Effect of Liquidity, Credit, and Solvency Risk on Corporate Innovation: Empirical Evidence from Emerging Economies & Developed Countries

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Manzoor Ali Isran ◽  
Anwar Hussain ◽  
Hafiz M. Shahid Irfan Aslam ◽  
Salman Bahoo
Keyword(s):  
Credit Risk ◽  
Emerging Economies ◽  
Significant Relationship ◽  
Liquidity Risk ◽  
Developed Countries ◽  
Panel Estimation ◽  
Dynamic Panel ◽  
Corporate Innovation ◽  
Relationship Of ◽  
The Relationship

This study aims to evaluate the relationship of liquidity risk, credit risk, solvency risk with corporate innovation in five emerging and nine developed countries during the period from 2002-2017. In this regard, we include 1304 firms’ data which is collected from Compustat. In addition, two-step system dynamic panel estimation is applied to evaluate the defined relationship. We found that credit risk and solvency risk are basic drivers to enhance the corporate innovation in selected countries. We found that credit risk and solvency risk have significant relationship with corporate innovation. Furthermore, liquidity risk has not found relationship with corporate innovation. Key words: Liquidity Risk, Credit Risk, Solvency Risk, Corporate Innovation

Effect of Liquidity, Credit, and Solvency Risk on Corporate Innovation: Empirical Evidence from Emerging Economies & Developed Countries

2021 ◽  
Vol 39 (1) ◽  
Author(s):  
Manzoor Ali Isran ◽  
Anwar Hussain ◽  
Hafiz M. Shahid Irfan Aslam ◽  
Salman Bahoo
Keyword(s):  
Credit Risk ◽  
Emerging Economies ◽  
Significant Relationship ◽  
Liquidity Risk ◽  
Developed Countries ◽  
Panel Estimation ◽  
Dynamic Panel ◽  
Corporate Innovation ◽  
Relationship Of ◽  
The Relationship

This study aims to evaluate the relationship of liquidity risk, credit risk, solvency risk with corporate innovation in five emerging and nine developed countries during the period from 2002-2017. In this regard, we include 1304 firms’ data which is collected from Compustat. In addition, two-step system dynamic panel estimation is applied to evaluate the defined relationship. We found that credit risk and solvency risk are basic drivers to enhance the corporate innovation in selected countries. We found that credit risk and solvency risk have significant relationship with corporate innovation. Furthermore, liquidity risk has not found relationship with corporate innovation. Key words: Liquidity Risk, Credit Risk, Solvency Risk, Corporate Innovation

scholarly journals Impact of Firm Specific Factors on Credit Risk: A Case of Karachi Stock Exchange

2015 ◽  
Vol 54 ◽  
pp. 140-143
Author(s):  
Sajid Iqbal ◽  
Saima Nasir Chaudry ◽  
Nadeem Iqbal
Keyword(s):  
Regression Analysis ◽  
Credit Risk ◽  
Significant Relationship ◽  
Multivariate Regression ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Multivariate Regression Analysis ◽  
Specific Factors ◽  
Relationship Of ◽  
The Relationship

The current study aims to explore the relationship of firm’s specific factors i-e profitability, ROA, leverage and bank size on credit risk. The population of the study consists of manufacturing sector of Pakistan. The sample of study is cement sector of Pakistan. The sample units are 22 and listed at Karachi stocks exchange. The multivariate regression analysis is used to test the data of sample. The study revealed negative significant relationship of all firm specific factors with credit risk in Pakistan. Thus, the study supported historic investigations regarding credit risk.

scholarly journals Impact of credit risk (NPLs) and capital on liquidity risk of Malaysian banks

2017 ◽  
Author(s):  
Yaman Hajja
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Liquidity Risk ◽  
Dynamic Panel Data ◽  
Bank Capital ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

We investigate the relationship between bank liquidity risk and credit risk and the impact of bank capital on liquidity risk. Using 19 Malaysian commercial banks data over 2002-2011 and applying dynamic panel data GMM estimation after controlling for bank-specific and macroeconomic variables, empirical results document a positive relationship between liquidity and credit risk and a non-linear U-shaped relationship between bank capital and liquidity risk.

scholarly journals THE RELATIONSHIP OF RISK MANAGEMENT AND BANK PROFITABILITY PERFORMANCE BETWEEN DOMESTIC AND FOREIGN ISLAMIC BANKS IN MALAYSIA

2019 ◽  
Vol 7 (6) ◽  
pp. 411-415
Author(s):  
Venny S. W. Chong ◽  
Jason M. S. Lam ◽  
S. H.Tan
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Panel Data Analysis ◽  
Liquidity Risk ◽  
Islamic Banks ◽  
Bank Profitability ◽  
Significant Difference ◽  
Relationship Of ◽  
The Relationship

Purpose: This study is to determine the effects of risk management towards the domestic and foreign Islamic bank’s financial performance in Malaysia. The ten Islamic banks in Malaysia have been chosen as the sample bank in which domestic and foreign banks were equally divided. The credit risk, liquidity risk as well as solvency risk acted as the independent variables to determine the effects towards the bank’s profitability as measured by return on equity. Methodology: The panel data analysis has employed fixed effect and random effect regression models and the Hausman test in this study. Furthermore, the independent sample T-test was conducted to examine the significant difference between domestic and foreign Islamic banks. Result: The finding of this study showed that liquidity risk and insolvency risk would have a greater impact towards the Islamic bank’s profitability while the credit risk has no significant influence on Islamic bank’s financial performance in Malaysia. The study concludes that domestic Islamic banks had better financial performance as compared to foreign Islamic banks in Malaysia. Applications: This research can be used for universities, teachers, and students. Novelty/Originality: In this research, the model of The Relationship of Risk Management and Bank Profitability Performance between Domestic and Foreign Islamic Banks in Malaysia is presented in a comprehensive and complete manner.

scholarly journals The Relationship of Credit Risk to Liquidity and its Reflection in Achieving the Profitability Target

2017 ◽  
Vol 1 (1) ◽  
pp. 38-59
Author(s):  
Alaa Farhan Talib ◽  
Saadi Ahmed Hamid ◽  
Sabah Hassan Abd AlAkeil
Keyword(s):  
Credit Risk ◽  
Strong Correlation ◽  
Commercial Banks ◽  
Liquidity Risk ◽  
Financial Ratios ◽  
Bank Profitability ◽  
Relationship Of ◽  
The Relationship

This study attempts to show the relationship between the credit risk in liquidity and the reflection of that relationship in achieving the goal of banking profitability. A group of financial ratios was used for the sample banks to conduct the analysis. The study included a sample of Iraqi commercial banks for the period 2011-2015. There is a strong correlation between the two variables (credit and liquidity risk) and a reflection of that relationship also in achieving the goal of bank profitability.

Risiko Kredit, Likuiditas Dan Kecukupan Modal Terhadap Profitabilitas Berdampak Pada Return Saham

2017 ◽  
Vol 9 (2) ◽  
pp. 103-118
Author(s):  
Sesilya Kempa
Keyword(s):  
Credit Risk ◽  
Stock Returns ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Bank Stock Returns ◽  
Negative Effect ◽  
Bank Stock ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

There are the problem of credit risk, liquidty risk and capital adequacy affecting the level of the bank performance. The study is aimed to find empirical evidence of the relationship of credit risk, liquidity risk and capital adequacy toward profitability and its impact to bank stock returns. This study uses causality approach with path analysis techniques to obtain results. The results showed that credit risk (NPL) has negative effect toward the profitability (ROA and ROE). While liquidity risk (LDR) has positive effect on ROA and capital adequacy (CAR) affects neghatively toward ROE. Furthermore, ROA negatively affects stock returns and ROE has positive effect on stock return.

HUBUNGAN BOARD DAN KOMITE AUDIT TERHADAP MANAJEMEN LABA

2010 ◽  
Author(s):  
Fivi Anggraini
Keyword(s):  
Corporate Governance ◽  
Moral Hazard ◽  
Earnings Management ◽  
Conflict Of Interest ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Earning Management ◽  
Independent Directors ◽  
Relationship Of ◽  
The Relationship

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.

A learning organization perspective on knowledge-sharing behavior and firm innovation

2006 ◽  
Vol 25 (4) ◽  
pp. 227-236
Author(s):  
Li-Fen Liao
Keyword(s):  
Knowledge Sharing ◽  
Learning Organization ◽  
Significant Relationship ◽  
Shared Vision ◽  
Firm Innovation ◽  
Positive Effects ◽  
Knowledge Sharing Behavior ◽  
Relationship Of ◽  
The Relationship ◽  
Sharing Behavior

Sharing knowledge and firm innovation are the crucial ways to sustain competitive advantage. This study builds a nested model to test the relationship between learning organization, knowledge-sharing behavior, and firm innovation. Data gathered from 254 employees were used to examine the relationship of the learning organization to employees' knowledge-sharing behavior and firm innovation. The results indicate that open-mindedness, shared vision and trust have positive effects on both knowledge-sharing behavior and firm innovation. While commitment to learning does not shows significant relationship on knowledge-sharing behavior and firm innovation. Communication has significance on firm innovation but not significance on knowledge-sharing behavior.

scholarly journals The Relationship between Reputation, Customer Satisfaction, Trust, and Loyalty

2014 ◽  
Vol 4 (3) ◽  
pp. 368 ◽  
Author(s):  
Roshana Gul
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Significant Relationship ◽  
Positive Sign ◽  
Medical College ◽  
Independent Variable ◽  
Relationship Of ◽  
The Relationship ◽  
Self Administered Questionnaire

Though a lot of studies have been done to conclude customer loyalty as dependent variable but still there is a vast margin of researches to be conducted in future in different spheres of this construct. On the other hand the truth of the importance of customer loyalty as an enduring asset cannot be falsified. It is fundamental for organizations to build up long term and mutual beneficial associations with the customers. The purpose of this research paper is to show the inter relationship of reputation, customer satisfaction and trust on customer loyalty. According to the observations reputation is the major independent variable that has significant relationship with customer satisfaction, customer loyalty, and trust. Data for this research study was taken from the Islamia University, Quaid-e-Azam Medical College, and different banks located at various geographic locations of Bahawalpur region of Pakistan. Data was collected through self administered questionnaire and analyzed by using regression through SPSS. The results have been drawn from 150 users of NISHAT LINEN and it was found that there is positive and significant relationship among reputation, customer satisfaction, trust and customer loyalty. Hence the studies give the positive sign that with the increment of reputation, customer satisfaction and trust the customer loyalty enhances.  

scholarly journals HUBUNGAN POLA ASUH ORANG TUA TERHADAP PERILAKU BULLYING DI SMA N 1 BOLANGITANG

2019 ◽  
Author(s):  
fendi ntobuo
Keyword(s):  
Parenting Style ◽  
Significant Relationship ◽  
Total Population ◽  
P Value ◽  
Chi Square ◽  
Study Approach ◽  
A Value ◽  
Bullying Behavior ◽  
Relationship Of ◽  
The Relationship

One of negative behavior that is mostly done by adolescents is bullying, this behavior is prevalent in the school enviroment. Generally, the factor that influence bullying behavior are family factors, shool factor, peer factor. The focus was on the influence of parenting style because it has a correlation between parenting on an aggressive behavior. The purpose of this study was to determine the relationship of parenting to bullying behavior in Bolangitan 1 N Senior High study approach. The total population was 48 respondents. The result of study by using the Chi Square statistical tes tah there is a significant relationship between parenting of bullying behavior in Bolangitan N 1 School with a value (p value: 0,000). It can concluded there is a significant relationship between parenting style towards bullying behavior in Bolangitan 1 Senior High School. It suggest that counseling can be held about bullying behavior and its response to adolescents.

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