Does banking regulatory regime affect the quality of bank earnings in the East African region?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Mathuva ◽  
Moses Nyangu
Keyword(s):  
Positive Impact ◽  
Earnings Quality ◽  
Banking Regulation ◽  
Regulatory Mechanisms ◽  
Regulatory Regime ◽  
East African ◽  
African Region ◽  
Content Type ◽  
East African Region

PurposeIn this paper, the authors examine the association between the banking regulatory regime and the quality of bank earnings. We further investigate whether the banking agency regulatory characteristics moderate the association between banking regulation and earnings quality.Design/methodology/approachUsing panel data spanning 29 years over the period 1991 to 2019, the authors model bank earnings quality as a function of scores for banking regulation for 170 banks in the East African region using both the feasible generalized least squares (FGLS) and generalized method of moments (GMM) estimation methods.FindingsThe results, which are robust for endogeneity among other checks, reveal a positive impact of bank regulatory mechanisms on the quality of bank earnings. The authors further establish differential impact of specific regulatory mechanisms, with some contributing positively toward earnings management while others contributing negatively toward earnings management. The differential impacts of banking regulation on earnings quality are also manifested in the country-level analyses.Research limitations/implicationsFirst, the study utilises a mix of bank-specific, country-specific as well as economy-specific variables in one dataset. Second, the authors utilise survey-based data using the World Bank's Bank Regulation and Supervision Surveys (BRSS) for the periods 1999 to 2019. The authors assume that the bank regulatory mechanisms in place pre-1999 are close to the mechanisms in place as per the 1999 BRSS. Given limitations in data availability, the authors are not able to control for banks engaging in multiple activities such as insurance, underwriting of securities, FinTechs, among others.Practical implicationsThe results are useful in bridging the gap between theory and practice regarding the expected effect of strict banking regulations on the quality of earnings in Eastern African Banks. For the positive impact of banking regulation on bank earnings quality to be felt, the institutional, social and environmental specificities of the five selected countries need to be adequately developed and taken into consideration.Originality/valueThis study is perhaps the first to utilise a large dataset of commercial banks from countries in a developing region characterised by relatively lower enforcement and dynamism in the banking regulation. Further, in-depth studies on the association between banking regulation and earnings quality remain sparse.

Revisiting earnings quality and bank efficiency among East African developing economies: do systemic banking and financial crises matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Mutua Mathuva ◽  
Moses Nyangu Nzuki
Keyword(s):  
Earnings Management ◽  
Developing Economies ◽  
Earnings Quality ◽  
Bank Loan ◽  
East African ◽  
Loan Loss ◽  
Profit Efficiency ◽  
Regional Economic ◽  
Content Type ◽  
Economic Bloc

PurposeIn this paper, the authors investigate whether the systemic local banking crises (LBCs) and global financial crisis (GFC) impact the association between bank profit efficiency and earnings quality in developing economies.Design/methodology/approachUsing panel data spanning 29 years over the period 1991–2019 for 169 banks drawn from five East African countries, the authors perform difference-in-difference multivariate analyses using the generalised method of moments (GMM) system estimator on a sample consisting of 2,261 bank-year observations.FindingsThe results, which are robust for endogeneity and other checks, show that banks with higher profit efficiency consistently report higher quality earnings. The authors further establish that whereas systemic LBCs contribute negatively to bank earnings quality, the GFC tends to have a positive impact. These results are upheld when the joint impacts of both systemic LBCs, GFC and profit efficiency on earnings quality are considered. The positive influence of profit efficiency and GFC on earnings quality is pronounced under income-decreasing earnings management. The impacts of profit efficiency, LBCs and GFC on earnings quality appear to be non-monotonic and vary across the sampled countries.Research limitations/implicationsThe study's findings are based on banks in five developing countries within a regional economic bloc. Additional studies could focus on other economic blocs for enhanced generalisability of the findings. In addition, some of the variables examined are studied at bank-level, while other variables are at country-level. Finally, the study establishes an association between the variables of interest, and this does not necessarily imply causation.Practical implicationsThe results provide useful insights to bank regulatory and supervisory agencies on the need to exercise increased risk-based scrutiny over bank loan loss provisioning and minimum loan loss reserve requirements. From an audit perspective, auditors need to be cautious and apply an enhanced risk-based audit especially when auditing banks during and after a financial, banking or systemic crisis. Credit rating agencies need to pay closer attention to the LLPs of distressed banks. Finally, bank investors and customers should be cautious when using bank financial statements, since bank managers of poorly performing banks might engage in aggressive earnings management.Originality/valueThe study is perhaps the first to examine the joint effects of systemic LBCs on the association between bank profit efficiency and the quality of earnings in a larger dataset of banks in a developing regional economic bloc. The authors also employ the GMM system estimator in the modelling, which helps address some weaknesses in prior studies.

Perceptions of nurses on the impact of accreditation on quality of care

2014 ◽  
Vol 19 (2) ◽  
pp. 69-82 ◽  
Author(s):  
Ahmet Yildiz ◽  
Sidika Kaya
Keyword(s):  
Regression Analysis ◽  
Patient Satisfaction ◽  
Quality Of Care ◽  
Positive Impact ◽  
Pearson Correlation ◽  
High Rate ◽  
Content Type ◽  
Independent Variables ◽  
The Impact

Purpose – This article aims to investigate perceptions of Turkish nurses on the impact of accreditation on quality of care and the effect of accreditation on quality results. Design/methodology/approach – This study was performed as a cross-sectional, questionnaire-based survey on 258 nurses who started working in the hospital before it was accredited and continued to work during and after accrediation and who therefore knew both the hospital's pre-accrediation and post-accreditation periods. In this study, descriptive statistical analyses (means and standard deviations) were carried out to explore the views of the participants on “quality results,” “benefits of accreditation” and “participation of employees.” “Quality results” was considered to be the dependent variable, while “benefits of accreditation” and “participation of employees” were accepted as the independent variables. The relationship between the dependent variable and the independent variables was tested using Pearson correlation and multiple regression analysis. External patient satisfaction data collected by the quality department of the hospital before and after accreditation were also investigated. Findings – It was found that nurses had generally high scores for the items concerning the benefits of accreditation. There was a statistically significant positive correlation between the dependent variable (quality results) and the independent variables (benefits of accreditation and participation of employees). Regression analysis indicated that R2=0.461 and the extent to which the independent variables explained the dependent variable was 46.1 per cent, which is a high rate. Patient satisfaction scores increased after accreditation. Practical implications – Our study suggest that providing support for nurses, especially nurses with administrative responsibilities and incorporating employees into the process are important for exercising quality standards. Originality/value – Hospital accreditation has a positive impact on quality results especially on quality of care provided to patients and patient satisfaction. Study findings could guide policy makers and hospital managers in Turkey and in other countries who are preparing or implementing accreditation.

scholarly journals East African ROAD

2015 ◽  
Vol 11 (A29A) ◽  
pp. 414-415
Author(s):  
Kelali Tekle
Keyword(s):  
Applied Sciences ◽  
Stem Education ◽  
Developing World ◽  
Tertiary Education ◽  
General Assembly ◽  
East African ◽  
African Region ◽  
Science And Engineering ◽  
Regional Office ◽  
East African Region

AbstractIn the developing world astronomy had been treated as the science of elites. As a result of this overwhelming perception, astronomy compared with other applied sciences has got less attention and its role in development has been insignificant. However, the IAU General Assembly decision in 2009 opened new opportunity for countries and professionals to deeply look into Astronomy and its role in development. Then, the subsequent establishment of regional offices in the developing world is helping countries to integrate astronomy with other earth and space based sciences so as to progressively promote its scientific and development importance. Gradually nations have come to know that space is the frontier of tomorrow and the urgency of preeminence on space frontier starts at primary school and ascends to tertiary education. For this to happen, member nations in east African region have placed STEM education at the center of their education system. For instance, Ethiopian has changed University enrollment strategy to be in favor of science and engineering subjects, i.e. every year seventy percent of new University entrants join science and engineering fields while thirty percent social science and humanities. Such bold actions truly promote astronomy to be conceived as gateway to science and technology. To promote the concept of astronomy for development the East African regional office has actually aligned it activities to be in line with the focus areas identified by the IAU strategy (2010 to 2020).

Clinical guidelines and patient related outcomes: summary of evidence and recommendations

2019 ◽  
Vol 24 (3) ◽  
pp. 230-238
Author(s):  
Luciana Pereira de Vasconcelos ◽  
Luiza de Oliveira Rodrigues ◽  
Moacyr Roberto Cuce Nobre
Keyword(s):  
Medical Practice ◽  
Positive Impact ◽  
The Other ◽  
Evidence Based ◽  
Content Type ◽  
Good Medical Practice ◽  
Other Hand ◽  
Care Improvement ◽  
Based Medicine

Purpose Good medical practice, evidence-based medicine (EBM) and clinical practice guidelines (CPG) have been recurring subjects in the scientific literature. EBM advocates argue that good medical practice should be guided by evidence-based CPG. On the other hand, critical authors of EBM methodology argue that various interests undermine the quality of evidence and reliability of CPG recommendations. The purpose of this paper is to evaluate patient related outcomes of CPG implementation, in light of EBM critics. Design/methodology/approach The authors opted for a rapid literature review. Findings There are few studies evaluating the effectiveness of CPG in patient-related outcomes. The systematic reviews found are not conclusive, although they suggest a positive impact of CPGs in relevant outcomes. Research limitations/implications This work was not a systematic review of literature, which is its main limitation. On the other hand, arguments from EBM and CPG critics were considered, and thus it can enlighten health institutions to recognize the caveats and to establish policies toward care improvement. Originality/value The paper is the first of its kind to discuss, based on the published literature, next steps toward better health practice, while acknowledging the caveats of this process.

The impact of the global economic crisis of 2008 on earnings quality in Mexico

2019 ◽  
Vol 9 (3) ◽  
pp. 407-421
Author(s):  
Jose Miranda-Lopez ◽  
Ivan Valdovinos-Hernandez
Keyword(s):  
Earnings Management ◽  
Economic Crisis ◽  
Earnings Quality ◽  
Accounting Standards ◽  
Previous Literature ◽  
Income Smoothing ◽  
Accounting Quality ◽  
Content Type ◽  
Global Economic Crisis

Purpose The purpose of this paper is to examine the earnings quality of companies listed on Mexico’s primary stock market, the Bolsa Mexicana de Valores (Bolsa) before and during the global economic crisis of 2008. Previous research has shown that these economic events can have potentially conflicting effects on the quality of earnings of listed companies in capital markets around the world. Design/methodology/approach This paper operationalizes earnings quality based on earnings management. Therefore, four constructs to proxy for earnings quality are developed from previous literature, and multiple regression analysis along with tests of differences across two time periods, 2005–2007 and 2008–2010, are used to determine if there is a significant change in the accounting quality of companies listed on the Bolsa before and after the start of the global economic crisis. Findings Results indicate a statistically significant decrease of earnings quality on three out of the four constructs used to proxy for earnings management. There is only one construct in this category that shows a significant increase of earnings quality. Research limitations/implications There are different number of constructs and methodologies used to test for earnings quality. This study draws on four different constructs on two dimensions of earnings quality from previous literature, but other methodologies and constructs can potentially be used as well, such as discretionary accruals. Furthermore, there is a chance that there can be confounding factors affecting the results of this study besides the effects of the global economic crisis. Finally, the sample used in this study comprises non-financial public companies listed on the Bolsa, which can affect the generalization of the results to countries other than Mexico. Practical implications The results of this study can be of interest to Mexican and foreign investors, standard setters and regulators of the Bolsa, as the results show a strong incentive to manage companies’ earnings using income smoothing in an emerging economy during an economic crisis even after converging to a higher-quality set of accounting standards. Results can also be of interests to investors and regulators in other Latin-American countries with economies similar to that of Mexico. Originality/value This is the first study to test the quality of earnings of Mexican companies before and during the global economic crisis of 2008. Thus, this study contributes to the accounting quality literature by offering evidence showing a significant increase of income smoothing during the global economic crisis for companies listed in a developing economy with a relevant history of economic crises, even when these companies were using recently converged, higher-quality accounting standards.

scholarly journals Lean Six-Sigma: the means to healing an ailing NHS?

2018 ◽  
Vol 35 (9) ◽  
pp. 1976-1988 ◽  
Author(s):  
John Bancroft ◽  
Krish Saha ◽  
Di Li ◽  
Gabor Lukacs ◽  
Xavier Pierron
Keyword(s):  
Patient Care ◽  
Six Sigma ◽  
Positive Impact ◽  
Lean Six Sigma ◽  
Content Type ◽  
Staffing Levels ◽  
Accident And Emergency ◽  
Timely Fashion ◽  
Performance Challenges

Purpose The purpose of this paper is to examine England’s Accident and Emergency (A&E) arm of the National Health Service (NHS). It considers the positive impact that Lean has had and Six-Sigma can have in A&E departments to improve the quality and reliability of the service offered, in an area that is facing performance challenges. Design/methodology/approach Independent variables average monthly temperature data (degrees Celsius) obtained from the Met Office and weekly A&E data, patient volume is analysed alongside the dependent variable, the percentage of patients seen in 4 h or less. Findings The model produced a robust positive impact when Lean Six-Sigma is adopted, increasing the likelihood of A&E dependents meeting their performance objective to see and treat patients in 4 h or less. Research limitations/implications Further variables such as staffing levels, A&E admission type should be considered in future studies. Additionally, it would add further clarity to analyse hospitals and trusts individually, to gauge which are struggling. Practical implications Should the NHS further its understanding and adoption of Lean Six-Sigma, it is believed this could have significant improvements in productivity, patient care and cost reduction. Social implications Productivity improvements will allow the NHS to do more with an equal amount of funding, therefore improving capacity and patient care. Originality/value Through observing A&E and its ability to treat patients in a timely fashion it is clear the NHS is struggling to meet its performance objectives, the recommendation of Six-Sigma in A&E should improve the reliability and quality of care offered to patients.

scholarly journals An Analysis of Public-Private Partnerships in East Africa

2020 ◽  
Vol 11 (5) ◽  
pp. 152
Author(s):  
Lukamba Muhiya Tshombe ◽  
Thekiso Molokwane ◽  
Alex Nduhura ◽  
Innocent Nuwagaba
Keyword(s):  
Developed Countries ◽  
Public Private Partnerships ◽  
Infrastructure Development ◽  
East African ◽  
African Region ◽  
African Countries ◽  
Scientific Discussion ◽  
East African Region ◽  
Sub Saharan ◽  
The Impact

The impact of the implementation of public-private partnerships (PPPs) in the Sub-Saharan African region on infrastructure and services is becoming increasingly perceptible. A considerable number of African countries have embraced PPPs as a mechanism to finance large projects due to a constrained fiscus. At present, many financial institutions, such as the World Bank, the International Monetary Fund and the African Development Bank, which finance some of the projects, have established a department or unit that mainly focuses on infrastructure development in developing countries. The private sector in Africa is equally seen as a significant partner in the development of infrastructure. African governments need to tap into private capital to invest in infrastructure projects. This scientific discussion provides an analysis of PPPs in the East African region. This article selected a number of countries to illustrate PPP projects in the sub-region. The analysis of this study illustrates that the East African region represents unique and valuable public-private partnership lessons in different countries. This study also traces the origins of PPPs to more than a century ago where developed countries completed some of their projects using the same arrangement. This paper further demonstrates that the application of PPPs is always characterised by three factors, namely a country, a sector and a project. Experts in the field often refer to these elements as layers, which usually precede any successful PPP.

Sign in / Sign up

Export Citation Format

Share Document