scholarly journals Structural modeling of the impact of bank nonperforming loans on the banking sector: the Ukrainian experience

2020 ◽  
Vol 15 (2) ◽  
pp. 67-78 ◽  
Author(s):  
Eugenia Bondarenko ◽  
Olena Zhuravka ◽  
John O. Aiyedogbon ◽  
Ologunla Emmanuel Sunday ◽  
Vita Andrieieva
Keyword(s):  
Financial Stability ◽  
Structural Equation ◽  
Banking Sector ◽  
Mutual Influence ◽  
Statistical Significance ◽  
Noncentrality Parameter ◽  
Equation Modeling ◽  
Nonperforming Loans ◽  
Banking Institutions ◽  
The Impact

The paper aims to develop scientific and methodological approach to assessing the interaction of nonperforming loans of Ukrainian banking institutions, the profitability of the banking sector and its financial stability, which will allow a more detailed assessment of the directions and degree of mutual influence of these elements. To substantiate this interaction economically and mathematically, structural equation modeling was chosen. Particularly, Statistica was chosen as a software tool to assess the adequacy of the resulting model and determine the level of statistical significance of its parameters. Six key indicators were selected as a research information base, two for each subject of research: indicators of nonperforming loans in the banking sector (the volume of nonperforming loans and the ratio of problem loans excluding capital reserves), profitability indicators of the Ukrainian banking sector (assets profit and rate of return on capital), and indicators of financial stability of the Ukrainian banking sector (regulatory capital-to-risk-weighted assets ratio and liquid assets-to-total assets ratio). For calculations, statistic data of selected indicators for 2005–2019 were used. As a result of calculations, mathematical data were obtained that accurately described the interaction of nonperforming loans of Ukrainian banking institutions, the profitability of the banking sector and its financial stability. The adequacy of the model was verified based on the following criteria: main summary statistics (ICSF criterion, ICS criterion, discrepancy function, maximum residual cosine), noncentrality fit indices (noncentrality parameter, population noncentrality parameter, Steiger-Lind RMSEA index, McDonald noncentrality index, adjusted population Gamma index), other single sample indices (Akaike information criterion, Schwarz criterion), and a normal probability plot.

scholarly journals The Relationship of Sustainability Communication on Social Media with Banking Consumers’ Loyalty through e-WOM

2021 ◽  
Vol 13 (7) ◽  
pp. 3832
Author(s):  
Gao Wei ◽  
Wang Lin ◽  
Wu Yanxiong ◽  
Yan Jingdong ◽  
Sadik Yusuf Musse
Keyword(s):  
Social Media ◽  
Structural Equation ◽  
Positive Emotions ◽  
Banking Sector ◽  
Equation Modeling ◽  
Consumer Loyalty ◽  
Csr Communication ◽  
Prior Literature ◽  
Corporate Social ◽  
The Impact

Prior literature has largely addressed corporate social responsibility (CSR) from outcomes related to organizational themes. However, its importance for achieving consumer-related outcomes is something that has been largely ignored by contemporary researchers. Likewise, how CSR communication through social media can create positive emotions on the part of consumers has to date been under-explored. Hence, the present study aims to fill these gaps by investigating the impact of CSR communication of an organization through social media on consumer loyalty. The study also proposes electronic word of mouth (e-WOM) as a potential mediator between this relationship. The proposed model of the present study was tested in the banking sector of a developing country. The data were collected from a self-administered questionnaire and analyzed through the structural equation modeling technique (SEM). The results of the present study validated that CSR communication of a bank through social media directly and indirectly, through e-WOM, influences consumer loyalty in a positive manner. The results of the present study will be helpful for policymakers to better understand how well-planned CSR communication of an organization on social media can lead towards better consumer-related outcomes such as consumer loyalty and e-WOM.

Mobile-banking adoption: empirical evidence from the banking sector in Pakistan

2018 ◽  
Vol 36 (7) ◽  
pp. 1386-1413 ◽  
Author(s):  
Maya F. Farah ◽  
Muhammad Junaid Shahid Hasni ◽  
Abbas Khan Abbas
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Banking Sector ◽  
Perceived Value ◽  
Equation Modeling ◽  
Mobile Banking ◽  
Content Type ◽  
Actual Use ◽  
Use Behavior ◽  
The Impact

Purpose The purpose of this paper is to study the important factors which help explain consumer intention and use behavior in mobile banking (m-banking) adoption. All constructs of the unified theory of acceptance and use of technology 2 are studied. Non-monetary value is studied through perceived value. Trust and perceived risk are also included to predict intention. Design/methodology/approach A questionnaire was utilized to evaluate customer responses on a five-point Likert scale. A convenience sampling technique was used to collect data from a sample of 490 respondents in Pakistan. The data were analyzed using AMOS and SPSS for Cronbach’s α, CR, CMV, AVE, Harmon’s single factor test, correlation and structural equation modeling. Findings The results of the study show that most of the predictors of intention, including perceived value, performance expectancy, habit, social influence, effort expectancy, hedonic motivation (except for facilitating condition), perceived risk and trust, are significant. All predictors of usage behavior are significant. Research limitations/implications A cross-sectional study was conducted due to time constraints. Practical implications Bank managers must focus on improving customers’ intentions to use m-banking as well as on providing facilitating conditions to increase its actual use. To boost mobile banking, banks’ management must consider the customers’ habits while designing their m-banking products. Originality/value The findings of this paper are not only interesting in terms of boosting m-banking diffusion rate, but also in terms of financial inclusion of the vast majority of mobile users. Further the impact of intention, facilitating condition and habit were checked on actual use behavior since people tend not always to act upon their intentions.

The Effect of Pleasure and Arousal on Satisfaction and Word-of-Mouth: An Empirical Study of the Indian Banking Sector

2013 ◽  
Vol 38 (2) ◽  
pp. 95-104 ◽  
Author(s):  
Gopal Das
Keyword(s):  
Customer Satisfaction ◽  
Conceptual Model ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Banking Sector ◽  
Positive Impact ◽  
Sampling Procedure ◽  
Equation Modeling ◽  
Public And Private Sector ◽  
The Impact

During the last decade, the Indian banking sector has shown a remarkable advancement in terms of innovation, growth, and value creation. Behind this development of the Indian banking sector, several factors like customer satisfaction and word-of-mouth (WOM) are responsible. Literature has reported that pleasure and arousal play an important role in customer satisfaction. Investigations have been carried out on the influence of pleasure and arousal on behavioural intentions including satisfaction and WOM. However, there has been no such study for the banking sector. This gap in research has motivated this study. This paper suggests a conceptual model in which pleasure and arousal directly influence satisfaction and WOM. It also tests the impact of satisfaction on WOM. Based on prior literature, several hypotheses stating the linkages among pleasure, arousal, satisfaction, and word-of-mouth were developed. Russell�s framework for pleasure and arousal (emotion) formed the basis of the model. For the purpose of the study, face-to-face interviews with a structured questionnaire were conducted to collect data. Participants included customers above 18 years from both public and private sector banks in three cities namely, Kolkata, Durgapur, and Haldia of West Bengal, India. Data collection was done with the use of area sampling procedure. Out of 500 questionnaires administered, about 310 questionnaires were useable for analysis. The data analysis was done with SPSS 19 and AMOS 18. Structural equation modeling (SEM) using AMOS 18 was applied to explore the links between the constructs in the conceptual model. The overall fit of the conceptual model was assessed using several indices furnished in the AMOS output. The fit index results suggested model fitness with the data. The results of the study indicate that: Pleasure has significant positive and negative impacts on satisfaction and WOM respectively. Arousal has significant negative and positive impact on satisfaction and WOM. Satisfaction has positive significant impact on WOM.

scholarly journals A Comparative Study of Users versus Non-Users’ Behavioral Intention towards M-Banking Apps’ Adoption

Information ◽  
2022 ◽  
Vol 13 (1) ◽  
pp. 30
Author(s):  
Vaggelis Saprikis ◽  
Giorgos Avlogiaris ◽  
Androniki Katarachia
Keyword(s):  
Behavioral Intention ◽  
Structural Equation ◽  
Banking Sector ◽  
Value Added ◽  
Business Strategies ◽  
Equation Modeling ◽  
Information And Communications Technologies ◽  
Use Of Technology ◽  
Financial Transactions ◽  
The Impact

The banking sector has been considered as one of the primary adopters of Information and Communications Technologies. Especially during the last years, they have invested a lot into the digital transformation of their business process. Concerning their retail customers, banks realized very early the great potential abilities to provide value added self-services functions via mobile devices, mainly smartphones to them; thus, they have invested a lot into m-banking apps’ functionality. Furthermore, the COVID-19 pandemic has brought out different ways for financial transactions and even more mobile users have taken advantage of m-banking app services. Thus, the purpose of this empirical paper is to investigate the determinants that impact individuals on adopting or not m-banking apps. Specifically, it examines two groups of individuals, users (adopters) and non-users (non-adopters) of m-banking apps, and aims to reveal if there are differences and similarities between the factors that impact them on adopting or not this type of m-banking services. To our knowledge, this is the second scientific attempt where these two groups of individuals have been compared on this topic. The paper proposes a comprehensive conceptual model by extending Venkatech’s et al. (2003) Unified Theory of Acceptance and Use of Technology (UTAUT) with ICT facilitators (i.e., reward and security) and ICT inhibitors (i.e., risk and anxiety), as well as the recommendation factor. However, this study intends to fill the research gap by investigating and proving for the first time the impact of social influence, reward and anxiety factors on behavioral intention, the relationship between risk and anxiety and the impact of behavioral intention on recommendation via the application of Confirmatory Factor Analysis and Structural Equation Modeling (SEM) statistical techniques. The results reveal a number of differences regarding the factors that impact or not these two groups towards m-banking app adoption; thus, it provides new insights regarding m-banking app adoption in a slightly examined scientific field. Thus, the study intends to assist the banking sector in better understanding their customers with the aim to formulate and apply customized m-business strategies and increase not only the adoption of m-banking apps but also the level of their further use.

scholarly journals A structural approach to financial stability: On the beneficial role of regulatory governance

2013 ◽  
Vol 2 (1) ◽  
pp. 7-26 ◽  
Author(s):  
Benjamin Mohr ◽  
Helmut Wagner
Keyword(s):  
Latent Variables ◽  
Financial Stability ◽  
Structural Equation ◽  
Banking Sector ◽  
Institutional Environment ◽  
Equation Modeling ◽  
Regulatory Governance ◽  
Economic Statistics ◽  
Financial Soundness

This paper examines whether the governance of regulatory agencies – regulatory governance – is positively related to financial sector soundness. We model regulatory governance and financial stability as latent variables, using a structural equation modeling approach. We include a broad range of variables potentially relevant to financial stability, employing aggregate regulatory, banking and financial, macroeconomic and institutional environment data for a sample of 55 countries over a period from 2001 to 2005. Given the growing importance of macro-prudential analysis, we use the IMF’s financial soundness indicators, a relatively new body of economic statistics which focuses on the banking sector as a whole. Our empirical evidence indicates that regulatory governance has a beneficial influence on financial stability. Thus, our findings support the view that the improvement of regulatory governance arrangements should be a building block of financial reform

The impact of transformational leadership on employees’ creativity

2018 ◽  
Vol 41 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Taghrid S. Suifan ◽  
Ayman Bahjat Abdallah ◽  
Marwa Al Janini
Keyword(s):  
Transformational Leadership ◽  
Organizational Support ◽  
Structural Equation ◽  
Perceived Organizational Support ◽  
Banking Sector ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the effect of transformational leadership on employees’ creativity in the Jordanian banking sector through the mediating effect of perceived organizational support. Design/methodology/approach The study is based on survey data collected from 369 employees working in Jordanian banks. Validity and reliability analyses were performed, and direct and indirect effects were tested using structural equation modeling. Findings The results indicate that transformational leadership positively affects some dimensions of employees’ creativity and perceived organizational support. However, perceived organizational support is found to not be significantly related to some dimensions of employees’ creativity. Additionally, the mediating effect of perceived organizational support on the relationship between transformational leadership and some dimensions of employees’ creativity is found to not be significant. Originality/value This paper is one of the first to examine the relationship between transformational leadership and employees’ creativity through perceived organizational support, especially in an Arab country and in the banking sector.

Consequences of customer engagement and customer self-brand connection

2018 ◽  
Vol 32 (4) ◽  
pp. 387-399 ◽  
Author(s):  
Miguel Ángel Moliner ◽  
Diego Monferrer-Tirado ◽  
Marta Estrada-Guillén
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Banking Sector ◽  
Physical Contact ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Content Type ◽  
New Information ◽  
Empirical Perspective ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of the customer engagement and customer self-brand connection on customer advocacy and firms’ financial performance. The research focuses on the financial sector and studies a complex organization with a uniform strategy, but which attends the public in different centers (bank branches). Design/methodology/approach A theoretical model of effects is tested using dyadic methodology, with 225 dyads (bank branch manager – average of five customers). The authors use structural equation modeling (EQS6.1) to test the relationships. Findings The results corroborate the hypotheses, with the exception of the influence of customer self-brand connection on financial performance. These analyses show that in the banking sector, where the intensive use of new information and technologies has led to a reduction in direct physical contact with the customer, the off-line experience continues to have a notable economic impact. Furthermore, investment in the brand from an experiential approach determines customer advocacy. Originality/value The contribution of this paper is twofold. This research analyzes from a theoretical and empirical perspective the impact of the customer engagement and customer self-brand connection on customer advocacy and firms’ financial performance.

scholarly journals The Nexus of CSR and Co-Creation: A Roadmap towards Consumer Loyalty

2021 ◽  
Vol 13 (2) ◽  
pp. 523
Author(s):  
Naveed Ahmad ◽  
Miklas Scholz ◽  
Zia Ullah ◽  
Muhammad Zulqarnain Arshad ◽  
Raja Irfan Sabir ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Structural Equation ◽  
Banking Sector ◽  
Equation Modeling ◽  
Service Development ◽  
Consumer Loyalty ◽  
Mediating Role ◽  
Corporate Social ◽  
The Impact

Corporate Social Responsibility (CSR) is regarded as an effort to be undertaken by the businesses to contribute towards society at large positively. The idea behind the concept of CSR is that businesses are required to pursue the notion of pro-social objectives along with economic objectives. Research has long established that corporate social responsibility, along with its philanthropic nature, can also produce extraordinary marketing results for businesses. The relationship between CSR and consumer loyalty is well acknowledged in extant literature. Likewise, involving consumers through co-creation in the product/service development process may provide an exciting experience to consumers, which is likely to influence their loyalty. With these arguments, the present research investigates the impact of CSR on consumer loyalty with the mediating role of co-creation in the banking sector of an emerging economy such as Pakistan. Structural equation modeling (SEM) is used for data analysis in the present study. The results validate that CSR improves consumer loyalty, and co-creation partially mediates this relationship. The results of the current survey will help banking institutions to identify how they can develop core strategic considerations based on CSR and co-creation.

scholarly journals The Impact of COVID-19 on Bank Equity and Performance: The Case of Central Eastern South European Countries

2021 ◽  
Vol 13 (19) ◽  
pp. 11036
Author(s):  
Sylwester Kozak
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Capital Requirements ◽  
Financial Supervision ◽  
Annual Data ◽  
Stress Tests ◽  
Global Database ◽  
Nonperforming Loans ◽  
Central Eastern ◽  
The Impact

The purpose of this article is to examine the impact of the shock increase, in the value of nonperforming loans, on the equity level and profitability of 141 banks in 18 countries of Central Eastern South Europe (CESE). This study is important for assessing the financial stability of banks in this region in the face of the continuing negative effects of the COVID-19 pandemic. Based on the annual data, as of the end of 2020, from the S&P Global database, stress tests were carried out to check what value of NPL growth, over the next year, will lead to breach the regulatory capital requirements in domestic sectors and in individual groups of banks. The results indicate that the banks in CESE were well capitalized and had the ability to maintain capital requirements with a 12% increase in nonperforming loans. The resilience of domestic banking sectors varies, and it is higher in non-EU countries. Smaller and non-public banks show a greater ability to preserve the appropriate level of equity, although there is a risk that they may postpone the time of provisioning credit risk and additionally increase lending to lower the NPL ratio. Larger banks are more profitable in times of crisis. The results of the research are important for assessing the stability of the banking sector in CESE during the crisis and can be used by financial supervision of the region’s countries and banking market analysts.

scholarly journals Moderating Role of Person Job-Fit Facet between Hierarchical Plateau and Turnover Intention

2021 ◽  
Vol 15 (2) ◽  
pp. 176-190
Author(s):  
Ramesh Kumar ◽  
Waqar Akbar ◽  
Naveed R. Khan
Keyword(s):  
Turnover Intention ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Impact ◽  
Equation Modeling ◽  
Job Fit ◽  
Industrial Sectors ◽  
The Impact ◽  
Moderating Role

This study aims to examine the impact of hierarchical plateau on turnover intention with moderating role of person job-fit facet. Hierarchical plateau is a point of an individual's career life where the probability of being promoted further is low. The theory of work adjustment (TWA) is applied in this research study which measures that satisfaction level of an employee and leaving a company when needs and desired system of the person and the organization system mismatched at the workplace. Overall 260 employees participated by filling the self-administrated questionnaires from three different industrial sectors of Karachi, Pakistan including banking sector, pharmaceutical and insurance employees but result of completely and accurately filled questionnaires of 223 employees were tested. The results are generated through using Structural Equation Modeling (PLS-SEM) technique. The results show that hierarchical plateau has positive impact on turnover intention. However, moderating role of person job fit facet (neither demand abilities nor need supplies) moderates' relationship between independent and dependent variable. This study provides a model to management leaders and practitioners who can extremely look into this growing issue not only in Pakistan but worldwide. Certain actions need to be implemented by management to foster a positive attitude towards turnover intention through proper recruitments, development strategies and career training programs over the span of time. Furthermore, the study also provides the guidelines to HR departments to design the policies to resolve hierarchical plateau issues in their organization.

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