Can financial inclusion reduce the presence of corruption? Evidence from selected countries in Africa

2020 ◽  
Vol 47 (11) ◽  
pp. 1345-1362
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Random Effect ◽  
Secondary Data ◽  
Threshold Level ◽  
Financial Inclusion ◽  
Least Square ◽  
African Countries ◽  
Content Type ◽  
The Impact ◽  
Control Of Corruption

PurposeThe purpose of this paper is to evaluate the impact of financial inclusion (FI) on control of corruption in selected African countries.Design/methodology/approachThe study employs secondary data spanning over a period of 2005–2016. These data are sourced from IMF's International Financial Statistics, World Bank Development Indicators, Global Financial Development Database, Transparency International and International Country Risk Guide. The author uses Sarma (2008) approach to construct the FI index for 13 countries in Africa. The author applies random effect, robust least square and instrumental variable (IV) estimations to examine the impact of FI on control of corruption in Africa.FindingsThe author finds that financial inclusion improves the control of corruption. The author tests for possible FI threshold to avoid the case of extreme FI in Africa. The results show that there is a threshold level if reached, FI would have negative impacts in the control of corruption. This may likely happen mainly due to weak institutions in Africa. The results are robust to alternative proxy for control of corruption and various alternative estimation techniques.Practical implicationsThe finding indicates that FI can serve as part of toolkits for reducing corruption in Africa.Originality/valueThis study stresses the important role of FI in the economic system. It is the first paper that empirically suggests the role of FI in controlling corruption in Africa.

Financial inclusion in Africa: does it promote entrepreneurship?

2020 ◽  
Vol 12 (4) ◽  
pp. 687-706 ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
World Bank ◽  
Random Effect ◽  
Financial Inclusion ◽  
Least Square ◽  
African Region ◽  
African Countries ◽  
Ongoing Debate ◽  
Content Type ◽  
Development Indicators ◽  
The Impact

Purpose Financial inclusion policy focuses on bringing the less privileged groups into the formal financial system. Financial inclusion has a lot of benefits in the society. It can reduce the level of poverty, inequality and encourage business startup. This study aims to examine the impact of financial inclusion on entrepreneurship in selected African countries. Design/methodology/approach This paper examines how financial inclusion impacts entrepreneurship in 13 selected African countries using data from World Bank Development Indicators, IMF’s International Financial Statistics, doing business and World Bank Entrepreneurship Survey for the period of 2005-2016. It uses panel data regression techniques such as random effect, IV estimation and robust least square. Findings The results show that financial inclusion has a significant and positive effect on entrepreneurship in Africa. This result is robust to both alternative measures of financial inclusion and alternative estimators. Originality/value The possible relationship between financial inclusion and entrepreneurial development has been an ongoing debate in other developing countries. However, this issue has been neglected in the African region. There are little or no evidence to support the possible relationship in Africa. This paper makes an important contribution in this respect and further provides insightful information in the ongoing debate.

Your network is your net worth: political ties and innovation performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Ali Raza ◽  
Abdul Waheed
Keyword(s):  
Partial Least Square ◽  
Innovation Performance ◽  
Least Square ◽  
Equation Modeling ◽  
Unique Contribution ◽  
Content Type ◽  
Net Worth ◽  
Political Ties ◽  
The Impact

PurposeBased on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive capacity (AC) and a moderation role of technology turbulence.Design/methodology/approachA hypothetico-deductive approach is adopted to test the hypotheses. Data were collected from the small and medium enterprises (SMEs) managers/owners through a structured questionnaire.FindingsPartial least square structural equation modeling technique is used to analyze the hypothesized relationships; the findings showed that political ties significantly impact the innovation performance, and this relationship is mediated by AC. Moreover, technological turbulence moderated the relationship between political ties and innovation performance.Originality/valueDespite the increasing attention to the role of networking in improving innovation, there is a scarcity of studies on the role of political ties, AC and technology turbulence in fostering organizational innovation; thus, this study is a unique contribution to literature.

The role of audit committees in mitigating earnings management: evidence from Jordan

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh ◽  
Modar Abdullatif ◽  
Beatriz Aibar-Guzmán
Keyword(s):  
Developing Countries ◽  
Earnings Management ◽  
Audit Committee ◽  
Discretionary Accruals ◽  
Least Square ◽  
Audit Committees ◽  
Institutional Setting ◽  
Content Type ◽  
The Impact

PurposeThis study examines the relationship between audit committees (ACs) and earnings management (EM) in the developing country context of Jordan. In particular, it investigates whether audit committee attributes, including their size, independence, expertise and meetings, are able to restrict discretionary accruals as a proxy for EM.Design/methodology/approachThe generalized least square (GLS) regression was used to study the association between audit committee attributes and discretionary accruals, as a proxy of EM, for a sample of industrial firms listed on the Amman Stock Exchange (ASE) during the period 2012–2020. Data were obtained from the firms' annual reports.FindingsThe regression results indicate that audit committee independence is the only audit committee attribute that seems to improve the effectiveness of ACs, in that it is significantly associated with less EM, while other audit committee attributes that were tested do not show statistically significant associations.Research limitations/implicationsIn emerging markets, like Jordan, ACs may not be an efficient monitoring mechanism; therefore, it can be argued that the prediction made by the agency theory about the role of ACs in mitigating opportunistic EM activities does not necessarily apply to all contexts.Practical implicationsA better understanding of audit committee effectiveness in developing countries could help regulators in these countries assess the impact of planned corporate governance (CG) reforms and to better monitor and enhance the performance of ACs.Social implicationsIn a setting characterized by closely held companies, high power distance and low demand for high-quality CG mechanisms, this study contributes to understanding how this business system operates, and how improving CG mechanisms could be successful in such cultures.Originality/valueThis study investigates the under-researched relationship between audit committee characteristics and EM in developing countries. In so doing, it aims to provide new insights into this relationship within the developing context case of Jordan, including if and how the institutional setting influences this relationship.

Insurance regulations, risk and performance in Ghana

2019 ◽  
Vol 28 (1) ◽  
pp. 74-96
Author(s):  
Baah Aye Kusi ◽  
Abdul Latif Alhassan ◽  
Daniel Ofori-Sasu ◽  
Rockson Sai
Keyword(s):  
Random Effect ◽  
Least Square ◽  
Insurance Market ◽  
Content Type ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
And Performance ◽  
First Time

Purpose This study aims to examine the hypothesis that the effect of insurer risks on profitability is conditional on regulation, using two main regulatory directives in the Ghanaian insurance market as a case study. Design/methodology/approach This study used the robust ordinary least square and random effect techniques in a panel data of 30 insurers from 2009 to 2015 to test the research hypothesis. Findings The results suggest that regulations on no credit premium and required capital have insignificant effects on profitability of insurers. On the contrary, this study documents evidence that both policies mitigate the effect of underwriting risk on profitability and suggests that regulations significantly mitigate the negative effect of underwriting risk to improve profitability. Practical implications The finding suggests that policymakers and regulators must continue to initiate, design and model regulations such that they help tame risk to improve the performance of insurers in Ghana. Originality/value This study provides first-time evidence on the role of regulations in controlling risks in a developing insurance market.

Doing good across organizational boundaries

2018 ◽  
Vol 38 (12) ◽  
pp. 2389-2412 ◽  
Author(s):  
Hugo K.S. Lam
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Financial Risk ◽  
Theoretical Perspective ◽  
Secondary Data ◽  
Content Type ◽  
Signalling Theory ◽  
The Impact ◽  
Moderating Role

Purpose The purpose of this paper is to theoretically hypothesise and empirically test the impact of sustainable supply chain practices (SSCPs) on firms’ financial risk. Design/methodology/approach This research adopts signalling theory to explain the signalling role of SSCPs and the moderating role of the signalling environment in terms of supply chain characteristics. It collects and combines longitudinal secondary data from multiple sources to test the direct impact of SSCPs on firms’ financial risk and the moderating role of supply chain complexity and efficiency. It conducts various additional tests to check the robustness of the findings and to account for alternative explanations. Findings This research shows that SSCPs help firms reduce financial risk but do not affect their returns. Moreover, the risk reduction of SSCPs is greater for firms with more complex and efficient supply chains. The findings are robust to alternative variable measurements and analysing strategies. Research limitations/implications This research reveals the role of SSCPs in reducing financial risk, urging researchers to pay more attention to the financial risk implications of supply chain practices in general and SSCPs in particular. Practical implications This research encourages firms to engage in SSCPs to reduce financial risk and enables them to assess the urgency of their SSCPs investments in view of the complexity and efficiency of their supply chains. Originality/value This is the first research examining the impact of SSCPs on financial risk, based on longitudinal secondary data and signalling theory. The empirical evidence documented and the theoretical perspective adopted offer important implications for future practice and research on SSCPs.

scholarly journals Financial Inclusion in Ethiopia: Is It on the Right Track?

2020 ◽  
Vol 8 (2) ◽  
pp. 28 ◽  
Author(s):  
Tekeste Berhanu Lakew ◽  
Hossein Azadi
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Secondary Data ◽  
Financial Inclusion ◽  
East African ◽  
African Countries ◽  
Regulatory Guidelines ◽  
The Government ◽  
The Right ◽  
The Impact

It is important to evaluate the impact of Ethiopia’s financial inclusion strategy since it has been launched in 2014. Accordingly, this paper assesses the extent to which the target has been met. The main aim of this study is to measure the success or failure of Ethiopia’s financial inclusion in comparison with other countries in East Africa. Using secondary data, this study revealed that Ethiopia’s financial inclusion is not as successful as other East African countries. This study also found that Ethiopians prefer informal saving clubs rather than formal financial organs. This preference, combined with unemployment and low income, is the barrier to the financial inclusion strategy. Based on the findings, identifying and addressing root causes should be done by removing distance, cost, credit, and documentation barriers. Moreover, the findings showed that access to public transit can also expand the reach of formal financial institutions by encouraging more people to physically access financial institutions. This study recommended access to formal financial organs as a core to financial institutions. Access to formal financial organs should be boosted through increasing financial institutions. Educating individuals about their financial circumstances were also recommended so that people can increase their formal saving uptake. This paper also recommended that the government develop regulatory guidelines for the functioning of financial institutions. The main outcome, therefore, is that financial institutions could be more transparent and predictable, reduce costs, and simplify the rules for entering the market.

Electronic fraud: an emerging cause of bank failure in Nigerian deposit money banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folowosele Folarin Akinwale ◽  
Ikpefan Ochei Ailemen ◽  
Isibor Areghan
Keyword(s):  
Deposit Insurance ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Least Square Method ◽  
Least Square ◽  
Annual Reports ◽  
Content Type ◽  
Ordinary Least Square ◽  
Unethical Practices ◽  
The Impact

Purpose This study aims to review the degree to which fraud and other unethical practices especially in the digital space have affected the Nigerian banking industry both in the past and present, and how it will be a growing concern in the imminent future. The objective of the study was to examine the impact of electronic fraud on the quality of assets and return on assets of Nigerian deposit money banks. Design/methodology/approach The research used secondary data for the periods 2006 till 2018, which were collected from the Nigeria Deposit Insurance Corporation annual reports. Descriptive analysis and the ordinary least square method of regression analysis were used for data analysis. Findings Findings revealed that electronic fraud cases increased progressively over most of the years of study, which can be attributed to the increased bank products that are electronic-based. Originality/value Many of the reviewed literature examined electronic fraud and its impact on bank profitability but this study examined the cause of electronic fraud and what can be done to curtail it.

The impact of digitalization and inter-organizational technological activities on supplier opportunism: the moderating role of relational ties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lu Yang ◽  
Baofeng Huo ◽  
Min Tian ◽  
Zhaojun Han
Keyword(s):  
Supply Chain ◽  
Indirect Effect ◽  
Least Square ◽  
Dark Side ◽  
Supply Side ◽  
Relational Governance ◽  
Content Type ◽  
It Integration ◽  
The Impact

PurposeDigitalization encourages the manufacturer to engage in inter-organizational technological activities (i.e. supplier IT integration and supply visibility) with its major supplier, which influences supply chain (SC) governance. This study tests a moderated mediation model that considers supplier IT integration and supply visibility as mediators between supply-side digitalization and supplier opportunism, and relational ties as a moderator in the relationship between inter-organizational technological activities and supplier opportunism.Design/methodology/approachOrdinary least square (OLS) regression is used to examine data from 200 firms in China describing their supply chain management (SCM) practices and perceived relationships with their major suppliers.FindingsSupply-side digitalization is positively related to supplier IT integration and supply visibility. Supply-side digitalization has a positive indirect effect on supplier opportunism through supplier IT integration but a negative indirect effect through supply visibility. Relational ties weaken the positive effect of supplier IT integration and the positive indirect effect of supply-side digitalization on supplier opportunism. Relational ties also weaken the negative effect of supply visibility and the negative indirect effect of supply-side digitalization on supplier opportunism.Originality/valueThis study enriches understanding of SC governance in the digital age by empirically confirming that digital transformation brings both challenges and opportunities to SC governance and by clarifying the interplay of relational governance and technological activities. In addition, this study contributes to the SC digitalization literature by empirically validating the role of digitalization in promoting inter-organizational technological activities, as well as by revealing its potential dark side.

Climate change and rice production in India: role of ecological and carbon footprint

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pushp Kumar ◽  
Naresh Chandra Sahu ◽  
Mohd Arshad Ansari ◽  
Siddharth Kumar
Keyword(s):  
Climate Change ◽  
Carbon Footprint ◽  
Ecological Footprint ◽  
Rice Production ◽  
Least Square ◽  
Rice Crop ◽  
Content Type ◽  
The Impact

PurposeThe paper investigates the effects of climate change along with ecological and carbon footprint on rice crop production in India during 1982–2016.Design/methodology/approachThe autoregressive distributed lag (ARDL), canonical cointegration regression (CCR) and fully modified ordinary least square (FMOLS) models are used in the paper.FindingsA long-run relationship is found between climate change and rice production in India. Results report that ecological footprint and carbon footprint spur long-term rice production. While rainfall boosts rice crop productivity in the short term, it has a negative long-term impact. Further, the findings of ARDL models are validated by other cointegration models, i.e., the FMOLS and CCR models.Research limitations/implicationsThis study provides insights into the role of ecological footprint and carbon footprint along with climate variables in relation to rice production.Originality/valueIn the literature, the effects of ecological and carbon footprint on rice production are missing. Therefore, this is the first study to empirically examine the impact of climate change along with ecological footprint and carbon footprint on rice production in India.

Social media influencer marketing: the moderating role of materialism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kian Yeik Koay ◽  
Man Lai Cheung ◽  
Patrick Chin-Hooi Soh ◽  
Chai Wen Teoh
Keyword(s):  
Social Media ◽  
Purchase Intention ◽  
Structural Equation ◽  
Moderating Effect ◽  
Partial Least Square ◽  
Least Square ◽  
Content Type ◽  
Decision Making Processes ◽  
The Impact

Purpose Social media influencers (SMIs) have become an important source of influence that affects consumer behaviours in their decision-making processes. As such, this justifies scholarly attention in understanding how SMIs transfer their meanings to endorsed brands and drive consumers’ positive behavioural intentions. With the intention to fill this knowledge gap, this paper aims to examine the impact of SMIs’ credibility, as manifested by trustworthiness, attractiveness and expertise, along with the moderating effects of materialism, on followers’ purchase intention. Design/methodology/approach Self-administrated online surveys were used to collect data from Instagram users. A total of 191 usable data were collected and analysed using partial least square structural equation modelling. Findings The results show that SMIs’ trustworthiness and expertise are significant predictors of followers’ purchase intention. Moreover, the moderating effect of materialism on the relationship between attractiveness and purchase intention is significant. Notably, the influence of attractiveness on purchase intention is greater when materialism is high. Originality/value This research contributes to the SMI literature by examining the influence of SMIs’ trustworthiness, attractiveness and expertise, along with the moderating effect of materialism, on followers’ purchase intention.

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