Bank regulatory capital and liquidity creation: evidence from BRICS countries

2018 ◽  
Vol 13 (1) ◽  
pp. 218-230
Author(s):  
Muhammad Umar ◽  
Gang Sun ◽  
Khurram Shahzad ◽  
Zia-ur-Rehman Rao
Keyword(s):  
Emerging Economies ◽  
Risk Taking ◽  
Design Methodology ◽  
Econometric Model ◽  
Bank Capital ◽  
Least Squares Regression ◽  
Regulatory Capital ◽  
Content Type ◽  
Brics Countries ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between bank regulatory capital and liquidity creation in banks of BIRCS countries. Design/methodology/approach Data from all publicly listed banks of BRICS nations for the period 2003-2014 have been collected and analyzed. Two-stage least-squares regression has been used to control endogeneity. The econometric model includes different control variables that have been selected based on the extant literature. Findings Increase in bank capital negatively affects bank liquidity creation which implies that “financial fragility-crowding out” hypothesis holds for banks of BRICS countries. Originality/value This study provides the evidence of the inverse relationship between bank regulatory capital and liquidity creation from emerging economies. The findings show that there is a trade-off between curtailing bank risk taking and liquidity creation. Therefore, the regulators must formulate policies to strike a balance between the two.

New trends in intellectual capital reporting

2018 ◽  
Vol 19 (4) ◽  
pp. 814-835 ◽  
Author(s):  
Francesca Manes Rossi ◽  
Giuseppe Nicolò ◽  
Paolo Tartaglia Polcini
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Information Needs ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
University System ◽  
Content Type ◽  
Explanatory Factors ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to explore a new way to disclose intellectual capital (IC) in universities through their websites. Going beyond traditional tools used for intellectual capital disclosure (ICD), this study aims at identifying possible determinants of ICD via the web. Design/methodology/approach This paper analyses the institutional websites of a sample of Italian universities adapting the theoretical framework developed by Low et al. (2015) to the peculiarities of the Italian university system. Moreover, the relationship between certain explanatory factors identified in previous research and the extent of online ICD represented by two disclosure indexes was tested through an ordinary least squares regression model. Findings The analysis reveals the extensive use of ICD via websites, especially regarding human and internal capital, while the disclosure of external capital through this means is still limited. Internationality and online visibility both positively affect the extent of a university’s ICD. Research limitations/implications The paper represents the first study investigating online ICD and its determinants in universities, contributing new knowledge to help answer the how and what of the matter. Practical implications The results can serve as encouragement to university managers to enhance online ICD to meet the information needs of a wider audience. Originality/value This is the first study to provide evidence about online ICD in universities and to reveal some of the possible determinants to improve this disclosure.

Industry risk taking and risk-taking strategy of born-global firms

2019 ◽  
Vol 12 (1) ◽  
pp. 1-21
Author(s):  
Jing Huang ◽  
Linyu Liu ◽  
Ren Lu
Keyword(s):  
Risk Taking ◽  
Design Methodology ◽  
Fixed Effect Model ◽  
Born Global ◽  
Content Type ◽  
Related Variety ◽  
Effect Model ◽  
Industry Risk ◽  
The Relationship ◽  
Born Global Firms

Purpose The purpose of this paper is to study the relationship between industry risk taking and risk-taking strategy of born-global firms (BGs), and how industry-related variety moderates that relationship. Design/methodology/approach The authors apply fixed effect model to analyze 26,499 observations on 10,508 BGs in 276 Chinese cities. Findings The authors find that industry risk taking positively influences risk-taking strategy of BGs, and industry-related variety positively moderates such relationship. Originality/value The findings reveal how BGs formulate their risk-taking strategy given the dilemma of risk nature and hurdles in firm establishment and rapid internationalization. This paper extends understanding on BGs’ strategy making, supplements the theoretical framework on BGs with an integrated viewpoint containing “regional–industry–firm” levels and contributes to the industry variety argument.

“Doing good” while serving customers

2017 ◽  
Vol 19 (2) ◽  
pp. 105-124 ◽  
Author(s):  
Philip T. Roundy
Keyword(s):  
Emerging Economies ◽  
Social Entrepreneurship ◽  
Design Methodology ◽  
Business Models ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Stakeholder Groups ◽  
Challenges And Opportunities ◽  
The Relationship ◽  
Practical Implications

Purpose Social entrepreneurship represents an unconventional, but increasingly prevalent, activity in developed and emerging economies. Social entrepreneurs devise novel business models that blend business and social missions with the aim of (co-)producing value with two primary stakeholder groups, beneficiaries and customers. Although interactions between social entrepreneurs and their beneficiaries are well-studied, the relationship between social ventures and consumers has received almost no extended attention. Design/methodology/approach Using a qualitative, partially-inductive approach based on interviews with 40 social entrepreneurs, a study of how social entrepreneurs market their ventures to consumers was conducted. Findings Findings reveal the ways in which marketing is relevant for social entrepreneurs, the unique challenges and opportunities entrepreneurs face in their interactions with customers, and the tactics entrepreneurs use to understand and educate their consumers. Originality/value The study’s findings contribute to work on social entrepreneurship and the entrepreneurship and marketing interface and have practical implications for social entrepreneurs.

Cooperative practices and non-financial performance of savings and credit cooperative societies

2020 ◽  
Vol 36 (3) ◽  
pp. 411-425
Author(s):  
Lawrence Musiitwa Kyazze ◽  
Isa Nsereko ◽  
Isaac Nkote
Keyword(s):  
Structural Equation Modeling ◽  
Financial Performance ◽  
Emerging Economies ◽  
Structural Equation ◽  
Design Methodology ◽  
Methodological Approach ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between cooperative practices of accountability, cooperative ownership, advanced communication and non-financial performance in savings and credit cooperative societies. Design/methodology/approach The study uses a cross-sectional research design and adopted a mixed methodological approach were hypotheses were statistically tested using structural equation modeling based on survey data (n = 220) and narratives from qualitative findings supported the quantitative findings from savings and credit cooperative societies. Findings The findings reveal that cooperative practices of accountability, cooperative ownership and advanced communication are significantly and positively associated with non-financial performance of savings and credit cooperative societies. Originality/value This study provides empirical evidence on the relationship between cooperative practices of accountability, cooperative ownership and advanced communication and non-financial performance in savings and credit cooperative societies in emerging economies like Uganda. To the best of the authors’ knowledge, there is limited or no study that has used the construct of agency theory in explaining the relationship between cooperative practices and non-financial performance in savings and credit cooperative societies.

Interaction among funding liquidity, liquidity creation and stock liquidity of banks

2016 ◽  
Vol 24 (4) ◽  
pp. 430-452 ◽  
Author(s):  
Muhammad Umar ◽  
Gang Sun
Keyword(s):  
Design Methodology ◽  
Least Square ◽  
Least Square Estimation ◽  
Stock Liquidity ◽  
Content Type ◽  
Funding Liquidity ◽  
Brics Countries ◽  
Recent Financial Crisis ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to explore the relationship between three different kinds of bank liquidity: funding liquidity; liquidity creation; and stock liquidity. Design/methodology/approach It used the data from listed banks of BRICS countries spanning the period 2007-2014. Simultaneous equations model and three-stage least square estimation were used for analysis. Findings First of all, increase in liquidity creation is linked to decline in funding liquidity, but variation in funding liquidity does not describe changes in liquidity creation. Second, higher stock illiquidity is associated with greater liquidity creation, but liquidity creation does not determine variation in stock liquidity. Lastly, there is no direct relationship between funding liquidity and stock liquidity; however, stock liquidity indirectly affects funding liquidity through liquidity creation. Practical implications The findings highlight the fact that capital is not the only determinant of liquidity creation, rather stock liquidity is an equally important determinant in the case of listed banks of BRICS countries. This fact has been highlighted by the recent financial crisis. Furthermore, funding liquidity depends on liquidity creation which depends on stock liquidity. However, the stock liquidity of banks neither depends on liquidity creation nor funding liquidity. Originality/value To the best of the authors’ knowledge, this study is the first one to provide the empirical evidence for the relationship between three different kinds of bank liquidity.

The relationship between budgetary evaluation, firm size and performance

2015 ◽  
Vol 34 (8) ◽  
pp. 973-986 ◽  
Author(s):  
Azzouz Elhamma
Keyword(s):  
Emerging Economies ◽  
Firm Size ◽  
Evaluation System ◽  
Design Methodology ◽  
Management Control ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to present the main results of the first empirical study done in Morocco and attempts to highlight the impact of the firm size on the budgetary evaluation and its performance according to the firm size. Design/methodology/approach – Data were collected using a questionnaire sent to the Moroccan firms. A total of 62 questionnaires were correctly returned. The response rate was 15 per cent. Findings – In this research, we identified three principal styles of budgetary evaluation: “strict budgetary evaluation” adopted by 21 per cent of the sample; “moderate budgetary evaluation” adopted by 27.4 per cent of the surveyed enterprises; and “lower budgetary evaluation” adopted by 51.6 per cent of the sample. The first style is adopted especially by large firms. The firm’s performance is significantly and positively correlated with the budgetary evaluation in large enterprises. This correlation is not significant in SMEs. Practical implications – The findings of this research can help managers of companies in emerging economies in the choice of a better budgetary evaluation system. Originality/value – The outcomes of the study are relevant both to the literature on budgetary evaluation in particular and on management control in general, since they determine that the correct fit between budgetary evaluation and firm size causes a positive and significant change in the firm’s performance.

Empirical evidence on disclosure and risk-taking of banks in Ghana

2016 ◽  
Vol 24 (2) ◽  
pp. 197-212 ◽  
Author(s):  
Lydia Kuranchie-Pong ◽  
Godfred Alufa Bokpin ◽  
Charles Andoh
Keyword(s):  
Empirical Evidence ◽  
Risk Taking ◽  
Design Methodology ◽  
Z Score ◽  
Total Risk ◽  
Treasury Bill ◽  
Content Type ◽  
Loan Losses ◽  
The Relationship ◽  
Insight Into

Purpose This paper aims to empirically examine the relationship between disclosure and risk-taking of banks in Ghana. The study also aims to gain an insight into the general risk-taking behaviour of banks in Ghana for the period 2007-2011. Design/methodology/approach The study used panel regression model and relate risk-taking to disclosure, controlling for bank size, profitability, liquidity and treasury bill rate. Disclosure scores from a disclosure index are used as a measure of disclosure, likewise Z-score as a measure of total risk. Also, the ratio of provisions for loan losses to gross loans by each bank for each year was used to examine the general risk-taking behaviour of Ghanaian banks. Findings The study revealed that the election year and the immediate subsequent year are characterized by an increase in non-performing loans. Greater disclosure is associated with more risk-taking and vice versa. This implies that market discipline is not effective in Ghana. Treasury bill rate, profitability and liquidity were found to be economically meaningful and statistically significant in influencing risk-taking of banks in Ghana. Originality/value As there are relatively few studies conducted in this area, specifically among banks in Ghana, this study will broaden the scope of the literature on disclosure and risk-taking by providing empirical evidence.

Money laundering in selected emerging economies: is there a role for banks?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sulaiman Abdullah Saif Alnasser Mohammed
Keyword(s):  
Developing Countries ◽  
Money Laundering ◽  
Emerging Economies ◽  
Design Methodology ◽  
Future Research ◽  
Legal Environment ◽  
Islamic Banks ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship

Purpose Understanding money laundering plays an important role in understanding economic growth (EG). Extensive research is conducted about that, previous research lacks answers about the relationship of anti-money laundering (AML) and EG by investigating the roles of the performance of Islamic banks, legal environment, financial crisis (FC) and bank size. Therefore, the purpose of this paper is to cover that gap. Design/methodology/approach SmartPLS 3.0 was used and 33 Islamic banks were selected from developing countries between 2007 and 2010. Findings Note that AML, Islamic bank performance, legal environment, and FC are significantly related to EG. Research limitations/implications The research would be of importance to those seeking to understand the determinants of EG; it is also beneficial for those writing books about money laundering and Islamic banks in developing countries. The limitation of the study is the low number of Islamic banks that have complete data. Thus, this could be future research contribution. Originality/value To the best knowledge of the author, research on money laundering and Islamic banks in developing countries are not extensive, we have found an ample room to discuss the said variables.

Advertising and promotions budgeting and the role of risk

2009 ◽  
Vol 43 (11/12) ◽  
pp. 1457-1476 ◽  
Author(s):  
Douglas West ◽  
Gerard P. Prendergast
Keyword(s):  
Risk Taking ◽  
Design Methodology ◽  
Measurement Techniques ◽  
Risk Process ◽  
Cultural Norms ◽  
Content Type ◽  
The Relationship ◽  
Advertising And Promotion ◽  
And Task

PurposeThis study aims to look at the conventional wisdom with regards to budgeting methods, processes, and sophistication in light of recent macro work relating budgetary approaches to risk‐taking.Design/methodology/approachBased on a survey of UK advertisers and personal interviews, current advertising and promotions budgeting methods and processes are summarized. A series of hypotheses relating risk, process and experience to advertising and promotions budgeting sophistication were tested.FindingsUK advertisers were found to use a variety of budgeting methods (two methods on average per company). Judgmental methods dominate, especially the “what is affordable” method, but at the same time more sophisticated methods like objective and task and measurement techniques (in particular return on investment) were solidly represented. The relationship between budgeting sophistication and risk was investigated, the premise being that risk and budgeting sophistication are inversely related, as well as budgetary processes and marketing experience.Research limitations/implicationsConsiderable insight is provided into the methods and processes being used. It is concluded that the explanation as to why firms use sophisticated or unsophisticated methods for setting their advertising and promotion budgets is largely related to organizational culture.Originality/valueJust over 1.5 percent of the UK's gross domestic product is spent on advertising and promotions (£19 billion). The study suggested that the primary reason for the lack of consensus on budgetary sophistication is that stakeholders involved with budgeting are far less concerned with specific methods than dealing with cultural norms, personalities, access to supporting data and policies and practices.

Value creation and value maintenance

2019 ◽  
Vol 13 (2) ◽  
pp. 318-341 ◽  
Author(s):  
Jiawen Chen ◽  
Xiaotao Yao ◽  
Linlin Liu
Keyword(s):  
Emerging Economies ◽  
Value Creation ◽  
Design Methodology ◽  
Institutional Environment ◽  
Institutional Development ◽  
Political Strategy ◽  
Content Type ◽  
Industry Regulation ◽  
Corporate Political Strategy ◽  
The Relationship

Purpose This paper aims to examine how a firm’s capability affects its political networking in emerging economies and how the institutional environment influences the relationship between a firm’s capability and its political networking. Design/methodology/approach The authors test the theoretical model by analyzing a database from a World Bank survey in China. Findings The results show a nonlinear (U-shaped) relationship between a firm’s capability and its efforts in political networking. The relationship between a firm’s capability and political networking is contingent on the institutional environment, as reflected in institutional development and industry regulation. Originality/value This study elucidates political networking in emerging economies and contributes to research on corporate political strategy.

Sign in / Sign up

Export Citation Format

Share Document