Institutions, capital control, and liquidity creation

2016 ◽  
Vol 8 (3) ◽  
pp. 396-422 ◽  
Author(s):  
Babu G. Baradwaj ◽  
Yingying Shao ◽  
Michaël Dewally
Keyword(s):  
Banking Sector ◽  
Dynamic Effect ◽  
Control Policy ◽  
Economic Conditions ◽  
Economic Downturn ◽  
Capital Control ◽  
Content Type ◽  
The Creation ◽  
The Impact

Purpose The purpose of this study is to conduct an empirical investigation on how country-specific characteristics such as the quality of the institutional environment and the restrictiveness of capital control policy affect domestic financial sector’s ability to provide liquidity to the economy. Design/methodology/approach This study uses panel regressions on international banking data across 102 countries from Bankscope. Findings The results show that strong institutions and looser capital control in a country enhance the banks’ role as the liquidity provider to the economy. The study also finds that institutional quality and capital control have a dynamic effect that influences the creation of liquidity. Better institutions benefit the creation of liquidity in either under normal economic conditions or during economic downturn. Loosened capital control, as a result of financial openness, facilitates liquidity creation under normal economic conditions. Originality/value This study complements the research on the role of country-level institutions in financial and economic development and suggests a liquidity channel through which a country’s institutions can further economic growth. The study also provides evidence on the impact of a country’s control of capital flows on the role of banking sector in domestic economy.

The nexus of economic growth, priority sector lending and non-performing assets: case of Indian banking sector

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dolly Gaur ◽  
Dipti Ranjan Mohapatra
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Dynamic Panel ◽  
Content Type ◽  
Generalized Methods Of Moments ◽  
Major Increase ◽  
Dynamic Panel Regression ◽  
Methods Of Moments ◽  
The Impact

PurposeIn recent years, the Indian banking sector is facing a major cause of concern in the form of Nonperforming Assets (NPA), and the priority sector lending (PSL) is generally recognized as the major factor contributing to it. Thus, the present study has been carried out with the objective of examining the relationship between priority sector lending and GDP growth. Thereafter, the role of PSL and certain other bank-specific, industry-specific and macroeconomic variables in determining NPA has been studied.Design/methodology/approachTaking a sample of 45 scheduled commercial banks, the study has been carried out for 14 years (2004–2018). Granger causality between PSL and GDP has been examined by applying the Dumitrescu-Hurlin test. For the purpose of investigating the impact of PSL and other determinants on NPA, both static and dynamic panel regression have been performed. Under the dynamic panel, system generalized methods of moments (S-GMM) approach has been followed.FindingsThe findings show that there exists a positive correlation and bidirectional causal relationship between PSL and GDP, which implies that PSL brings additional growth for the whole economy. In addition to it, PSL is found to be insignificant for the NPA ratio, and thus, it can be inferred that credit extended to government-specified sectors does not bring any major increase in the bad loan portfolio of banks.Practical implicationsThe policymakers and bank management can take a cue from the findings of this study to decrease the exposure to loan nonrepayment issue. The priority sectors are in need of formal credit for their growth, and since the rising population of the country can find employment in these sectors, banks should meet their credit needs while securing their position with regard to the NPA problem.Originality/valueThe issue of NPA determinants, and in particular, the contribution of priority sector lending in it has not been much explored for Indian banking sector. Also, the present study adds to the literature by using the causality approach for examining the importance of directed credit schemes for economic growth.

Revenue management systems and hotel performance in the economic downturn

2016 ◽  
Vol 28 (4) ◽  
pp. 658-680 ◽  
Author(s):  
Bienvenido Ortega
Keyword(s):  
Revenue Management ◽  
Unobserved Heterogeneity ◽  
Labour Productivity ◽  
Economic Conditions ◽  
Economic Downturn ◽  
Content Type ◽  
Hotel Performance ◽  
Context Specific ◽  
The Impact

Purpose The purpose of this paper is to analyse whether hotels that use a revenue management system (RMS) outperform non-RMS-users in a context of decreasing demand. Design/methodology/approach A database of chain hotels with a rating of three or more stars was used to estimate MANOVA and ANOVA models to analyse the role of RMSs in hotel performance. Findings In a context of strong competition in prices and surplus capacity, the findings suggest that RMSs have been more effective in improving occupancy than in achieving higher rates. Also, the use of RMSs did not have a significant impact on hotel labour productivity. Research limitations/implications Managers may believe that they have adopted an RMS when, in fact, they have not fully done so. In addition, establishment-level unobserved heterogeneity, such as the quality of management or unobserved quality of service, cannot be fully controlled because of the nature of the data used. The main implication of this paper is that the potential of RMSs as revenue enhancer might be influenced by unstable market and economic conditions. However, the absence of significant effects on RevPAR performance might be also the result of firms’ adopting inadequate RM strategies. Further research could investigate whether the findings are context-specific or whether firms are failing to implement effective RMSs for other reasons. Originality/value The approach used in this paper is new to the literature, given that it uses statistical methods to analyse the impact of implementing an RMS on hotel performance under specific economic conditions and using alternative indicators.

Impact of internal and external CSR on organizational performance with moderating role of culture: empirical evidence from Chinese banking sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdul Waheed ◽  
Qingyu Zhang ◽  
Abaid Ullah Zafar ◽  
Hashim Zameer ◽  
Muhammad Ashfaq ◽  
...  
Keyword(s):  
Organizational Performance ◽  
Banking Sector ◽  
Content Type ◽  
Managerial Implications ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Chinese Banking

PurposeThis study investigates the impact of corporate social responsibility (CSR) on organizational performance, especially competitive performance (CP) along with moderating role of the organizational culture (OC) from the banking sector of China. Drawing on the stakeholder theory, the first goal is to examine the relationships between CSR and organizational CP. Second, the purpose is to evaluate the moderation of OC between the relationship of CSR and CP, respectively.Design/methodology/approachSEM using SmartPLS was majorly engaged to ascertain the relationship and to inquire the assumed hypotheses. The convenience sampling was engaged to collect the data from the Chinese banking market with the help of students, colleagues and personal visits.FindingsThe findings exhibited that CSR both external and internal CSR has significant correlations on organizational CP within banking sector of China. Second, the findings revealed a positive moderation influence of OC between the relationships of CSR and organizational CP. The comprehensive analysis of each factor of CSR on organizational CP was autonomously inspected to understand the insights which ensure that how the incorporation of CSR and OC activities may improve organizational CP.Research limitations/implicationsThis study faces numerous limitations related to sample and geographic locations that assure new work possibilities for researchers across the world.Practical implicationsThis study equips insightful information for management on how organizations can obtain CP by consolidating CSR and OC activities as their more productive strategic tools. This article endows with potential theoretical and managerial implications with empirical addition to concerned literature of OC, CSR and organizational CP.Social implicationsUnderstanding OC and CSR activities can provide interesting and helpful insights for the personnel to perform well within the banking institutes.Originality/valueThe topic of CSR and culture has been known as the evolving concept that is getting strong concern for the researchers. The additional work particularly empirical is yet required to explore the insights on CSR and OC themes worldwide, especially in developing nations.

Competition law and policy for the EU banking sector in a period of increased economic uncertainty

2012 ◽  
Vol 54 (4) ◽  
pp. 284-301 ◽  
Author(s):  
Ilias Kapsis
Keyword(s):  
Banking Sector ◽  
Government Support ◽  
Bank Failures ◽  
The European Union ◽  
Content Type ◽  
Regulation And Supervision ◽  
The Impact ◽  
State Aids

PurposeThe purpose of this article is to discuss the long‐term impact of the current financial and economic crisis on competition in the European Union (EU) banking sector.Design/methodology/approachThe article first discusses the long term role of competition in the banking sector, commenting on policy developments prior to the crisis. Then the impact of the crisis is discussed focusing on two main areas of policy state: aids and bank regulation and supervision. The article culminates with the conclusions.FindingsThe main findings about state aids are that the efforts of the Commission to ensure that aided companies would not use the government support to distort competition seem to be working. However, given that the full impact on competition of these aids may take years to be felt, the Commission should be prepared to take action where necessary to ensure that competition will be protected. The provision of state aids could not have been avoided due to the grave systemic risks associated with bank failures. In respect of regulation and supervision, the article concluded that there is a lot of work to be done in this area to ensure that mistakes that led to the crisis will not be repeated but also that there is need for the Commission to ensure that the reforms to the regulatory and supervisory architecture do not occur at the expense of competition.Originality/valueThe article contains proposals about policy adjustments, thus contributing to the ongoing debate about the role of competition policy in the efforts to address the impact of the crisis.

Impact of self-efficacy and retention on transfer of training

2017 ◽  
Vol 36 (10) ◽  
pp. 1270-1282 ◽  
Author(s):  
Kamran Iqbal ◽  
Ghulam Dastgeer
Keyword(s):  
Self Efficacy ◽  
Quantitative Research ◽  
Transfer Of Training ◽  
Banking Sector ◽  
Vital Role ◽  
Content Type ◽  
Motivation To Transfer ◽  
The Impact ◽  
And Training

Purpose Training plays a vital role in the success of an organization as it provides the employees an opportunity to improve their competencies. The purpose of this paper is to examine the mediating effects of motivation to transfer between self-efficacy, training retention and transfer of training. Design/methodology/approach Research hypotheses were tested using quantitative research technique. The data were collected through self-administered questionnaire from 300 employees working in the banking sector of twin cities (Rawalpindi and Islamabad), of Pakistan. In total, 215 questionnaires were finally used for analysis. Findings The findings of this study reveal that motivation to transfer mediates the relationship between self-efficacy, training retention and transfer of training. Practical implications Although previous studies have tested the impact of self-efficacy and training retention on the transfer of training, but the mechanism through which self-efficacy and retention influence transfer of training remained underexplored. Knowing the role of self-efficacy and training retention as the antecedents of motivation to transfer can help the training managers to design an effective and efficient training plan. Originality/value This study will contribute to the existing body of knowledge especially in the Pakistani context by testing the role of trainee’s characteristics in transfer of training. Also, this study has empirically tested the mediating role of motivation to transfer between trainee’s characteristics (self-efficacy and retention) and transfer of training which has not been tested before.

scholarly journals What effect did the Green Credit Policy have on China's energy or emission intensive firms?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qin Zhang ◽  
Li Xu ◽  
Keying Wang ◽  
Xunpeng Shi
Keyword(s):  
Dynamic Effect ◽  
Stock Exchanges ◽  
Credit Policy ◽  
Promoting Effect ◽  
Content Type ◽  
Inhibiting Effect ◽  
Policy Interventions ◽  
The Government ◽  
The Impact

PurposeThe role of energy or emission intensive firms face contradictory demands from advancing economic development and environmental improvement and protection and thus require appropriate policy interventions to balance the two needs. China's “Green Credit” policy that restricts loans to energy or emission intensive firms provides an example to study the impact of these kinds of policy intervention.Design/methodology/approachUsing the data of all A-share listed companies in Shanghai and Shenzhen stock exchanges, our paper empirically analyzes the impact of the Green Credit Policy on performance of these energy or emission intensive firms.Findings(1) Using difference-in-difference (DID) and propensity score matching (PSM)-DID method and the dynamic effect method, we found that from 2012 to 2015, the Green Credit Policy had an inhibiting effect on the performance of energy or emission intensive firms. This inhibiting effect was gradually weakened in 2016, and it turned into a positive promoting effect in 2017; (2) The performance's change of these firms around 2015 showed that Green Credit promoted the green transformation and upgrading of these firms; (3) Loans were helpful to the performance of energy or emission intensive firms to some extent, but government subsidies were not significant.Originality/valueThe results suggest that the government, banks and other institutions should dynamically assess the implementation results of the Green Credit Policy on energy or emission intensive firms.

Effect of organisational integrity and leadership behaviour on organisational excellence

2019 ◽  
Vol 27 (4) ◽  
pp. 972-985 ◽  
Author(s):  
Hadi AL-Abrrow ◽  
Hasan Abdullah ◽  
Nadia Atshan
Keyword(s):  
Work Engagement ◽  
Banking Sector ◽  
Survey Design ◽  
Content Type ◽  
Mediating Role ◽  
Internal Customers ◽  
Leadership Behaviour ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to study the effect of organisational integrity and leadership behaviour on organisational excellence by considering the mediating role of work engagement in the banking sector. Design/methodology/approach The quantitative (questionnaire survey) design was used to gather data from 285 employees of the banking sector in Southern and Central Iraq. Findings The findings revealed a partial mediation role of work engagement in the relation between organisational integrity and organisational excellence and a full mediation role between leadership behaviour and organisational excellence. Research limitations/implications Managers need to understand that the impact of their leadership behaviour on organisational outcomes; they also have to understand how people think and what motivates them positively. Therefore, managers must deal with employees as internal customers and realise that their satisfaction and performance is the satisfaction of external customers. Originality/value Few studies have dealt with this topic in the in developing countries such as Iraq. The increases the strength of competition in the Iraqi banking sector pays more attention to the search for excellence. Therefore, more research efforts are needed for achieving organisational excellence in this sector.

Does experiential advertising impact credibility?

2019 ◽  
Vol 37 (1) ◽  
pp. 171-191 ◽  
Author(s):  
Lova Rajaobelina ◽  
Caroline Lacroix ◽  
Anik St-Onge
Keyword(s):  
Undergraduate Students ◽  
Financial Services ◽  
Banking Sector ◽  
Experiential Marketing ◽  
Content Type ◽  
Five Dimensions ◽  
Post Hoc ◽  
The Impact ◽  
Insight Into

Purpose The purpose of this paper is to investigate the impact of five dimensions of experiential advertising (cognitive, emotional, sensory, relational and behavioural) on advertising credibility in the banking sector. Design/methodology/approach A total of 277 undergraduate students were asked to complete a questionnaire after viewing two versions of a bank advertisement. Results were analysed using structural modelling equations (EQS 6.2). Findings Findings show that all dimensions of experiential advertising positively impact advertisement credibility. Cognitive/emotional/sensory advertisements exert the greatest impact, followed by relational and then behavioural advertisements which have only a marginal impact. Post hoc results show that the impact of experiential advertising on advertising credibility varies according to both actor and respondent gender. Originality/value This study enhances the literature on experiential marketing and credibility, especially banking sector advertising, and provides more in-depth insight into the role of respondent and actor gender in influencing responses. Financial services practitioners would be well advised to devote particular attention to the formulation of experiential strategies when developing advertising campaigns.

Examining intellectual capital and competitive advantage relationship

2015 ◽  
Vol 33 (3) ◽  
pp. 376-399 ◽  
Author(s):  
Hardeep Chahal ◽  
Purnima Bakshi
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Banking Sector ◽  
Positive Impact ◽  
Organisational Learning ◽  
Three Dimensions ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the impact of intellectual capital on competitive advantage in banking sector. Further, it also examines the role of innovation as a mediating variable and organisational learning as a moderating variable in intellectual capital and competitive advantage relationship. Design/methodology/approach – Data are collected from 144 branches of 21 public and seven private banks operating in Northern India (Jammu). Three executives (including one manager and two senior employees) from each branch are contacted purposively. Out of 576 questionnaires distributed, 339 questionnaires are returned with response rate of 62.08 per cent. Findings – The study finds that intellectual capital has direct and positive impact on the competitive advantage. It is also verified that innovation fully mediates the relationship between intellectual capital and competitive advantage. Further, the moderating effect of organisational learning on the relationship between intellectual capital and competitive advantage is also confirmed. Research limitations/implications – The study is limited to the banking sector of Jammu city only. Only three dimensions of intellectual capital are considered in the present study. Originality/value – The study represents the relationship between intellectual capital and competitive advantage in banking sector. The results extend the understanding of the role of organisational learning and innovation in creating intellectual capital and building sustainable advantages for organisations.

Economic Significance of Social Capital

2011 ◽  
pp. 46-65 ◽  
Author(s):  
L. Polishchuk ◽  
R. Menyashev
Keyword(s):  
Social Capital ◽  
Collective Action ◽  
Common Good ◽  
Economic Conditions ◽  
Formal Institutions ◽  
Transmission Channels ◽  
Economic Significance ◽  
Bonding And Bridging ◽  
The Impact

The paper deals with economics of social capital which is defined as the capacity of society for collective action in pursuit of common good. Particular attention is paid to the interaction between social capital and formal institutions, and the impact of social capital on government efficiency. Structure of social capital and the dichotomy between its bonding and bridging forms are analyzed. Social capital measurement, its economic payoff, and transmission channels between social capital and economic outcomes are discussed. In the concluding section of the paper we summarize the results of our analysis of the role of social capital in economic conditions and welfare of Russian cities.

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