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Article
Publication date: 23 April 2020

Muntazir Hussain, Usman Bashir and Ahmad Raza Bilal

The purpose of this paper is to investigate the risk-taking channel of monetary policy transmission in the Chinese banking industry. This study also investigates the role of…

Abstract

Purpose

The purpose of this paper is to investigate the risk-taking channel of monetary policy transmission in the Chinese banking industry. This study also investigates the role of various other factors in the risk-taking channel.

Design/methodology/approach

This study used panel data from 2000 to 2012, and a dynamic panel model (Difference GMM) was applied.

Findings

The empirical findings of this paper suggest that loose monetary policy rates increase bank risk-taking. Unlike previous studies, the results of this paper suggest that the bank-specific factors (size, liquidity and capitalization) do not significantly affect the risk-taking channel. However, the market structure does have a stabilizing effect on monetary policy transmission and the risk-taking channel. Higher market power weakens the risk-taking channel of monetary policy transmission.

Practical implications

Of significance to the policymakers' point of view is that loose monetary policy induces banks to take excessive risks. However, such effects can be mitigated by encouraging a proper level of market power in banking markets.

Originality/value

This study investigated the risk-taking channel of monetary policy transmission for the Chinese banking industry. Due to the unique features of the People's Bank of China (PBC, Central Bank of China) policy, this study also contributes to the literature by comparing price-based and quantity-based monetary policy tools and their effectiveness in financial stability and monetary policy transmission. Furthermore, the role of market structure is also investigated in the risk-taking channel.

Details

International Journal of Emerging Markets, vol. 16 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 5 November 2020

Shoaib Khan, Usman Bashir and Md. Saiful Islam

The purpose of this study is to investigate the most important factors that affect the capital structure of commercial banks in the Kingdom of Saudi Arabia.

1333

Abstract

Purpose

The purpose of this study is to investigate the most important factors that affect the capital structure of commercial banks in the Kingdom of Saudi Arabia.

Design/methodology/approach

This study uses annual data of 11 Saudi commercial, national banks listed on the tadawul Saudi stock exchange for the period 2010–2017. Data was collected from the banks financial statements, tadawul annual publications and Saudi Arabian Monetary Authority. By constructing a balanced panel, this study uses pooled ordinary least squares regression along with fixed effects and random effects to examine the relationship between the bank’s book leverage as the dependent variable and bank-specific explanatory variables that include profitability, tangibility, earnings volatility, growth opportunities and bank size, while controlling for macroeconomic conditions.

Findings

The findings of this study suggest that banks in Saudi Arabia are highly leveraged, endorsing the fact that the nature of banks’ business is different from non-banking firms. Earnings volatility, growth and bank size show positive and significant relations with book leverage. Profitability and tangibility are negatively related to the book leverage. Empirically, the explanatory variables profitability, earnings volatility, tangibility, growth and bank size have material effects on the capital structure decisions of Saudi commercial banks. In summary, the determinants of capital structure for Saudi banks are the same as those of non-financial firms but are distinctive in nature.

Research limitations/implications

An extensive study on all the banks operating in Gulf Cooperation Council (GCC) countries is suggested.

Practical implications

The findings have practical implications for bank managers, which will help them to identify the bank-specific factors affecting the capital structure and choose the values enhancing optimal capital structure. The results of this study can assist regulatory agencies to formulate an effective regulatory framework. Moreover, the findings lay a foundation for the development of financial sector under the umbrella of the Vision 2030 program in the Kingdom.

Originality/value

To the best of the authors’ knowledge, this is the first study to explore the factors affecting the capital structure choices of commercial banks operating in the Kingdom of Saudi Arabia. Moreover, the findings of the study would prove useful in detailed studies of capital structure in the GCC countries as well.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 9 May 2024

Muntazir Hussain, Ramiz Rehman and Usman Bashir

This study investigates the relationship between female CEOs and SMEs’ financing decisions. The study also examined the moderating role of ownership structure (female, foreign…

Abstract

Purpose

This study investigates the relationship between female CEOs and SMEs’ financing decisions. The study also examined the moderating role of ownership structure (female, foreign, and state ownership) in female CEO-SMEs’ financing decisions.

Design/methodology/approach

The study has applied Generalized Least Square (GLS) and Binomial Logistic Regression. The study has used firm-level data from 2,700 Small and Medium Enterprises (SMEs) in the Chinese economy.

Findings

The results suggest that female CEOs use debt financing. However, the financing decision of female CEOs varies if we account for female ownership, foreign ownership, state ownership, firm association with big firms, and the industry in which the firm operates. This study also provides robust evidence that female CEOs utilize debt financing under certain conditions and that female CEOs prefer long-term debt financing to short-term debt financing when considering debt maturity choices.

Originality/value

Recent studies report a negative relationship between female CEOs and financing decisions based on the rationale that females are risk-averse and choose less risky financing compared to their male counterparts. This study posits new evidence that female CEO financing decisions are not always risk averse if we consider female ownership, foreign ownership, state ownership, firm association with big firms, and the industry in which the firm operates. Thus, we contribute to the corporate governance literature, and this study implies a corporate financing policy.

Details

Asia-Pacific Journal of Business Administration, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-4323

Keywords

Open Access
Article
Publication date: 29 January 2024

Clement Olalekan Olaniyi and Nicholas M. Odhiambo

This study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in…

Abstract

Purpose

This study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in selected sub-Saharan African (SSA) countries from 1981 to 2019.

Design/methodology/approach

To account for cross-sectional dependence, heterogeneity and policy variations across countries in the inflation-poverty reduction causal nexus, this study uses robust Hatemi-J data decomposition procedures and a battery of second-generation techniques. These techniques include cross-sectional dependency tests, panel unit root tests, slope homogeneity tests and the Dumitrescu-Hurlin panel Granger non-causality approach.

Findings

Unlike existing studies, the panel and country-specific findings exhibit several dimensions of asymmetric causality in the inflation-poverty nexus. Positive inflationary shocks Granger-causes poverty reduction through investment and employment opportunities that benefit the impoverished in SSA. These findings align with country-specific analyses of Botswana, Cameroon, Gabon, Mauritania, South Africa and Togo. Also, a decline in poverty causes inflation to increase in the Congo Republic, Madagascar, Nigeria, Senegal and Togo. All panel and country-specific analyses reveal at least one dimension of asymmetric causality or another.

Practical implications

All stakeholders and policymakers must pay adequate attention to issues of asymmetric structures, nonlinearities and country-to-country policy variations to address country-specific issues and the socioeconomic problems in the probable causal nexus between the high incidence of extreme poverty and double-digit inflation rates in most SSA countries.

Originality/value

Studies on the inflation-poverty nexus are not uncommon in economic literature. Most existing studies focus on inflation’s effect on poverty. Existing studies that examine the inflation-poverty causal relationship covertly assume no asymmetric structure and nonlinearity. Also, the issues of cross-sectional dependence and heterogeneity are unexplored in the causal link in existing studies. All panel studies covertly impose homogeneous policies on countries in the causality. This study relaxes this supposition by allowing policies to vary across countries in the panel framework. Thus, this study makes three-dimensional contributions to increasing understanding of the inflation-poverty nexus.

Details

International Trade, Politics and Development, vol. 8 no. 1
Type: Research Article
ISSN: 2586-3932

Keywords

Article
Publication date: 9 October 2017

Rabia Mushtaq, Usman Raja and Mohammad Bashir Khan

The purpose of this paper is to explore how the relationship between job scope and in-role performance is contingent upon the level of social support (i.e. supervisor support…

Abstract

Purpose

The purpose of this paper is to explore how the relationship between job scope and in-role performance is contingent upon the level of social support (i.e. supervisor support) received in the workplace.

Design/methodology/approach

A total of 640 questionnaires were distributed to employees of Pakistani companies, yielding 328 useable responses for analysis. Regression analysis was used to test for both hypotheses.

Findings

The results support the role of supervisor support as a moderator in the relationship between in-role performance, a dimension of job performance and job scope. The findings show that a higher job scope would facilitate higher job performance from employees who receive high levels of supervisor support.

Practical implications

The results provide useful insights for managers and consultants, especially HR professionals involved in job design and redesign. Organizations that encourage high levels of social support can help employees improve their job performance as they foster an environment where employees can get direct assistance and advice from their supervisors.

Originality/value

This paper makes three key contributions to the literature on job design. First, this inquiry shows that a strong link does exist between job scope and job performance; previous studies have failed to find a strong relationship. Second, it highlights how social context, especially in highly challenging work settings, can shape employees’ proficiencies and behaviors. Third, this paper offers a novel perspective in job design research by incorporating a contextual moderator (i.e. supervisor support).

Details

Journal of Management Development, vol. 36 no. 9
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 29 August 2023

Abbas Ali Chandio, Uzma Bashir, Waqar Akram, Muhammad Usman, Munir Ahmad and Yuansheng Jiang

This article investigates the long-run impact of remittance inflows on agricultural productivity (AGP) in emerging Asian economies (Bangladesh, Sri Lanka, Malaysia, India, Nepal…

Abstract

Purpose

This article investigates the long-run impact of remittance inflows on agricultural productivity (AGP) in emerging Asian economies (Bangladesh, Sri Lanka, Malaysia, India, Nepal, Philippines, Pakistan, and Vietnam), employing a panel dataset from 2000 to 2018.

Design/methodology/approach

This study initially applies cross-sectional dependence (CSD), second-generation unit root, Pedroni, and Westerlund panel co-integration techniques. Next, it uses the augmented mean group (AMG) and common correlated effect mean group (CCEMG) methods to investigate the long-term impact of remittance inflows on AGP while controlling for several other important determinants of agricultural growth, such as cultivated area, fertilizers, temperature change, credit, and labor force.

Findings

The empirical findings are as follows: The results first revealed the existence of CSD and long-term co-integration between AGP and its determinants. Second, remittance inflows significantly boosted AGP, indicating that remittance inflows played a crucial role in improving AGP. Third, global warming (changes in temperature) negatively impacts AGP. Finally, additional critical elements, for instance, cultivated area, fertilizers, credit, and labor force, positively affect AGP.

Research limitations/implications

This study suggests that policymakers of emerging Asian economies should develop an exclusive remittance-receiving system and introduce remittance investment products to utilize foreign funds and mitigate agricultural production risks effectively.

Originality/value

This is the first empirical examination of the long-term impact of remittance flows on agricultural output in emerging Asian economies. This study utilized robust estimation methods for panel data sets, such as the Pedroni, Westerlund, AMG, and CCEMG tests.

Details

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

Keywords

Article
Publication date: 16 March 2021

Erum Ishaq, Usman Raja, Dave Bouckenooghe and Sajid Bashir

Using signaling theory and the literature on psychological contracts, the authors investigate how leaders' personalities shape their followers' perceptions of the type of…

Abstract

Purpose

Using signaling theory and the literature on psychological contracts, the authors investigate how leaders' personalities shape their followers' perceptions of the type of psychological contract formed. They also suggest that leaders' personalities impact their followers' perceived contract breach. Furthermore, the authors propose that power distance orientation in organizations acts as an important boundary condition that enhances or exacerbates the relationships between personality and contract type and personality and perceived breach.

Design/methodology/approach

Data were collected through multiple sources in Pakistan from 456 employees employed in 102 bank branches. Multilevel moderated path analyses provided reasonably good support for our hypotheses.

Findings

The leaders' personalities impacted the relational contracts of their followers in the cases of extraversion and agreeableness, whereas neuroticism had a significant relationship with the followers' formation of transactional contracts. Similarly, agreeableness, neuroticism and conscientiousness had significant relationships with perceived breach. Finally, the power distance of the followers aggregated at a group level moderated the personality-contract type and personality-perceived breach relationships.

Research limitations/implications

This research advances understanding of psychological contracts in organizations. More specifically, it shows that the personality of leader would have profound impact on the type of contract their employees form and the likelihood that would perceive the breach of contract.

Originality/value

This research extends existing personality-psychological contract literature by examining the role of leaders' personalities in signaling to employees the type of contract that is formed and the perception of its breach. The role of power distance organizational culture as a signaling environment is also considered.

Details

Personnel Review, vol. 51 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 8 May 2024

Rakotoarisoa Maminirina Fenitra, Tengku Ezni Balqiah, Rifelly Dewi Astuti, Hendro Prabowo and Sri Rahayu Hijrah Hati

This paper aims to examine existing literature on halal food consumption from the perspective of consumer behaviour research. It identifies progress, current state and gaps and…

Abstract

Purpose

This paper aims to examine existing literature on halal food consumption from the perspective of consumer behaviour research. It identifies progress, current state and gaps and provides direction for future research to advance the field.

Design/methodology/approach

This paper reviewed papers from 2007 to 2023 using Scopus and WOS databases. The review used the Theories–Context–Characteristics–Methods (TCCM) framework and followed the scientific procedures and rationales for systematic literature reviews (SPAR-4-SLR) protocol.

Findings

The review summarises the methods, theory and approaches used in the topic and presents key findings and a proposed framework. It can guide future researchers in developing their models, making it a valuable starting point for future research. Despite the existence of SRL in halal food to the best of the authors’ knowledge, this work is the first review that proposes a model for halal food in consumer behaviour.

Originality/value

This review provides a twofold contribution. First, this review's theoretical contribution is advancing consumer behaviour literature on halal food. Second, this work's practical contribution is to enrich practitioners' understanding of the antecedents of consumer behaviour regarding halal food. This is the first review proposing a consumer behaviour model for Halal food. It makes a theoretical contribution to understanding consumer behaviour on Halal food and provides practical insights for practitioners.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 30 March 2022

Muhammad Ashraf Fauzi

This study aims to review relevant studies concerning consumer purchase of halal-certified products. A total of 35 studies related to the consumer purchasing behavior of…

1594

Abstract

Purpose

This study aims to review relevant studies concerning consumer purchase of halal-certified products. A total of 35 studies related to the consumer purchasing behavior of halal-certified products in top-tier journals have been identified according to the recommended systematic literature review methodology.

Design/methodology/approach

A systematic literature review approach was implemented to examine, summarize and finally interpret the relevant research stream pertaining to consumer purchase of halal-certified products.

Findings

There are five research streams extracted from this systematic review, halal study context, theories adapted, covariance-based-structural equation modeling (SEM) vs partial least square-SEM, Muslim vs nonMuslim consumer and role of religiosity. Despite the growing interest in the quantitative approach in consumer purchase behavior in halal-certified products, scholars in halal consumer studies must have a greater extent of work. These include incorporating diverse theories in the framework, an advanced SEM approach, and relevant determinants to capture consumer purchasing of halal-certified products in the highly anticipated and profitable Muslim market.

Research limitations/implications

Findings would help researchers in halal studies to consider and contemplate critical issues, according to the research stream presented in this review.

Originality/value

To the best of the authors’ knowledge, this study is the first review of quantitative studies on consumer purchases of halal-certified products.

Details

Journal of Islamic Marketing, vol. 14 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 6 August 2019

Asif Hamid Charag, Asif Iqbal Fazili and Irfan Bashir

The purpose of this study is to examine the factors that influence the consumer intention to adopt Islamic banking.

1047

Abstract

Purpose

The purpose of this study is to examine the factors that influence the consumer intention to adopt Islamic banking.

Design/methodology/approach

The study extends the theory of reasoned action (TRA) by incorporating additional variables such as government support, perceived risk, perceived image, religiosity and culture. A research instrument adapted from previous studies is administered online on a sample of 310 respondents. The data collected are subjected to exploratory factor analysis followed by structural equation modeling using SPSS and analysis of a moment structures (22.0 Version).

Findings

The results of the study reveal that consumer intention to use Islamic banking is collectively determined by attitude, religiosity, culture, government support and perceived risk. It reflects that attitude and religiosity are the major predictors of a consumer’s intention followed by government support. Furthermore, results indicate that a consumer’s attitude toward Islamic banking is determined by social influence, government support, religiosity and perceived risk. Also, it is found that culture and perceived image have no significant effect on a consumer’s attitude toward adoption of Islamic banking. Further, the results indicate that attitude mediates the effect of religiosity, perceived risk, government support and culture on a consumer’s intention to use Islamic banking.

Research limitations/implications

The success of Islamic banking ultimately depends on consumer readiness and adoption of it. This study provides significant insights into various aspects of consumer attitude and intention toward Islamic banking adoption. The results provide vital inputs to policymakers and practitioners in offering and promoting Islamic banking. Also, the knowledge and understanding of key consumer specific factors can be used by banks in framing strategies for positioning and targeting Islamic banking products. The study is subjected to certain limitations such as – the study accounts only for limited factors and does not provide for factors such as pricing, behavioral control and Islamicity of the product. Second, this study is limited to the geographic area of Kashmir. Third, the study design is cross-sectional is nature.

Originality/value

Essentially, this study is a pioneering effort in applying an integrated TRA model to determine consumer intention to use Islamic banking in Kashmir. Furthermore, the current study examines the relationship between additional variables simultaneously within the framework of TRA. The study also explores the effect of religiosity and culture on consumer’s attitude and intention, which has remained largely unexplored in the context of Islamic banking.

Details

Journal of Islamic Marketing, vol. 11 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

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