006-2012 was characterized by weaker corporate governance and enforcement of securities law. This paper aims to explore audit failure in this setting and examine whether auditors erred in their audits of the failed finance companies and whether the audit failure rate of Big N auditors was different from that of non-Big N auditors.

Design/methodology/approach

This paper adopts the archival research method and uses three sets of evidence to assess audit failure – the frequency of going concern opinion (GCO) prior to failure, misstatements in the last audited financial statements, and the violation of the Code of Ethics.

Findings

The study finds that only 41 per cent of the sample companies received the GCO in their last audit prior to failure and provides evidence of material misstatements in the financial statements of a number of failed finance companies that received clean audit opinions prior to failure and breaches of the Code of Ethics by a number of auditors. These results strongly indicate audit failure for a number of failed finance companies. The audit failure rate, however, appears less for Big N auditors than for non-Big N auditors.

Practical implications

The study draws attention of the stock market regulator and the accounting profession to an area, the audit of private finance companies, that needs better quality audits.

Originality/value

This paper provides systematic evidence of audit failure in failed finance companies in New Zealand. It also furnishes preliminary evidence of Big N auditors compensating for weaker corporate governance.

Details

Pacific Accounting Review, vol. 28 no. 3
Type: Research Article
ISSN: 0114-0582

Keywords

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