scholarly journals THE CONVERGENCE TEST OF INDONESIA BANKING INEFFICIENCY: DO MACROECONOMIC INDICATORS MATTER?

2018 ◽  
Vol 21 (1) ◽  
pp. 123-137
Author(s):  
Rudi Purwono ◽  
Mohammad Zeqi Yasin
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Gross Domestic Product ◽  
Global Financial Crisis ◽  
Fiscal Stimulus ◽  
Panel Data Estimation ◽  
Convergence Test ◽  
Macroeconomic Indicators ◽  
The Global Financial Crisis ◽  
Data Estimation

This paper analyzes the inefficiency convergence of Indonesian banks using StochasticFrontier Analysis and panel data estimation, covering the period after financial crisis2008 until 2017. This paper also investigates the determinant of this inefficiencyimplying the convergence. To estimate the inefficiency rate, proxied by price ofloan, this paper uses three inputs including price of labor, price capital, and price offund. Our analysis shows that during 2008-2017 the inefficiency score converged ata speed of 26.2 %. Furthermore inflation, gross domestic product, and exchange ratesignificantly affect the growth of inefficiency convergence. This paper contributes tothe empirical literatures particularly on banking research. Overall, the findings implythat policymakers can mitigate the effects of the global financial crisis by loweringinterest rate, providing fiscal stimulus, as well as protecting the poorest from financialdeterioration.

scholarly journals Hiving off the non-essential: analysing which public organizations outsource administrative overhead

2017 ◽  
Vol 85 (2) ◽  
pp. 228-246
Author(s):  
Jan Boon ◽  
Koen Verhoest ◽  
Bruno De Borger
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Private Sector ◽  
Global Financial Crisis ◽  
Public Organizations ◽  
Tobit Model ◽  
Effect Sizes ◽  
Organizational Size ◽  
The Global Financial Crisis ◽  
Insight Into

This study contributes to our understanding of the characteristics of public organizations that are more likely to outsource administrative overhead. Despite the climate of ongoing crisis that urges public organizations to focus their resources on core tasks, little is known about the characteristics of organizations that hive off the delivery of non-essential administrative overhead processes to the private sector. This study runs a panel data Tobit model to test whether different effect sizes of structural, institutional and political characteristics are found regarding the probability of outsourcing and the degree of outsourcing of administrative overhead. We find that organizational size, formal autonomy, inertia and time matter for understanding the outsourcing of public organizations. Points for practitioners Across the globe, governments have turned to a rationalization of administrative overhead in response to austerity demands posed by the global financial crisis. The present study shows that large differences exist between organizations in terms of their propensity to turn to the private sector – one of the classic recipes for achieving efficiency gains – for the delivery of administrative overhead, and helps practitioners gain insight into the determinants of administrative overhead outsourcing.

Migration patterns in a remittances dependent economy: Evidence from Tajikistan during the global financial crisis

2014 ◽  
Vol 7 (2) ◽  
pp. 190-202 ◽  
Author(s):  
Alexander M. Danzer ◽  
Oleksiy Ivaschenko
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Economic Recession ◽  
Destination Country ◽  
Data Set ◽  
Migration Patterns ◽  
The Global Financial Crisis ◽  
The Cost ◽  
Remarkable Reduction

Before the global financial crisis, Tajikistan was a major labour exporting and the world’s most remittances-dependent country. Remittances had contributed to a remarkable reduction in poverty. This paper exploits a new panel data set spanning the years 2007 to 2009 in order to investigate the effect of the financial crisis on migration and remittances patterns. Expectedly, the economic recession in the main destination country Russia affected Tajikistan through declining remittances. Owing to low diversification in pre-crisis migration patterns, the dependency on sending migrants to Russia and the migration stock there grew. In combination with increased migration risk this suggests that migrants bear part of the cost of the crisis.

scholarly journals A Panel Data Analysis on Sustainable Economic Growth in India, Brazil, and Romania

2020 ◽  
Vol 13 (8) ◽  
pp. 170 ◽  
Author(s):  
Batrancea Ioan ◽  
Rathnaswamy Malar Kumaran ◽  
Batrancea Larissa ◽  
Nichita Anca ◽  
Gaban Lucian ◽  
...  
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data ◽  
Financial Crisis ◽  
Co2 Emissions ◽  
Global Financial Crisis ◽  
Panel Data Analysis ◽  
Bank Credit ◽  
The Global Financial Crisis ◽  
Sustainable Economic Growth

The study investigated the impact of factors such as non-performing loans, CO2 emissions, bank credit, and inflation on the variable sustainable economic growth for India, Brazil, and Romania during the period 2005–2017, through a panel data analysis. Specifically, we investigated the timeline before, during, and after economic turmoil, with a special focus on the global financial crisis. Our empirical results are valuable for both developing and developed nations. As a first result, we showed that CO2 emissions increased the level of economic growth, but in this context, authorities should design suitable policies to limit its impact on the overall society. In addition, a single supervision mechanism increased the level of sustainable economic growth. Last but not the least, the period during and after the global financial crisis, sustainable economic growth decreased under the influence of bank credit, inflation, and non-performing loans. Within this framework, public authorities are called to design efficient economic, fiscal, and monetary policies.

scholarly journals The Determinants of Credit Risk: An Evidence from ASEAN and GCC Islamic Banks

2020 ◽  
Vol 13 (5) ◽  
pp. 89 ◽  
Author(s):  
Faridah Najuna Misman ◽  
M. Ishaq Bhatti
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Credit Risk ◽  
Global Financial Crisis ◽  
Generalized Least Squares ◽  
Capital Requirements ◽  
Risk Level ◽  
Islamic Banks ◽  
Regulatory Capital ◽  
The Global Financial Crisis

In less than a decade, the Islamic Banking (IB) industry has become an essential part of the global financial system. During the last ten years, the IB industry has witnessed changes in economic conditions and proved to be resilient during the periods of financial crisis. This paper aims to examine the important issues related to credit risk in selected Islamic banks in nine countries from Association of South East Asian Nations (ASEAN) and Gulf Cooperation Council (GCC) regions. It employs the generalized least squares panel data regression, to estimate the ratio of non-performance financing to total financing as dependent variables and bank specific variables (BSV) to determine the credit risk. It uses 12 years of unbalanced panel data from 40 different Islamic banks. The overall findings show that financing quality has a significant positive effect on credit risk. It is observed that the larger IBs owned more assets with lower credit risk compared to smaller banks. The bank’s age is also an important factor influencing the credit risk level. Moreover, regulatory capital significantly reduces the credit risk exposure adherence to the minimum regulatory capital requirements which help IBs to manage their credit risk exposures. It was also observed that IBs were not affected by the global financial crisis due to less credit risk compared to the conventional banks.

Global Financial Crisis, Institutional Ownership, and the Earnings Informativeness of Income Smoothing

2017 ◽  
Vol 35 (1) ◽  
pp. 53-78 ◽  
Author(s):  
Ching-Lung Chen ◽  
Pei-Yu Weng ◽  
Yu-Chih Lin
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Institutional Investors ◽  
Global Financial Crisis ◽  
Institutional Ownership ◽  
Income Smoothing ◽  
Earnings Informativeness ◽  
The Global Financial Crisis ◽  
Unbalanced Panel Data

This study uses unbalanced panel data to construct the empirical regressions, and examines the role of the global financial crisis and institutional ownership on the earnings informativeness of firm with income smoothing. The result reveals that the earnings informativeness of income smoothing decreased after the occurrence of the crisis. High institutional ownership also reduces the informativeness of earnings for firms with income smoothing and supports the institutional investors’ opportunism hypothesis. Yet, this result is prominent when the institutional ownership is held by the qualified foreign rather than local institutional investors. This study implements several diagnostic checks and demonstrates that the results are robust to various specifications.

scholarly journals Fiscal Stimulus Impact on Firms' Profitability During the Global Financial Crisis

2018 ◽  
Vol 18 (251) ◽  
pp. 1
Author(s):  
Carolina Correa-Caro ◽  
Leandro Medina ◽  
Marcos Poplawski-Ribeiro ◽  
Bennett Sutton
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Fiscal Stimulus ◽  
The Global Financial Crisis

Leverage, investment, and recovery from a financial crisis: the role of debt overhang

2019 ◽  
Vol 37 (1) ◽  
pp. 143-159
Author(s):  
Andreas Kuchler
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Slow Recovery ◽  
Content Type ◽  
Debt Overhang ◽  
Macroeconomic Volatility ◽  
The Global Financial Crisis

Purpose Private investment in advanced economies contracted sharply during the downturn that followed the global financial crisis. A substantial debt overhang has been one proposed explanation for this development. This paper evaluates the role of debt overhang for the slow recovery in investment in Denmark, a country in which levels of private debt rapidly increased before the crisis. Design/methodology/approach Based on firm-level panel data, this paper evaluates the links between debt and investment dynamics for individual firms during the downturn that followed the global financial crisis. Findings High leverage contributed to a slow recovery in investment during the downturn that followed the financial crisis, in particular for small and medium-sized enterprises. The effect cannot solely be attributed to mean reversion in investment. Research limitations/implications Results point to the existence of a separate leverage or “balance sheet” channel with implications for macroeconomic volatility and financial stability. Practical implications Macroprudential or microprudential measures to counteract the build-up of excess leverage during upswings may contribute to reducing macroeconomic volatility and improving financial stability. Originality/value In contrast to previous studies, the panel dimension of data is used to take mean reversion in investment into account. The large, nationally representative panel data set allows to assess the macroeconomic relevance of the results, as well as enables subsample splits which are used to gain insights into potential mechanisms through which debt overhang impacts investment.

Global Financial Crisis

2018 ◽  
Author(s):  
John Quiggin
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Great Recession ◽  
International Institutions ◽  
Global Financial Crisis ◽  
Fiscal Consolidation ◽  
Fiscal Stimulus ◽  
Policy Responses ◽  
Early Return ◽  
The Global Financial Crisis

This chapter covers the macroeconomic aspects of the Global Financial Crisis, the subsequent Great Recession/Lesser Depression and the policy responses in developed and developing countries. DESA was one of the first international bodies to recognize the impending threat of financial crisis and to advocate the use of Keynesian fiscal stimulus. In the aftermath of the crisis, the goal of most international institutions was to seek an early return to pre-crisis ‘normality’. This was reflected in a rapid turn towards fiscal consolidation, justified by the expectation that private sector expansion would offset public sector austerity. By contrast, WESP correctly warned of the dangers of a premature end to fiscal stimulus.

Australian Government Fiscal stimulus programs and gambling activity levels; an analysis of high-ethnic and low-ethnic communities

2017 ◽  
Vol 11 (1) ◽  
pp. 27-37
Author(s):  
Michael D'Rosario
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Economic Benefits ◽  
Estimation Methods ◽  
Ethnic Communities ◽  
Gambling Activity ◽  
Fiscal Stimulus ◽  
Extant Literature ◽  
The Global Financial Crisis ◽  
The Impact

The appropriateness of fiscal stimulus programs has come into question in light of the Global financial crisis. Indeed the austerity movement has called into question the economic benefits of large public spending programs. There is, however, a genuine dearth of research considering the impact of fiscal stimulus activities employed during the global financial crisis on spending behaviours, particularly when considering Australian stimulus programs. Much of the extant literature focuses on key matters such as quantitative easing and credit easing. The extant literature relating to fiscal stimulus research is typified by the utilisation qualitative methods to analyse the impact of the stimulus on economic activity. Most studies concern themselves with a handful of pertinent macroeconomic factors in an effort to surmise whether any possess any explanatory power, employing qualitative frameworks for analysis. The current study considers the impact of a discretionary stimulus program is affording a once off payment to Australian citizens on spending behaviour specifically the study shall consider the impact of government stimulus activities on gambling behaviours. Employing dynamic panel estimation methods, specifically the system GMM estimator, the study finds that fiscal stimulus significantly increased gambling activity in Australia, pertinently noting differential impacts within high ethnic and low ethnic communities.

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