THE ROLE OF FINANCIAL INSTITUTION MARKETIZATION IN CHINA’S INDUSTRIAL CONTESTABILITY

2018 ◽  
Vol 63 (05) ◽  
pp. 1245-1261
Author(s):  
XIAOHUI HOU ◽  
CHENG LI ◽  
QING WANG
Keyword(s):  
Financial Institutions ◽  
Firm Size ◽  
Conditional Distribution ◽  
Positive Impact ◽  
Financial Institution ◽  
Negative Effect ◽  
Size Of Firms ◽  
Average Size ◽  
Number Of Firms

In this paper, we investigate how the marketization of financial institutions affects China’s industrial contestability. Our empirical results show that a higher degree of marketization of financial institutions is significantly associated with both the operation of more firms and the smaller average size of firms. Moreover, the lower and upper quartiles of the conditional distribution of firm size are all significantly negatively associated with the higher marketization degree of financial institutions, whereas increased financial institution competition and market-oriented allocation of credit funds have greater negative effect on the average size of larger firms, relative to smaller firms. In sum, improvements on the degree of marketization of financial institutions lead to an increase in the number of firms and a reduction in the average size of firms in China’s industry. Therefore, the marketization of financial institutions has a significant positive impact on China’s industrial contestability.

Diversity and the Performance of Selected Financial Institutions of Asia

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Shafaque Fatima ◽  
Saqib Sharif
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Age Diversity ◽  
The Impact ◽  
Nationality Diversity

Linking with the business case for diversity, this study examines whether the top management team (TMT) and the board of directors (BODs) diversity has a positive impact on financial institution (FI) performance in select countries of Asia least researched domain. We use data from 119 financial institutions across Asia for the year 2015, initially 1,447 institutions; however, incomplete data was excluded from final analysis. We use three proxies for diversity, that is, nationality diversity, gender diversity, and age diversity of TMT and BODs. To investigate the impact of TMT and BODs diversity, cross-sectional ordinary least-squares estimation is applied, using Return on Average Assets (ROAA%) as a measure of performance.  We find that nationality diversity and age diversity is positively and significantly related to FIs performance. Our evidence indicates that executives and board members with diverse exposure and younger age improve FIs profitability. However, there is no significant relationship between gender and FIs performance.

The relationship between training satisfaction, organisational citizenship behaviour, and turnover intention

2017 ◽  
Vol 4 (3) ◽  
pp. 267-290 ◽  
Author(s):  
Mumtaz Ali Memon ◽  
Rohani Sallaeh ◽  
Mohamed Noor Rosli Baharom ◽  
Shahrina Md Nordin ◽  
Hiram Ting
Keyword(s):  
Turnover Intention ◽  
Structural Equation ◽  
Oil And Gas ◽  
Positive Impact ◽  
Future Research ◽  
Content Type ◽  
Training Satisfaction ◽  
Negative Effect ◽  
Unexpected Findings

Purpose The purpose of this paper is to explore the role of training satisfaction as a predictor of organisational citizenship behaviour (OCB) and turnover intention. The study further examines the mediating role of OCB between training satisfaction and turnover intention. Design/methodology/approach Data were collected from 409 Malaysian oil and gas (O&G) sector employees. Partial least squares structural equation modelling (PLS-SEM) was used to test the hypotheses in the research model using SmartPLS 3.0. Findings This study highlights the significant positive impact of training satisfaction on OCB and the negative effect on turnover intention. Contrary to expectations, OCB proved to be neither a predictor of turnover intention nor a mediator in the model. Practical implications Although the main aim of this study was to test the theoretically driven hypotheses, the findings have a number of valuable implications for organisations. This study suggests that O&G organisations should focus on increasing employee satisfaction with training to maximise desired workplace attitudes and behaviours. Originality/value This is the first study to explore the causal links between training satisfaction, OCB and turnover intention. Although it has been observed in the past that training does not directly influence turnover intention, the present study indicates that training satisfaction significantly influences turnover intention. Further, this study unexpectedly found no direct relationship between OCB and turnover intention. Also, OCB was not a significant mediator in the present study. These unexpected findings open new avenues for future research, thus representing an important contribution of the present study.

scholarly journals The Embellishment of Bottom Line through Hyperbole of Accrued Earnings: A Case of Deliberate Earnings Management of a Non-bank Financial Institution Enlisted in Dhaka Stock Exchange and Chittagong Stock Exchange

2016 ◽  
Vol 2 (4) ◽  
pp. 42
Author(s):  
Md. Thasinul Abedin
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Stock Exchange ◽  
Loan Loss ◽  
Accounts Receivable ◽  
Loan Loss Provision ◽  
Loan Loss Provisions ◽  
Accrued Earnings ◽  
The Impact

The study has tried to find out the key parameters through which a non-bank financial institution can embellish its earnings. The study has found that loan loss provisions increases in line with the increase in loan and advances and interest suspense. Moreover, non-bank financial institutions always report other assets except accounts receivable figure which foreshadows an existence of deliberate inflation of earnings. The study has found a positive impact of total loan loss provisions and interest suspense on accrued income, a clear message that non-bank financial institutions always report more accrued earnings to safeguard their profit. Increase in accrued income in line with total loan loss provision and interest suspense is also validated by increase in accrued income with respect to other assets except accounts receivable figure even though the impact of other assets on accrued income is insignificant at 5% level, an accounting channel through which excess other assets except accounts receivable would be inflated for excess increase in accrued income. The study has deduced that other assets except accounts receivable is a reserve bank for discretionary inflation of earnings even though it is insignificant. The study has used time series monthly data of International Leasing and Financial Services Limited, a non-bank financial institution from 2009-2015 reported in the Statement of NBDC sent to Bangladesh Bank each month. Two-time series models have been used in this study. The first model has tried to find out the impact of loan and advances, interest suspense, and other assets except accounts receivable on total loan loss provision. In the first model, there is a significant impact of loan and advances, interest suspense, and other assets except accounts receivable on total loan loss provision. The second model has tried to discern the impact of total loan loss provision, interest suspense, and other assets on accrued income along with other independent variables namely-loan and advances, total fixed assets, and operating income. The study has found a significant positive impact of total loan loss provision and interest suspense on accrued income and insignificant impact of other assets except accounts receivable on accrued income. For both models, there is no long-run relationship among the variables.

scholarly journals Effects of Shareholder Groups on the Factoring Institutions Profitability: Evidence from Germany

2015 ◽  
Vol 7 (11) ◽  
pp. 39 ◽  
Author(s):  
Sven Koch
Keyword(s):  
Financial Institutions ◽  
Trade Credit ◽  
Financial Institution ◽  
Growth Potential ◽  
Balance Sheets ◽  
Capital Financing ◽  
Financial Holding ◽  
Administrative Expenses ◽  
Market Consolidation

<p>The significant role of trade credit in financing large companies and small and medium-sized enterprises leads to high stocks of account receivables within the balance sheets of German firms. As a result the importance of working capital financing is growing and the demand for accounts receivables financing (factoring) increases. The German factoring industry is dominated by banks. In addition to bank-owned financial institutions, many non-bank financial institutions are represented on the market. In a context of a continuing market consolidation, it is of interest whether there are differences in terms of profitability depending on shareholder groups (financial institution, non-financial institution, non holding). The German factoring market is an extremely growing market with further growth potential in an ongoing market consolidation. A further market consolidation is probable because the administrative expenses of small financial institutions and institutions without any holding are high. However, subsidiaries of a financial holding or non-financial holding show significantly lower administrative expenses. The results show that the profitability of the financial institutions is significantly influenced by the shareholders and the size of the institution. Financial institutions of a financial holding (bank-owned) are significantly less profitable than institutions without any holding or institutions of a non-financial holding. A similar picture emerges in the achieved margins of factors.</p>

scholarly journals Menilik Urgensi Penerapan Pembiayaan Akad Salam pada Bidang Pertanian di Lembaga Keuangan Syariah di Indonesia

2018 ◽  
Vol 8 (2) ◽  
pp. 88
Author(s):  
Widiana Widiana ◽  
Arna Asna Annisa
Keyword(s):  
Qualitative Research ◽  
Financial Institutions ◽  
Research Finding ◽  
Agricultural Development ◽  
Positive Impact ◽  
Financial Institution ◽  
Agricultural Product ◽  
Islamic Banking ◽  
Financing System ◽  
Islamic Financial Institutions

The financing of salam covenant is one of sharia banking products that can be used in the field of agriculture, but this has not been used in sharia financial institutions in Indonesia. Covenant of salam has strategic potential for agricultural development. This paper aims to illustrate the potential of using salam covenant in financing which is conducted by customer and how the challenges of implementation of salam  covenant in Islamic financial institutions. This is a descriptive qualitative research. In Indonesia, both Islamic banking and Baitul Maal Wattamwil have not applied this contract, related to some risks from salam financing. Sharia financial institutions needs a strategy in order to feel the benefits of providing salam. This article describes the practice of financing system of profitable covenant agreement for the sharia financial institution and the community. The research finding showed that by optimizing salam covenant financing, it can give positive impact to farmers that is in capital aspect to develop agricultural product. Pembiayaan akad salam merupakan salah satu produk perbankan syariah yang dapat digunakan dalam bidang pertanian, namun hal ini belum digunakan dalamLembaga Keuangan Syariah (LKS) di Indonesia. Akad salam memiliki potensistrategis terhadap pengembangan bidang pertanian. Penelitian ini bertujuan untuk menggambarkan potensi penggunaan akad salam dalam pembiayaan yang dilakukan oleh nasabah dan bagaimana tantangan atas penerapan pembiayaan akad salam di lembaga keuangan syariah. Tulisan ini berpijak pada penelitian kualitatif dengan metode deskriptif analisis dari berbagai literatur. Di Indonesia, baik perbankan syariah maupun Baitul Maal Wattamwil (BMT) belum menerapkan akad ini, terkait beberapa risiko dari pembiayaan salam. Lembaga keuangan syariah membutuhkan strategi agar dapat merasakan keuntungan dari penyediaan produk salam. Dalam tulisan ini dijelaskan praktik sistem pembiayaan akad salam yang menguntungkan bagi lembaga keuangan syariah dan masyarakat. Hasil yang diperoleh menunjukkan bahwa dengan optimalisasi pembiayaan akad salam dapat memberikan dampak positif terhadap para petani yaitu pada aspek permodalan untuk mengembangkan produk pertanian 

scholarly journals DETERMINANT EFFICIENCY OF FINANCIAL INSTITUTIONS IN EMERGING MARKET

2019 ◽  
Vol 12 (2) ◽  
pp. 165
Author(s):  
Suwinto Johan
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Capital Structure ◽  
Financial Institutions ◽  
Firm Size ◽  
Financial Institution ◽  
Emerging Market ◽  
Financial Ratios ◽  
Financial Industry ◽  
Finance Company

<p>The aim of this research is to analyze the determinants of non-bank financial institution efficiency. The non-bank financial industry is one of the main contributors to Indonesia economic growth during the last 15 years. The non-bank financial industry will the consumer finance company industry. The panel data used in this research is from 2001-2016.The non-bank financial industry is also measured as one the fastest raising industries in the last 16 years. Thesixmain financial ratios and related industry alliance impact the determinants of finance companies’ efficiency. The financial ratios are firm size, capital structure, equity, asset ratio, income to total assets and cost to total assets. The empirical results show that the determinants of non-bank financial institution are income to total assets and cost to total assets. </p>

scholarly journals Peranan PT. Permodalan Ekonomi Rakyat (PER) Dalam Peningkatan Ekonomi Masyarakat Di Provinsi Riau

2020 ◽  
Vol 8 (1) ◽  
pp. 41-53
Author(s):  
Fahrial ◽  
Rini Fatriani ◽  
Jenita
Keyword(s):  
Positive Impact ◽  
Financial Institution ◽  
Complex Problem ◽  
Economic Recovery ◽  
Economic Factors ◽  
The People ◽  
Multiplier Effect ◽  
Quality Product ◽  
Economic Improvement

PT. PER as society wervice institution and PAD source in the economic crisis condition still exist and felt its role. The people economic improvement faces complex problem. The activities in the real sectors grow and will need huge capital. The role of PT. PER  will be importanc in improving the society economic. The society economic development and improvent faces complex  problem such as : the difficulty in accessing capital, the low  of human resoureces quality, the limited technology mastering, the wenk management (financial and marketing), the low quality product and the  weak institution and the institution arrangement in developing and empowering the people economic still non optimum. In the problems formulation, the writer discloseded qualitative and quatitative data. The results tried to describe the phenomenon about  the PT. PER roles in improving the society economic at Riau Province. The results showed that during four years operation, ther is credit channeling improvement from year to year.  PT. Permodalan Ekonomi Rakyat (PER) able to be “agent of development” in the economic  recovery, able to distribute economic factors  more evenly to people and has big multiplier effect. With PT. PER presence, the micro, small, middle business and cooperative and financial institution of Bank  (BPR/S) and  micro financial institution (UEK/D-SP), BMT) farmer group and other that formerly difficult to obtained business capital able to access PT. PER.The othe positive impact is PT. PER also contribute in illuminating the society attitude become bank minded.

PENGARUH PROFITABILITAS, UMUR, DAN UKURAN PERUSAHAAN TERHADAP STRUKTUR MODAL

2015 ◽  
Vol 11 (2) ◽  
pp. 147
Author(s):  
Jefrianus Mau ◽  
Indri Prasasyaningsih ◽  
Putriana Kristanti
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Firm Size ◽  
Positive Impact ◽  
Stock Exchange ◽  
Firm Age ◽  
Independent Variables ◽  
Negative Effect ◽  
Size Firm ◽  
The Capital Structure

; "> This study aims to examine the influence of profitability, age, and size of the company on the capitalstructure. Population in this research is the company's property and real estate listed on theIndonesia Stock Exchange in 2010-2014. There are 24 companies with the data for 5 years as manyas 120 data that meet the criteria of the study sample that has been set. Variables used in this studywere independent variables consisting of profitability as measured by ROE, firm size, firm age andthe dependent variable is capital structure. These results indicate that profitability as measured byROE negative effect on the capital structure, age did not affect the company's capital structure andthe size of the company's positive impact on the capital structure.Keywords: profitability, firm’s age, firm’s size, capital structure

scholarly journals Climate Changes Challenges to the Management of Mediterranean Montado Ecosystem: Perspectives for Use of Precision Agriculture Technologies

Agronomy ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 218 ◽  
Author(s):  
João Serrano ◽  
Shakib Shahidian ◽  
José Marques da Silva ◽  
Luís Paixão ◽  
Emanuel Carreira ◽  
...  
Keyword(s):  
Precision Agriculture ◽  
Positive Impact ◽  
Floristic Composition ◽  
Tree Canopy ◽  
Spatial And Temporal Variability ◽  
Pastoral System ◽  
Negative Effect ◽  
Vegetative Cycle ◽  
Montado Ecosystem

Montado is an agro-silvo-pastoral system characterized by a high complexity as a result of the interactions between climate, soil, pasture, trees, and animals. It is in this context that management decisions must be made, for example with respect to soil fertilization, grazing, or animal supplementation. In this work, the effect of the tree canopy on the spatial and temporal variability of the soil and productivity, quality, and floristic composition of the pasture was evaluated. Precision agriculture (PA) technologies for monitoring soil and pasture were also evaluated. The study was carried out between October 2015 and June 2018 in an experimental field of 2.3 ha. The results showed: (i) The positive impact of trees and animal grazing on soil fertility; (ii) the influence of inter-annual variability of precipitation on the pattern of pasture vegetative cycle; (iii) the positive effect of trees in pasture quality; (iv) the negative effect of trees in pasture productivity; (v) the role of pasture floristic composition as an indicator of soil limitations or climatic changes; (vi) the potential of technologies associated with the concept of PA as express tools to decision making support and for the optimization of the herbaceous stratum and the dynamic management of grazing in this ecosystem in a holistic and sustainable form.

Shadow Economies: Size, Causes, and Consequences

2000 ◽  
Vol 38 (1) ◽  
pp. 77-114 ◽  
Author(s):  
Friedrich Schneider ◽  
Dominik H Enste
Keyword(s):  
Developing Countries ◽  
Shadow Economy ◽  
Driving Forces ◽  
Positive Impact ◽  
Oecd Countries ◽  
Gdp Growth ◽  
State Regulations ◽  
Shadow Economies ◽  
Negative Effect ◽  
Average Size

Using various methods, the size of the shadow economy in 76 developing, transition, and OECD countries is estimated. Average size varies from 12 percent of GDP for OECD countries, to 23 percent for transition countries and 39 percent for developing countries. Increasing taxation and social security contributions combined with rising state regulations are driving forces for the increase of the shadow economy, especially in OECD countries. According to some findings, corruption has a positive impact on the size of the shadow economy, and a growing shadow economy has a negative effect on official GDP growth.

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