scholarly journals The Role of Noan Performing Financing (NPF) as A Mediator for The Relationship Between Operating Expenses and Operating Income (BOPO) on The Performance of Islamic Banks in Indonesia

2021 ◽  
Vol 5 (1) ◽  
pp. 110
Author(s):  
Julia Safitri ◽  
Intan Shaferi ◽  
Ahmad Ershaid Sami Nusair ◽  
Muhamad Arief Affandi
Keyword(s):  
Credit Risk ◽  
Time Series Data ◽  
Operating Costs ◽  
Series Data ◽  
Bank Performance ◽  
Cost Ratio ◽  
Analysis Tool ◽  
Cross Sectional ◽  
Operating Income ◽  
The Relationship

This study aims to examine and analyze the relationship between the effect of operating costs and operating income on bank performance which is mediated by credit risk. Using data on Islamic banking companies listed on the IDX in 2012-2019. The methodology in this study uses secondary data. Data specification is panel data (pooled data) which is actually a combination of data consisting of time series data and cross-sectional data. The analysis tool used is SEM-PLS with the WarpPLS 7.0 application. The results of this study indicate that credit risk can partially mediate the effect of operating costs and operating income on bank performance. This research is successful in proving that the operational cost ratio is used to measure the level of efficiency and ability of a bank in conducting its operations. The smaller this ratio means the more efficient the operational costs borne by the bank concerned so that the possibility of a bank in a less problematic condition. The smaller this ratio, the better the bank's performance.

scholarly journals Capital structure and profitability: An empirical study of South African banks

2016 ◽  
Vol 14 (1) ◽  
pp. 8-19 ◽  
Author(s):  
Kudzai Raymond Marandu ◽  
Athenia Bongani Sibindi
Keyword(s):  
Capital Structure ◽  
Credit Risk ◽  
South African ◽  
Time Series Data ◽  
Emerging Market ◽  
Strong Relationship ◽  
Capital Adequacy ◽  
Series Data ◽  
Bank Capital ◽  
The Relationship

The bank capital structure debacle in the aftermath of the 2007-2009 financial crises continues to preoccupy the minds of regulators and scholars alike. In this paper we investigate the relationship between capital structure and profitability within the context of an emerging market of South Africa. We conduct multiple linear regressions on time series data of big South African banks for the period 2002 to 2013. We establish a strong relationship between the ROA (profitability measure) and the bank specific determinants of capital structure, namely capital adequacy, size, deposits and credit risk. The relationship exhibits sensitivity to macro-economic shocks (such as recessions), in the case of credit risk and capital but is persistent for the other determinants of capital structure.

Globalization and extra-parliamentary politics in an era of democracy

2011 ◽  
Vol 3 (2) ◽  
pp. 253-278 ◽  
Author(s):  
Moises Arce ◽  
Wonik Kim
Keyword(s):  
Latin America ◽  
East Asia ◽  
Time Series Data ◽  
Series Data ◽  
Cross Sectional ◽  
Political Liberalization ◽  
Full Force ◽  
The Relationship ◽  
Parliamentary Politics ◽  
Protest Activity

Two currents can be distinguished in the literature regarding the domestic consequences of globalization. One perspective holds that globalization depoliticizes extra-parliamentary protest activity despite the presence of democracy. Another perspective suggests that globalization has contributed to the repoliticization of protest, especially when democracy is present. Using cross-sectional time-series data in a global sample for the 1970–2006 period, the paper examines the effect of globalization on extra-parliamentary protest activity in the context of democracy. The paper further tests these relationships cross-regionally comparing East Asia with Latin America – arguably the two regions in the world where dual transitions to economic and political liberalization have been in full force since 1970s. The results reveal distinct patterns of protest activity cross-regionally, whereby East Asia approximates the depoliticization trend from the global sample. In contrast, the results for Latin America provide confirming evidence for the repoliticization perspective. These findings remain robust across a number of control variables, and different measures of democracy and estimation techniques. Overall, the paper shows that democracy influences the relationship between globalization and extra-parliamentary protest activity – a relationship that up to now has remained systematically untested.

scholarly journals The Moderating Role of Institutional Quality in Developed Countries on the Strategic Asset Seeking (SAS) Inward FDI from China: A De-globalization Perspective

2021 ◽  
Author(s):  
Saif Ur Rahman ◽  
Zhao Shurong
Keyword(s):  
Time Series Data ◽  
Institutional Quality ◽  
Developed Countries ◽  
Series Data ◽  
Host Countries ◽  
Cross Sectional ◽  
Strategic Assets ◽  
Managerial Implications ◽  
The Relationship

<p><b>Purpose</b> –This study investigates how institutional quality in developed markets moderate the relationship between the strategic assets (SAs) and the inward foreign direct investment (IFDI) coming from emerging markets (EM) firms. </p> <p> <b>Design/methodology/approach</b> – The authors build upon resource based theory and institutional theory to investigate the impacts of Institutional frameworks on the strategic asset seeking (SAS) IFDI from China in 31 developed countries (OECD) for a period from 2013-2018. A stepwise general linear regression is used to test the hypothesis. The study uses process macros to validate the moderation results obtained from regression modelling. We also conduct multiple robustness tests to ensure that the data is free from idiosyncrasies related to time series data.</p> <p><b>Findings</b> – The results demonstrate that the institutional quality in developed countries is not associated with inward FDI from China; however, it negatively moderates the relationship between SAs and IFDI. The results also indicate that IFDI from China is strongly associated with SAs and insignificantly associated with natural resource endowments in host countries. </p> <p><b>Practical Implications</b> – The study has managerial implications for EM firm’s SAS drive during the current wave of anti-globalization. </p> <p><b>Originality/value</b> – The role of institutional quality on IFDI disaggregated by the sectors of the economy is least understood in literature. Our study attempts to bridge this gap by bringing a cross sectional view of Institutional quality at various levels— while interacting with SAS IFDI, at a time, when the World is heading towards de-globalization. </p><br>

scholarly journals The Impact of Renewable Energy Sources on Financial Development, and Economic Growth: The Empirical Evidence from an Emerging Economy

Energies ◽  
2021 ◽  
Vol 14 (23) ◽  
pp. 8033
Author(s):  
David Guan ◽  
Ubaldo Comite ◽  
Muhammad Safdar Sial ◽  
Asma Salman ◽  
Boyao Zhang ◽  
...  
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial Development ◽  
Time Series Data ◽  
Renewable Energy Sources ◽  
Series Data ◽  
Cross Sectional ◽  
Renewable Sources ◽  
The Impact ◽  
The Relationship

Developing energy from renewable sources and modernizing the energy system are critical components of China’s efforts to combat climate change. Policymakers and authorities have made significant attempts to bring them. However, one of the major impediments to China’s energy revolution is financial limitations, which are inextricably linked to the country’s economic growth. The present research paper intends to investigate the relationship between economic growth and sustainable financial development on the use of energy from renewable sources in both the short and long run in the context of China. To achieve this, the researchers have utilized the panel data consisting of 10 years from 2011 to 2020. When compared to cross-sectional and time-series data samples, the panel data model offers many benefits. For starters, the panel data includes information on the passage of time and the cross-sectional area. Another benefit of using panel-data models with a larger degree of freedom is that they provide more stable and reliable estimates across short periods across cross-sections. In the case of the short run, there is a positive relationship between economic and financial development and the use of energy from renewable sources in the context of all of China. While in the case of long-term effects, the results indicate the adverse impact of financial development on the use of energy from renewable sources in the western regions of China. These results were deduced using the causality test Granger proposed to determine the path of the causal relationship and the direction of the relationship between the variables. These results indicated that the relationship between economic and financial development in east China was unidirectional, and the nature of the underlying relationship was causal. Meanwhile, in east and west China, economic development in China as a whole has been unidirectionally increasing energy from renewable sources. Our empirical findings suggest many strategies for promoting the growth of energy from renewable sources.

scholarly journals An Analysis of Network Structure in Mazda’s Yokokai using the DEC Spatial Model

2021 ◽  
Vol 15 ◽  
pp. 74-78
Author(s):  
T. Ito ◽  
S. Tagawa ◽  
S. Matsuno ◽  
Y. Uchida ◽  
Rajiv Mehta ◽  
...  
Keyword(s):  
Time Series ◽  
Spatial Model ◽  
Euclidean Distance ◽  
Time Series Data ◽  
Three Dimensional ◽  
Series Data ◽  
Future Research ◽  
Cross Sectional ◽  
Corporate Group ◽  
The Relationship

By examining networks is possible to understand the nature of inter-firm relationships among organizational entities in any given corporate group, such as Toyota’s, Nissan’s or Mazda’s Keiretsu. Recently, a new three-dimensional spatial model has been developed that allows organizational scholars to ascertain the structure of a corporate group, the position of the individual firms, and the determinants of the firm performance. This new spatial paradigm –called the DEC spatial model– composed of degree, effective size and capacity that assessed the relationship between Euclidean distance and sales. Although it advances our understanding of networks, the bulk of the research is based on cross-sectional data, it is not possible ascertain the real nature of the relationship between the distance and sales. Instead, the analysis of networks requires using time series data as all the corporate members of a network are ongoing- concerns. To augment our understanding of the nature of inter-firms networks, the interrelationship between distance and sales is examined using time series data drawn from Mazda’s Yokokai in 1986, 2004 and 2005. More specifically, in this paper the data on transactions were collected and used to calculate the Euclidean distance using the DEC spatial model. The position and its determinants of all individual firms are identified and the trend of structure changes is discussed. Based on the findings of offered and avenues of future research are suggested.

scholarly journals The Moderating Role of Institutional Quality in Developed Countries on the Strategic Asset Seeking (SAS) Inward FDI from China: A De-globalization Perspective

2021 ◽  
Author(s):  
Saif Ur Rahman ◽  
Zhao Shurong
Keyword(s):  
Time Series Data ◽  
Institutional Quality ◽  
Developed Countries ◽  
Series Data ◽  
Host Countries ◽  
Cross Sectional ◽  
Strategic Assets ◽  
Managerial Implications ◽  
The Relationship

<p><b>Purpose</b> –This study investigates how institutional quality in developed markets moderate the relationship between the strategic assets (SAs) and the inward foreign direct investment (IFDI) coming from emerging markets (EM) firms. </p> <p> <b>Design/methodology/approach</b> – The authors build upon resource based theory and institutional theory to investigate the impacts of Institutional frameworks on the strategic asset seeking (SAS) IFDI from China in 31 developed countries (OECD) for a period from 2013-2018. A stepwise general linear regression is used to test the hypothesis. The study uses process macros to validate the moderation results obtained from regression modelling. We also conduct multiple robustness tests to ensure that the data is free from idiosyncrasies related to time series data.</p> <p><b>Findings</b> – The results demonstrate that the institutional quality in developed countries is not associated with inward FDI from China; however, it negatively moderates the relationship between SAs and IFDI. The results also indicate that IFDI from China is strongly associated with SAs and insignificantly associated with natural resource endowments in host countries. </p> <p><b>Practical Implications</b> – The study has managerial implications for EM firm’s SAS drive during the current wave of anti-globalization. </p> <p><b>Originality/value</b> – The role of institutional quality on IFDI disaggregated by the sectors of the economy is least understood in literature. Our study attempts to bridge this gap by bringing a cross sectional view of Institutional quality at various levels— while interacting with SAS IFDI, at a time, when the World is heading towards de-globalization. </p><br>

scholarly journals Family business definition: a matter of concern or a matter of convenience?

2014 ◽  
Vol 11 (2) ◽  
pp. 274-280 ◽  
Author(s):  
Shehabaddin Abdullah A. Al-Dubai ◽  
Ku Nor Izah Ku Ismail ◽  
Noor Afza Amran
Keyword(s):  
Family Business ◽  
Time Series Data ◽  
Emerging Market ◽  
Series Data ◽  
Family Ownership ◽  
Cross Sectional ◽  
Different Types ◽  
Industry Sectors ◽  
The Impact ◽  
The Relationship

This paper attempts to examine the impact of adopting multiple family ownership cut-offs in defining family businesses, family ownership measurements, and conducting different types of analyses. For achieving this goal we have focus on the relationship between family ownership and firm performance (ROA) in the context of emerging market (Saudi Arabia), controlling for firm’s debt, age, size and industry sectors. With three family ownership cut-offs: 5%, 10%, and 20% and two type of analysis (cross-sectional and cross-sectional and time-series data) as well as two types of family ownership measures (ratio and dummy), we fond that the relationship between the two variables is consistent despite of the level of family ownership cut-off, analysis type, and measurement. This indicates that family business definition is not a matter of concern for researchers, but rather a matter of convenience.

scholarly journals Panel Econometric Analysis on Mobile Payment Transactions and Traditional Banks Effort toward Financial Accessibility in Sub-Sahara Africa

2020 ◽  
Vol 12 (3) ◽  
pp. 895 ◽  
Author(s):  
Cephas Paa Kwasi Coffie ◽  
Hongjiang Zhao ◽  
Isaac Adjei Mensah
Keyword(s):  
Time Series Data ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Series Data ◽  
Mobile Payment ◽  
Cross Sectional ◽  
Mobile Payments ◽  
Long Run

The financial landscape of sub-Sahara Africa is undergoing major changes due to the advent of FinTech, which has seen mobile payments boom in the region. This paper examines the salient role of mobile payments in traditional banks’ drive toward financial accessibility in sub-Sahara Africa by using panel econometric approaches that consider the issues of independencies among cross-sectional residuals. Using data from the World Development Index (WDI) 2011–2017 on 11 countries in the region, empirical results from cross-sectional dependence (CD) tests, panel unit root test, panel cointegration test, and the fully modified ordinary least squares (FMOLS) approach indicates that (i) the panel time series data are cross-sectionally independent, (ii) the variables have the same order of integration and are cointegrated, and (iii) growth in mobile payment transactions had a significant positive relationship with formal account ownership, the number of ATMs, and number of new bank branches in the long-run. The paper therefore confirms that the institutional structure of traditional banks that makes them competitive, irrespective of emerging disruptive technologies, has stimulated overall financial accessibility in the region leading to overall sustainable growth in the financial sector. We conclude the paper with feasible policy suggestions.

An easy way to create duration variables in binary cross-sectional time-series data

2020 ◽  
Vol 20 (4) ◽  
pp. 916-930
Author(s):  
Andrew Q. Philips
Keyword(s):  
Time Series ◽  
Missing Data ◽  
Time Series Data ◽  
Series Data ◽  
Duration Dependence ◽  
Cross Sectional ◽  
Common Solution ◽  
The Common

In cross-sectional time-series data with a dichotomous dependent variable, failing to account for duration dependence when it exists can lead to faulty inferences. A common solution is to include duration dummies, polynomials, or splines to proxy for duration dependence. Because creating these is not easy for the common practitioner, I introduce a new command, mkduration, that is a straightforward way to generate a duration variable for binary cross-sectional time-series data in Stata. mkduration can handle various forms of missing data and allows the duration variable to easily be turned into common parametric and nonparametric approximations.

Testing Structural Break in the Relationship Between Exchange Rate and Macroeconomic Variables

2019 ◽  
Vol 23 (4) ◽  
pp. 442-453 ◽  
Author(s):  
Saidia Jeelani ◽  
Joity Tomar ◽  
Tapas Das ◽  
Seshanwita Das
Keyword(s):  
Exchange Rate ◽  
Structural Breaks ◽  
Time Series Data ◽  
Structural Break ◽  
Series Data ◽  
Ripple Effect ◽  
Macroeconomic Factors ◽  
Parameter Instability ◽  
Macroeconomic Variables ◽  
The Relationship

The article aims to study the relationship between those macroeconomic factors that the affect (INR/USD) exchange rate (ER). Time series data of 40 years on ER, GDP, inflation, interest rate (IR), FDI, money supply, trade balance (TB) and terms of trade (ToT) have been collected from the RBI website. The considered model has suggested that only inflation, TB and ToT have influenced the ER significantly during the study period. Other macroeconomic variables such as GDP, FDI and IR have not significantly influenced the ER during the study period. The model is robust and does not suffer from residual heteroscedasticity, autocorrelation and non-normality. Sometimes the relationship between ER and macroeconomic variables gets affected by major economic events. For example, the Southeast Asian crisis caused by currency depreciation in 1997 and sub-prime loan crisis of 2008 severely strained the national economies. Any global economic turmoil will affect different economic variables through ripple effect and this, in turn, will affect the ER of different economies differently. The article has also diagnosed whether there is any structural break or not in the model by applying Chow’s Breakpoint Test and have obtained multiple breaks between 2003 and 2009. The existence of structural breaks during 2003–2009 is explained by the fact that volume of crude oil imported by India is high and oil price rise led to a deficit in the TB alarmingly, which caused a structural break or parameter instability.

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