Do the diversification of income and assets spur bank profitability in Bangladesh? A dynamic panel data analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Jashim Uddin ◽  
Md. Tofael Hossain Majumder ◽  
Aklima Akter ◽  
Rabaya Zaman
Keyword(s):  
Panel Data ◽  
Banking Sector ◽  
Panel Data Analysis ◽  
Positive Association ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Significant Positive Association ◽  
Bank Profitability ◽  
Content Type ◽  
Generalized Methods Of Moments

Purpose This paper aims to explore the effects of bank diversification (i.e. diversification of income and diversification of assets) on Bangladeshi banks’ profitability. Design/methodology/approach Using a dynamic panel data model with system generalized methods of moments, the authors examine an unbalanced panel data from 32 banks spanning 318 bank-year observations from 2007 to 2016. Findings The findings indicate a significant positive association of income diversification and asset diversification on bank profitability. Therefore, the results show that banks can generate profit from diversification of income and diversification of assets. Originality/value One of the rare attempts to investigate the relationship between diversification and profitability in Bangladesh’s banking sector is this report. The authors anticipate the results to have major consequences for Bangladeshi bank regulators and other related economies.

scholarly journals Connotation among Structure, Conduct, and Performance: A Panel Data Analysis of Selected Financial Firms in Pakistan

2017 ◽  
pp. 78-101
Author(s):  
Muhammad Jamil Et al.,
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Panel Data Analysis ◽  
Positive Association ◽  
Dynamic Panel Data ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Financial Firms ◽  
And Performance ◽  
The Relationship

The study of Structure, Conduct, and Performance (SCP) paradigm is important to evaluate the performance of firms. The study scrutinizes the relationship among SCP paradigm of selected financial firms (Banks, Insurance, Modaraba and Exchange companies) in Pakistan. Panel data of 103 financial firms of Pakistan from 2007 to 2015 is employed for this purpose. Various models of panel data have been employed to find the more parsimonious one. It is concluded that there is positive association among SCP using panel data models and dynamic panel data model. It is recommended that all firms are needed to enhance their management regarding expenditures and they also need to increase the number of shareholders to boost the firm’s performance

Does anti-corruption disclosure affect banking performance?

2020 ◽  
Vol 27 (4) ◽  
pp. 1161-1172
Author(s):  
Haitham Nobanee ◽  
Osama F. Atayah ◽  
Charilaos Mertzanis
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Islamic Banks ◽  
Dynamic Panel ◽  
Content Type ◽  
Conventional Banks ◽  
Dynamic Panel Data Analysis ◽  
Conventional And Islamic Banks

Purpose This paper aims to test the levels of anti-corruption disclosure and its implication on the banking performance of both conventional and Islamic banks listed on the Abu Dhabi Securities Exchange and Dubai Financial Market. Design/methodology/approach The authors have used the content analysis to identify the levels of anti-corruption disclosure in the banks’ annual reports. They have also used the two-steps generalized method of moments (GMM) regression applied to dynamic panel data analysis to examine the effect of the anti-corruption disclosure on the banking performance. Findings The empirical results show that the anti-corruption disclosure is at low levels for all banks and conventional and Islamic banks samples. The results also show no significant differences in the anti-corruption disclosure between Islamic and conventional banks. The results of the two-steps GMM regression applied to dynamic panel data analysis show a negative and significant impact of the levels of anti-corruption disclosure on the bank’s performance for both all banks and conventional banks; the results of the dynamic panel data analysis show an insignificant impact of anti-corruption discloser for the Islamic banks' sample. Practical implications The findings recommended a comprehensive framework of anti-corruption disclosure to the central banks and financial market regulators to enhance anti-corruption practices within the financial institutions to increase transparency and enhance their performance. Originality/value Fighting against anti-corruption is essential for financial institutions. This paper is the first study that examined the extent of anti-corruption levels and their effect on banking performance for both Islamic and conventional banks operates in the UAE. The findings help in enhancing reporting practices in terms of anti-corruption to improve transparency and performance in the banking sector.

Foreign direct investment and wage spillover in Thailand

2019 ◽  
Vol 46 (10) ◽  
pp. 1198-1213
Author(s):  
Sasiwimon Warunsiri Paweenawat
Keyword(s):  
Panel Data ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Firm Level ◽  
Content Type ◽  
Domestic Firms ◽  
Dynamic Panel Data Analysis ◽  
Unbalanced Panel Data

Purpose The purpose of this paper is to investigate whether foreign direct investment (FDI) benefitted Thai workers in domestic firms. Design/methodology/approach By utilizing existing firm-level unbalanced panel data from the survey of the Office of Industrial Economics, Ministry of Industry, Thailand, between 2004 and 2013, this study applies dynamic panel data analysis, using the generalized method of moments proposed by Arellano and Bond (1991), to estimate the wage spillover from multinational enterprises (MNEs) to domestic firms in Thailand. Findings The study reveals that there is a positive wage spillover from the presence of MNEs in the industry to domestic firms. Furthermore, a wage spillover also exists in the low-technology industry, as well as in firms located in the Metropolitan and Northern regions. These findings confirmed that FDI offers a significant advantage in Thailand’s labor market. Originality/value This study is the empirical research to utilize existing firm-level unbalanced panel data in Thailand, applying dynamic panel data analysis to data from 2004 to 2013 to estimate the wage spillover from MNEs to domestic firms.

Merton-type default risk and financial performance: the dynamic panel moderation of firm size

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Mushafiq ◽  
Syed Ahmad Sami ◽  
Muhammad Khalid Sohail ◽  
Muzammal Ilyas Sindhu
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Default Risk ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Nonfinancial Firms ◽  
The Relationship

PurposeThe main purpose of this study is to evaluate the probability of default and examine the relationship between default risk and financial performance, with dynamic panel moderation of firm size.Design/methodology/approachThis study utilizes a total of 1,500 firm-year observations from 2013 to 2018 using dynamic panel data approach of generalized method of moments to test the relationship between default risk and financial performance with the moderation effect of the firm size.FindingsThis study establishes the findings that default risk significantly impacts the financial performance. The relationship between distance-to-default (DD) and financial performance is positive, which means the relationship of the independent and dependent variable is inverse. Moreover, this study finds that the firm size is a significant positive moderator between DD and financial performance.Practical implicationsThis study provides new and useful insight into the literature on the relationship between default risk and financial performance. The results of this study provide investors and businesses related to nonfinancial firms in the Pakistan Stock Exchange (PSX) with significant default risk's impact on performance. This study finds, on average, the default probability in KSE ALL indexed companies is 6.12%.Originality/valueThe evidence of the default risk and financial performance on samples of nonfinancial firms has been minimal; mainly, it has been limited to the banking sector. Moreover, the existing studies have only catered the direct effect of only. This study fills that gap and evaluates this relationship in nonfinancial firms. This study also helps in the evaluation of Merton model's performance in the nonfinancial firms.

scholarly journals Service Export Sensitivity to Internet Adoption: Evidence From Dynamic Panel Data Analysis

2020 ◽  
Vol 11 (6) ◽  
pp. 259
Author(s):  
Walid Chatti ◽  
Haitham Khoj
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Internet Adoption ◽  
The Impact ◽  
Dynamic Panel Data Analysis ◽  
Service Export

This study aims to examine the causal linkages relating service exports to internet penetration for 116 countries over the period 2000-2017. Taking into account a wide panel of countries, we apply 2-Step GMM methodology for dynamic panel data models. The results show a bi-directional causality relating service exports to internet adoption for developed countries. For the global panel and developing countries, we find those same results attest a positive relationship between the internet adoption and service exports, but in the opposite way; the impact is very low and not significant. Regarding developing countries, despite the fact that internet positively affects service exports, it is considered less efficient than in developed countries.

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