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1 – 10 of over 2000
Article
Publication date: 18 June 2020

Abdulazeez Y.H. Saif-Alyousfi

The purpose of this paper is to examine the impact of the Yemen War on banking services (deposits and loans) at the aggregate and at the level of conventional and Islamic…

Abstract

Purpose

The purpose of this paper is to examine the impact of the Yemen War on banking services (deposits and loans) at the aggregate and at the level of conventional and Islamic banks in GCC countries. The author also tests hypotheses of direct and indirect impacts of the Yemen War on bank services.

Design/methodology/approach

The sample comprises a total of 70 banks (45 conventional and 25 Islamic banks) over the period 2000–2018. The static and dynamic panel generalized methods of moments (GMM) estimation techniques are applied.

Findings

Empirical results indicate that the Yemen War has a significant negative direct impact on deposits and loans of GCC banks. The results lend support for the direct channel hypothesis, but not for the indirect channel hypothesis. The negative direct impact is most prominent on banks in GCC countries that are directly involved in the Yemen War, although the war has an asymmetric effect on conventional and Islamic banks, the former being more vulnerable. The overall conclusion is that the Yemen War exerts an asymmetric impact on the GCC region, across both banks and countries.

Practical implications

These results are a warning to policymakers to be cautious when formulating a strategy for macroeconomic stability.

Originality/value

It is widely recognized that the Yemen War has a significant impact on the economies of the GCC countries. However, the possible impact of the war on GCC bank services has not so far been subjected to robust empirical analysis. This paper therefore seeks to fill this gap by providing an in-depth quantitative analysis of this impact. It distinguishes between direct and indirect channels through which the Yemen War may affect bank services. It is also the first to examine the asymmetric impact of the Yemen War on the GCC region, across both banks (Islamic and conventional banks) and countries (whether or not involved in the war). The study uses both static panel and dynamic panel GMM estimation techniques to analyze the data.

Details

Journal of Economic and Administrative Sciences, vol. 36 no. 4
Type: Research Article
ISSN: 1026-4116

Keywords

Open Access
Article
Publication date: 28 April 2020

Mourad Mroua and Lotfi Trabelsi

This paper aims to investigate simultaneously the causality and the dynamic links between exchange rates and stock market indices. It attempts to identify the short- and…

10915

Abstract

Purpose

This paper aims to investigate simultaneously the causality and the dynamic links between exchange rates and stock market indices. It attempts to identify the short- and long-term effect of the US dollar on major stock market indices of Brazil, Russia, India, China and South-Africa (BRICS) nations.

Design/methodology/approach

This paper applies a new methodology combining the panel generalized method of moments model and the panel auto-regressive distributed lag (ARDL) method to investigate the existence of a causal short-/long-run relationships and dynamic dependence among all stock market returns and exchanges rates changes of BRICS countries.

Findings

Results show that exchange rate changes have a significant effect on the past and the current volatility of the BRICS stock indices. Besides, ARDL estimations reveal that exchange rate movements have a significant effect on short- and long-term stocks market indices of all BRICS countries

Originality/value

The findings have implications for policymakers and market participants who try to manage the exchange rate will have a different dose of intervention if they know that the effects of currency depreciation are different than appreciation. These results have important implications that investors should take into account in frequency-varying exchange rates and stock returns and regulators should consider developing sound policy measures to prevent financial risk.

Details

Journal of Economics, Finance and Administrative Science, vol. 25 no. 50
Type: Research Article
ISSN: 2077-1886

Keywords

Article
Publication date: 18 January 2022

Amsalu Bedemo Beyene

The main objective of this article is to analyze the role of governance quality in influencing the economic growth of 22 selected Sub-Saharan African Countries.

Abstract

Purpose

The main objective of this article is to analyze the role of governance quality in influencing the economic growth of 22 selected Sub-Saharan African Countries.

Design/methodology/approach

The study applied the panel dynamic Generalized Method of Moments (GMM) to analyze the data obtained from the World Bank database over the period from 2002 to 2020.

Findings

The overall finding indicated that the composite governance index has a positive significant effect on the economic growth of the countries; where a unit improvement in the aggregate governance index leads to a 3.05% increase in GDP. The disaggregated result has shown that corruption control and government effectiveness have a negative significant effect on growth performance, whereas, the rule of law and regulatory quality showed a positive significant effect. Political stability and voice and accountability have an insignificant effect on economic growth.

Research limitations/implications

Due to data limitations, this study could not address the whole members of Sub Sahara African Countries and could not see the causal relationship.

Practical implications

The study suggested a strong commitment to the implementation of policy and reform measures on all governance factors. This may add to the need to devise participatory corruption control mechanisms; to closely look at the proper implementation of policies and reforms that constitute the government effectiveness factors, and properly implement the rule of law at all levels of the government with a strong commitment to realizing it so that citizens at all levels can have full confidence in and abide by the rules of society.

Originality/value

Even though there are some studies conducted using conventional methods of panel data analysis such as random effect or fixed effects, this empirical study used more advanced panel dynamic generalized moment of methods to examine the role of improvement in governance quality on economic growth.

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: 24 July 2020

Segun Thompson Bolarinwa and Abiodun Adewale Adegboye

The paper investigates the determinants of capital structure and the speed of adjustment of capital structure decisions of Nigerian firms.

Abstract

Purpose

The paper investigates the determinants of capital structure and the speed of adjustment of capital structure decisions of Nigerian firms.

Design/methodology/approach

The paper adopts three methods: difference GMM, system GMM and stochastic frontier analysis (SFA).

Findings

The empirical results show that firms' efficiency affects the capital structure decisions of Nigerian firms. At the same time, short-term debt has a higher speed of adjustment in the context of Nigerian firms. The roles of other control variables are established in the paper.

Social implications

Nigerian firms should adopt short-term debt in order to achieve their targeted debt levels. Managers of Nigerian firms are also advised to be more efficient in order to attract higher performance.

Originality/value

The paper is the first literature to measure the efficiency of firms using SFA method. Extant studies in the literature have neglected the determinant while four papers that adopt the determinant data envelope analysis (DEA) method. This is also the first study to document the speed of adjustment in capital structure decisions in the context of Nigerian firms.

Details

Journal of Economic and Administrative Sciences, vol. 37 no. 1
Type: Research Article
ISSN: 1026-4116

Keywords

Book part
Publication date: 26 November 2019

Anil Bhuimali, Partha Pratim Sengupta, Sidhartha Sankar Laha and Madhabendra Sinha

This chapter attempts to investigate and analyze the worldwide long-run dynamics among foreign direct investment (FDI) inflow, international trade, and economic growth…

Abstract

This chapter attempts to investigate and analyze the worldwide long-run dynamics among foreign direct investment (FDI) inflow, international trade, and economic growth empirically in the era of globalization. Impact of FDI on economic performances has been a burning topic during the current age. Different theoretical studies viewed both positive and negative impacts of inflow of foreign capital in terms of FDI. We empirically test the relationships among FDI and trade, gross domestic product by using the data for top 20 FDI-hosting countries sourced from UNCTAD in a dynamic panel frame over the period of 1991–2016. The stochastic properties are looked into by carrying out panel data unit root tests developed by Levin, Lin, and Chu (2002) and Im, Pesaran, and Shin (2003). We carry out the generalized method of moments estimates. Empirical findings suggest that inflows of FDI significantly promote economic growth in selected economies.

Details

The Gains and Pains of Financial Integration and Trade Liberalization
Type: Book
ISBN: 978-1-83867-004-7

Keywords

Book part
Publication date: 13 May 2019

Madhabendra Sinha, Anjan Ray Chaudhury and Partha Pratim Sengupta

During the last few decades, there have been significant divergences in the flows of foreign direct investment (FDI) as per decisions taken by multinational companies…

Abstract

During the last few decades, there have been significant divergences in the flows of foreign direct investment (FDI) as per decisions taken by multinational companies (MNCs), and many of the developing nations in the Asia and Pacific region are most remarkable in this regard (UNCTAD, 2015). Apart from various economic factors, some sociopolitical issues have also been identified as influencing the FDI decisions. This study investigates the comovements of the standard measures of terrorist activities and MNCs’ decision on FDI in selected developing countries in the Asia and Pacific region by employing Generalized Method of Moment (GMM) estimation technique on constructing a balanced panel for 1990–2016. Results summarize that FDI inflows are negatively influenced by terrorist activities in the developing economies of the Asia and Pacific region.

Details

The Impact of Global Terrorism on Economic and Political Development
Type: Book
ISBN: 978-1-78769-919-9

Keywords

Article
Publication date: 29 November 2018

Abdulazeez Y.H. Saif-Alyousfi, Asish Saha and Rohani Md-Rus

The purpose of this paper is to investigate and compare the impact of oil and gas prices changes on bank deposits at the aggregate as well as at the level of commercial…

482

Abstract

Purpose

The purpose of this paper is to investigate and compare the impact of oil and gas prices changes on bank deposits at the aggregate as well as at the level of commercial and Islamic banks in Qatar over the period 2000–2016.

Design/methodology/approach

Using the BankScope Database as well as bank-level balance sheet and financial statements data, the authors use one-step system GMM dynamic model to examine and compare the association between oil and gas prices changes with bank deposits in Qatar. The authors also test hypotheses of direct and indirect impacts of oil and gas prices changes on bank deposits.

Findings

The results indicate that oil and gas prices changes have a direct impact on deposits of banks at the aggregate level in Qatar. However, the authors find that oil and gas price changes significantly affect deposits of Qatari commercial banks directly prompting enhanced lending by banks and the consequent business activities in the economy, while their impact on the deposits of Qatari Islamic banks is indirect, i.e. the impact is permeated through the macroeconomic and institutional characteristics of the country that are reinforced by the growing expectations and commercial sentiment of the country. The authors find that significant association between oil price changes and deposit growth during the global financial crisis 2008 has been distorted. However, the authors find that there was a sharp rise in the deposits of Islamic banks during the period of global financial crisis.

Practical implications

The results of this study necessitate policy measures that can counter the effects of changes in oil and gas prices on the effectiveness of bank deposits.

Originality/value

It is widely recognized that oil and gas prices and the level of production are of great importance to the economic development of oil and gas exporting countries. So far, however, no econometric study has been reported in the literature which analyses and compares the impact of oil and gas prices changes on bank deposits of commercial and Islamic banks and also at the aggregate level in any of the oil-exporting economies. Thus, this study provides the first empirical evidence on distinct direct and indirect channels through which oil and gas prices changes may affect bank deposits.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 29 July 2014

Faten Ben Bouheni

This paper aims to find the effects of regulatory and supervisory policies on bank risk-taking. The same regulation and supervision have different effects on bank…

Abstract

Purpose

This paper aims to find the effects of regulatory and supervisory policies on bank risk-taking. The same regulation and supervision have different effects on bank risk-taking depending on influence factors. These factors were considered and a sample of the largest European banks from France, Germany, UK, Italy, Spain and Greece was used over the period 2005-2011.

Design/methodology/approach

In this paper, the author analyses the effects of regulation and supervision on risk-taking. The author uses a sample of the biggest banks from six European countries (France, UK, Germany, Italy, Spain and Greece) over the period 2005-2011. Because the applicable entry of IFRS was in 2005, thus data of European banks are not available before this date. For each country in the sample, the 10 largest banks (defined by total assets) that lend money to firms were identified. The author does not include central banks or postal banks, which generally do not lend money to firms and are described as non-banking institutions (La Porta et al., 2002).

Findings

It was found that restrictions on bank activities, supervisors’ power and capital adequacy decrease risk-taking. Thus, regulation and supervision enhance bank’s stability. While, deposit insurance increases the risk due to its association to moral hazard. Finally, it was found that strengthening regulatory and supervisory framework raises the risk-taking and weakens the stability of European banks.

Originality/value

The author contributes to existing empirical analyses in three ways. First, the existing literature has drawn a lot of attention on US banks. However, the purpose of this paper is to examine the biggest banks of three European leaders (France, Germany and UK) and three more European countries influenced by the recent crisis (Spain, Italy and Greece) over the period 2005-2011. Second, most studies focus mainly on the relationship between regulation and profitability, yet seldom on the relationship between regulation, supervision and risk-taking. The author focuses on this relationship. Third, this study applies the two-step dynamic panel data approach suggested by Blundell and Bond (1998) and also uses dynamic panel generalized method of moments (GMM) method to address potential problems. The two-step GMM estimator that the author uses is generally the most efficient.

Details

Journal of Financial Economic Policy, vol. 6 no. 3
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 19 July 2019

Salman Haider and Javed Ahmad Bhat

Because of growing energy consumption and increasing absolute CO2 emissions, the recent calibrations about the environmental sustainability across the globe have mandated…

Abstract

Purpose

Because of growing energy consumption and increasing absolute CO2 emissions, the recent calibrations about the environmental sustainability across the globe have mandated to achieve the minimal energy consumption through employing energy-efficient technology. This study aims to estimate linkage between simple measure of energy efficiency indicator that is reciprocal of energy intensity and total factor productivity (TFP) in case of Indian paper industry for 21 major states. In addition, the study incorporates the other control variables like labour productivity, capital utilization and structure of paper industry to scrutinize their likely impact on energy efficiency performance of the industry.

Design/methodology/approach

To derive the plausible estimates of TFP, the study applies the much celebrated Levinsohn and Petrin (2003) methodology. Using the regional level data for the period 2001-2013, the study employs instrumental variable-generalized method of moments (GMM-IV) technique to examine the nature of relationship among the variables involved in the analysis.

Findings

An elementary examination of energy intensity shows that not all states are equally energy intensive. States like Goa, Rajasthan, Jharkhand and Tamil Nadu are less energy intensive, whereas Uttar Pradesh, Kerala, Chhattisgarh, Assam and Punjab are most energy-intensive states on the basis of their state averages over the whole study period. The results estimated through GMM-IV show that increasing level of TFP is associated with lower level of energy per unit of output. Along this better skills and capacity utilization are also found to have positive impact on energy efficiency performance of industry. However, the potential heterogeneity within the structure of industry itself is found responsible for its higher energy intensity.

Practical implications

States should ensure and undertake substantial investment projects in the research and development of energy-efficient technology and that targeted allocations could be reinforced for more fruitful results. Factors aiming at improving the labour productivity should be given extra emphasis together with capital deepening and widening, needed for energy conservation and environmental sustainability. Given the dependence of structure of paper industry on the multitude of factors like regional inequality, economic growth, industrial structure and the resource endowment together with the issues of fragmented sizes, poor infrastructure and availability and affordability of raw materials etc., states should actively promote the coordination and cooperation among themselves to reap the benefits of technological advancements through technological spill overs. In addition, owing to their respective state autonomies, state governments should set their own energy saving targets by taking into account the respective potentials and opportunities for the different industries. Despite the requirement of energy-efficient innovations, however, the cons of technological advancements and the legal frameworks on the employment structure and distributional status should be taken care of before their adoption and execution.

Originality/value

To the best of our knowledge, this is the first study that empirically examines the linkage between energy efficiency and TFP in case of Indian paper industry. The application of improved methods like Levinsohn and Petrin (2003) to derive the TFP measure and the use of GMM-IV to account for potential econometric problems like that of endogeneity will again add to the novelty of study.

Details

International Journal of Energy Sector Management, vol. 14 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 27 May 2020

Ajaya Kumar Panda and Swagatika Nanda

The purpose of this paper is to empirically analyze the determinants of capital structure and their long-run equilibrium relationships with firm-specific and macroeconomic…

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Abstract

Purpose

The purpose of this paper is to empirically analyze the determinants of capital structure and their long-run equilibrium relationships with firm-specific and macroeconomic indicators for Indian manufacturing firms.

Design/methodology/approach

The study is conducted using the panel semi-parametric and non-parametric regression models to identify the key determinants of capital structure. Panel cointegration models are also employed for analyzing the long-run equilibrium association of capital structure with its determinants.

Findings

The study finds that each manufacturing sector has unique determinants of capital structure. The debt level is significantly affected by asset tangibility, growth opportunity, effective tax rate, non-debt tax shield, cash flow, profitability, firm size, foreign investment, government borrowing, economic growth, and interest rate. All these firm-specific and macroeconomic variables have strong long-run equilibrium relationship with capital structure as a whole.

Practical Implication of the Study

The study analyzes the determinants of capital structure for eight manufacturing sectors of India, which helps firm managers and policy-makers to identify appropriate factors that maximize firm value. The sector-specific features of firms may lead to a new path with regard to corporate governance and ownership structure to enhance stakeholder's satisfaction.

Originality/value

The use of semi-parametric and non-parametric panel regression models to analyze the determinants of capital structure, and the use of panel cointegration approach to explore the long-run equilibrium relationship between the determinants and its factors are the unique contributions of the present research.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

1 – 10 of over 2000