Management
Syed Md. Khaled Rahman; Mohammad Mizenur Rahaman; Nilufar Yeasmin Lima
Abstract
The study sought to explore the effect of Social Capital (SC) on banks’ financial performance and whether this effect is mediated by competitive advantage (CA) or not. Secondary data were collected from banks’ nine years’ annual reports (2014-2022). By stratified sampling method, 20 ...
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The study sought to explore the effect of Social Capital (SC) on banks’ financial performance and whether this effect is mediated by competitive advantage (CA) or not. Secondary data were collected from banks’ nine years’ annual reports (2014-2022). By stratified sampling method, 20 commercial banks in Bangladesh were selected. Findings revealed that the influence of SC on ROA and NIAT is significant and CA mediates between them. For one unit increase in SC, ROA and NIAT will increase by 0.274 and 0.508 units respectively. However, there is no significant effect of SC on ROI. SC has a significant impact on CA also. One unit increase in SC results in a 0.822 unit increase in CA and vice versa. The findings of the study will have implications for policymakers like Bangladesh Bank, government, bankers, depositors, borrowers, and other stakeholders as enrichment of social capital is likely to improve banks’ financial performance through the attainment of CA.
Management
Anthony Egyir Aikins; David Wellington Essaw; John Victor Mensah
Abstract
International best practices require that corporate governance principles are introduced to guide institutions to operate in the best interest of stakeholders. Some local governments in Ghana have not been able to improve the lot of the people although corporate governance principles have been established ...
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International best practices require that corporate governance principles are introduced to guide institutions to operate in the best interest of stakeholders. Some local governments in Ghana have not been able to improve the lot of the people although corporate governance principles have been established in their systems. In an attempt to find the underlying reasons, this study assessed the corporate governance framework of four local governments in Ghana. The in-depth interview design was adopted and a purposive sampling procedure was employed to select 25 key informants who provided primary data for the study. The informants were four Internal Auditors, four Co-ordinating Directors, four members of Audit Committees, three District Auditors, four Regulators from the national level, and six members of the District Planning Co-ordinating Unit of the Assemblies. Data collection methods were key informant interviews and library searches. The interview guide and document review guide were the data collection instruments used. Pattern matching, comparison, content analysis, and interpretation were employed to analyze the data. The study revealed that the components of the corporate governance framework of the selected local governments were the same as that of the standard framework. However, there were lapses in their functioning. The recommendation is that the management bodies and officers responsible for the lapses in the functioning of the components should be sanctioned.
Management
Humayun Humta; Hamayoun Ghafourzay
Abstract
Internal and external finance are the two primary forms of funding for businesses. Internal financing is derived from retained profits, while external financing may come through borrowing money or the issuance of stocks. Businesses utilize it constantly to grow and stay alive, so the choices they make ...
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Internal and external finance are the two primary forms of funding for businesses. Internal financing is derived from retained profits, while external financing may come through borrowing money or the issuance of stocks. Businesses utilize it constantly to grow and stay alive, so the choices they make about finance are crucial. Market timing is vital for determining the appropriate financial structure for a company's success because volatility in market valuation greatly affects the capital structure. Capital structure requires a decision-making tactic that is an art to tackle complex situations. Modigliani and Miller started this ground-breaking study on capital structure in the field of corporate finance in 1958. After that, several theories were developed, but one of those theories was the market timing theory of capital structure, which explains that firms issue new stock when their share price is overvalued and repurchase shares when their share price is undervalued. These price fluctuations of equity will affect corporate financing decisions and ultimately corporate capital structures. The goal of this study is to test the applicability of market timing theory in the context of Canadian firms; thus, the data have been collected from the FINVIZ Stock Screener for the period (2022) and analyzed by a generalized linear model technique through the EViews 13. The research concludes that the market-to-book ratio has a statistically significant negative effect on market leverage as well as book leverage.
Management
Tribhuwan Kumar Bhatt; Xianghua Dang; Shahina Qurban Jan; Muhammad Babar Iqbal
Abstract
Since the internet became freely accessible everywhere in recent years. As banking transactions changed and shifted to online banking, banks paid more attention to how to make the best use of it, reduce operating expenses, and boost profitability. Online banking is a method of doing business that has ...
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Since the internet became freely accessible everywhere in recent years. As banking transactions changed and shifted to online banking, banks paid more attention to how to make the best use of it, reduce operating expenses, and boost profitability. Online banking is a method of doing business that has frameworks that are properly connected with various customer-oriented services offered while also lowering costs and raising profits. The current study sought to investigate the impact of internet banking on Nepali banks' performance in terms of the mediating effect of training and development. It focuses mostly on how training and development affect bank performance in Nepal. Additionally, it emphasizes how crucial online banking can be for improving bank financial performance.The data were selected from 150 respondents of commercial banks located at Khathmandu, Bhaktapur, and Lalitpur. As the primary source of quantitative data for the present research, participants completed a self-administered questionnaire. Additionally, partial least squares structural equation modeling (PLS-SEM) was used to examine the data obtained through the use of questionnaires. The findings suggest a favorable association between online banking and bank performance. According to the findings, training and development significantly impact bank performance. The findings also indicate that the association between online banking and bank performance is mediated by training and development. To meet the intended profitability ratio from online banking, increase customer satisfaction, and produce strong financial performance, management should work to put focus on the training and development process.
Management
Zohre Arefmanesh; Habib Ansari Samani
Abstract
Accounting information plays a crucial role in the decision-making process of lenders. They pay special attention to the income statement and its quality when making decisions. Consequently, financial statements must meet the minimum required standards. Adopting a comprehensive risk management approach ...
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Accounting information plays a crucial role in the decision-making process of lenders. They pay special attention to the income statement and its quality when making decisions. Consequently, financial statements must meet the minimum required standards. Adopting a comprehensive risk management approach can enhance earnings quality, ensuring effective reporting and compliance with laws and regulations. Therefore, this study aims to examine the impact of external financing and the moderating role of risk management on earnings quality. The research hypotheses were analyzed and tested using a multivariate regression model with panel data. The study's statistical population consists of firms listed on the Tehran Stock Exchange. The findings demonstrate a positive and significant relationship between a firm's external financing and earnings quality. This suggests that risk management plays a moderating role in the relationship between external financing activity and earnings quality. External financing and risk management contribute to improving the quality of financial information. Investors can evaluate the reliability of a firm's accounting data based on the level of external financing and enterprise risk management components. Thus, these findings have implications for managers and regulators to enhance the quality of financial information and promote the use of a comprehensive risk management approach to build creditor trust.
Management
Adi Gunanto
Abstract
This research aims to identify the most accurate model for predicting bankruptcy in the banking industry in Indonesia. The three models used in this study are the Altman X-Score, Springate S-Score, and Zmijewski Z-Score models. The population used consists of all banks listed on the Indonesia Stock Exchange ...
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This research aims to identify the most accurate model for predicting bankruptcy in the banking industry in Indonesia. The three models used in this study are the Altman X-Score, Springate S-Score, and Zmijewski Z-Score models. The population used consists of all banks listed on the Indonesia Stock Exchange (IDX). The data used are secondary data in the form of financial reports from 2012 to 2022. The methodology employed includes hypothesis testing using tests for normality, homogeneity, and one-way ANOVA. The research findings indicate that the Z-Score model is the most suitable and accurate model for predicting bankruptcy, with an accuracy rate of 85.53%. The S-Score model achieved an accuracy rate of 14.47%, while the X-Score model did not provide significant accuracy. The implications of the findings are that if the Z-Score model can be used to evaluate the financial health of banks and provide concrete preventive actions before bankruptcy occurs.
Management
Sunday Oseiweh Ogbeide; Sunday Nosa Ugbogbo
Abstract
This study investigated the awareness, perceptions and satisfaction of bank customers over Islamic bank products and services within the Benin metropolis. The specific objectives of the research were to examine the relationship between awareness and Islamic bank products and services; find out if customers’ ...
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This study investigated the awareness, perceptions and satisfaction of bank customers over Islamic bank products and services within the Benin metropolis. The specific objectives of the research were to examine the relationship between awareness and Islamic bank products and services; find out if customers’ perception affects Islamic banks’ products and services; and investigate if there is a relationship between customers’ satisfaction and Islamic bank products and services in Nigeria. Structured questionnaires were used to elicit responses from one hundred respondents. The data collected was analyzed using the ordinary least squares (OLS) multivariate regression estimation method. Findings from the analyses revealed that customers’ awareness and satisfaction exerted negative and non-significant influence on Islamic banking products and services. Customers’ perception about Islamic banking products and services was positive and not significant. The study therefore recommends that operators and regulators of Islamic banks need to pay due attention to public awareness and perception with a view to enhancing patronage of the Islamic banking products and services and enabling the sector to effectively compete with its already well-established conventional counterpart.
Management
Rina Nopianti; Andreas Tri Panudju; Angrian Permana
Abstract
This paper aims to predict stock prices using open, high, low, close variables using artificial neural networks, especially the adaptive fuzzy neural inference system (ANFIS). Each stock has a different pattern and can be predicted if you have complete data. This study is limited by stock data for 2012-2019. ...
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This paper aims to predict stock prices using open, high, low, close variables using artificial neural networks, especially the adaptive fuzzy neural inference system (ANFIS). Each stock has a different pattern and can be predicted if you have complete data. This study is limited by stock data for 2012-2019. The survey was conducted to collect stock data from the Yahoo Finance website. The stock data used is data from 2001-2018. Learning patterns of data patterns using the Adaptive Neural Fuzzy Inference System (ANFIS) were compared with regression analysis, Mean Square Error (MSE) and Mean Prediction Error. The results show that stock price predictions using the Adaptive Neural Fuzzy Inference System (ANFIS) have a small error rate (below 1 percent). The stock price at closing is determined by the open price and the volume of the stock. The value of the highest price of the stock and the lowest value of the stock follows the determined value of the opening price. This paper contributes to existing research in economics, especially stock investment and Financial Technology.
Management
Rajiv Giri
Abstract
This paper examines the impact of COVID-19 lockdown on daily stock returns of banks and financial institutions (BFI) in Nepal. Employing the panel data regression models, this study examines the effect of daily COVID-19 positive cases to the stock returns – during pre-lockdown, lockdown, and after-lockdown ...
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This paper examines the impact of COVID-19 lockdown on daily stock returns of banks and financial institutions (BFI) in Nepal. Employing the panel data regression models, this study examines the effect of daily COVID-19 positive cases to the stock returns – during pre-lockdown, lockdown, and after-lockdown period – of 74 listed firms in Nepal from 2 May 2019 to 25 April 2021. The empirical results confirm that there was no significant impact of daily increased number of COVID-19 positive cases to the stock returns of BFIs in Nepal throughout the entire study period. Furthermore, this study inquires the influence of pandemic period to the individual class of the BFIs sector in NEPSE[1]. It discloses that the commercial banks, development banks and microfinance companies’ stock returns were adversely impacted during the pre-lockdown and lockdown period. However, after-lockdown period had significantly rebounded the overall BFIs stock returns in Nepal with the highest returns earned by microfinance companies and lowest return by commercial banks. [1] Nepal Stock Exchange Limited
Management
Md. Rezaul Karim; Sifat Ara Saba
Abstract
This paper has tried to assess the impact of COVID-19 on stock return in different sectors listed under Dhaka Stock Exchange in Bangladesh during the period from 08 March 2020 to 15 September 2020. To measure the impact of COVID-19 on stock return, daily change in number of confirmed cases and ...
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This paper has tried to assess the impact of COVID-19 on stock return in different sectors listed under Dhaka Stock Exchange in Bangladesh during the period from 08 March 2020 to 15 September 2020. To measure the impact of COVID-19 on stock return, daily change in number of confirmed cases and deaths have been used as independent variables and DSE stock return has been taken as variable of interest. Data were collected from Bangladesh Government’s official portal, DSE archive and annual reports of listed firms. Sample is selected using two stage sampling method which is a probabilistic model. To test the validity of the used model, Pearson’s correlations analysis, Breusch and Pagan’s heteroscedasticity test, White’s homoscedasticity test and Hausman’s fixed random tests are conducted. After testing the validity, fixed effect method of panel data regression model has been used to test the two hypotheses. The result reveals that most of the sectors responded negatively to the growth in COVID-19 confirmed cases. It is also observed that selected sectors reacted more proactively to the growth in number of deaths as compared to the growth in number of confirmed cases. Where banking and textile sectors are the most sufferers to the growth of both confirmed cases and deaths, pharmaceuticals & chemicals industry proved out to be the gainers. The findings will have policy implications for the regulators as well as for the investors to design the optimum portfolio of investment. The study will add new dimensions to the existing literature.
Management
Mohammad Mizenur Rahaman; Md. Zillur Rahman; Syed Towfiq Mahmood Hasan; Mrinmay Roy
Abstract
The main purpose of the study is to discover the impact of working capital indices on the organizational performance of small manufacturing firms in Bangladesh. This study was mainly conducted based on a quantitative research method while data collection was performed by researchers themselves with face-to-face ...
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The main purpose of the study is to discover the impact of working capital indices on the organizational performance of small manufacturing firms in Bangladesh. This study was mainly conducted based on a quantitative research method while data collection was performed by researchers themselves with face-to-face interviews of owners and managers from nine manufacturing sectors. Data were collected from 98 manufacturing small enterprises from four different districts conveniently based on access priority. Data analysis was performed using SPSS, and simple OLS model was developed based on regression analysis to understand the impact level, while correlation and descriptive statistics were produced to understand the scenario and relationship among the variables. This study found that days receivable outstanding (DRO), current ratio (CR), networking capital turnover (NWCT) have a direct impact on the profitability of the firm while days’ inventory outstanding (DIO) is not a determining factor for the financial performance of those firms. This study has practical implications in the field of small manufacturing industries in Bangladesh as well as in developing countries for managing working capital in their firms.
Management
Syed Md. Khaled Rahman; Salman Ahmed
Abstract
Short term asset and liability management is significant in corporate finance literature. This paper investigated on the impacts of working capital management (WCM) on profitability of listed companies of cement and tannery industry in Bangladesh. The data of companies has been collected from Dhaka Stock ...
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Short term asset and liability management is significant in corporate finance literature. This paper investigated on the impacts of working capital management (WCM) on profitability of listed companies of cement and tannery industry in Bangladesh. The data of companies has been collected from Dhaka Stock Exchange over the period 2008-2017. Five firms were chosen from each industry by applying simple random sampling method. Study found that WCM has significant impact on profitability. Result revealed that if average payment period, and cash conversion cycle increase it leads to decrease in all four profitability ratios of cement industry’s firms. Cash conversion cycle has significant negative impact on ROE while current ratio (CR) has significant positive effect on NPM. In contrast, tannery industry impacted by days sales outstanding (DSO) negatively. More inventory turnover has reduced ROE & ROCE while stretching payables reduced ROA & NPM. DSO has significant negative and CR has significant positive impact on NPM of tannery industry’s firms. The managers can increase their companies’ profitability by reducing the days sales outstanding, days inventory turnover, cash conversion cycle and average payment period. The study has practical and policy implications for corporate managers, suppliers, customers, and competitors as enhanced profitability has direct and indirect effect on all stakeholders.
