scholarly journals The THE IMPACT OF FOREIGN SHAREHOLDINGS, FOREIGN COUNTRY ADVANCEMENT, AND CORPORATE GOVERNANCE MODERATING ROLE ON BANK EFFICIENCY

2019 ◽  
Vol 4 (1) ◽  
pp. 13-16
Author(s):  
Aswin Rivai
Keyword(s):  
Banking Industry ◽  
Country Of Origin ◽  
Developed Countries ◽  
Bank Efficiency ◽  
Original Contribution ◽  
Two Factors ◽  
The Board Of Directors ◽  
New Perspective ◽  
The Impact ◽  
Moderating Role

This research is intended to open a new  perspective on how foreign shareholdings in Indonesia’s banking industry affect the efficiency of its acquired local banks by analyzing the foreign shareholdings percentage/portion and also analyzing its country of origin that till date is still scant.  The results of the studies show that percentage of foreign shareholdings positively affecting efficiency of acquired local banks only if the foreign shareholders is majority shareholders and originating from developed countries.  The increase in the size of the Board of Directors tends to decrease the efficiency of the acquired local banks and lastly, the presence of Foreign Director has a positive moderating effect on strengthening the effect of percentage of foreign shareholdings on the efficiency of the acquired local banks.   The original contribution of this studies is that the percentage of foreign shareholdings and its country of origin are two factors that cannot be separated in affecting the level of efficiency of its acquired local bank.

scholarly journals Foreign Shareholdings Impact on Banks Efficiency and Moderating Role of Corporate Governance

2019 ◽  
Vol 8 (2S9) ◽  
pp. 414-425
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Country Of Origin ◽  
Developed Countries ◽  
Moderating Effect ◽  
Due Diligence ◽  
The Board Of Directors ◽  
The Impact ◽  
Moderating Role

The research investigate the impact of foreign shareholding originated from developed and developing countries on the efficiency of acquired local banks in Indonesia during 2007-2017 by including Corporate Governance as a moderating variable. Methodology: Using the secondary aggregate data of 29 commercial banks acquired by foreign shareholders, a panel regression model using econometrics methods of GLS, and DEA were applied to examine the effects of percentage of foreign shareholdings on efficiency of the acquired local banks. The main findings; First, percentage of foreign shareholdings positively affecting efficiency of acquired local banks only if the foreign shareholders is originated from developed countries. Second, the level of economic advancement of the country of origin of foreign shareholders has significant effects on the efficiency of the acquired local banks. Third, the increase in the size of the Board of Directors tends to decrease the efficiency of the acquired local banks and fourth, the presence of Foreign Director has a positive moderating effect on strengthening the effect of percentage of foreign shareholdings on the efficiency of the acquired local banks. Overall, the originality of this studies is that the percentage of foreign shareholdings and its country of origin are two combined factors that cannot be separated in affecting the level of efficiency of its acquired local bank and the fact of significant positive moderating effect of Foreign Director. As policy consideration, monetary authority need to perform strict due diligence on prospective foreign shareholders specifically originated from developing countries, advise banks to maintain the existence of Foreign Director and to encourage small local banks to be merged prior to the acquisition by foreign shareholders.

scholarly journals Information Technology and Cost Efficiency in Malaysian Banking Industry

2020 ◽  
Author(s):  
Mohd. Zaini Abd. Karim ◽  
Abdul Rahim Anuar ◽  
Shazida Jan Mohd. Khan
Keyword(s):  
Information Technology ◽  
Cost Efficiency ◽  
Economies Of Scale ◽  
Banking Industry ◽  
Cost Effective ◽  
Bank Efficiency ◽  
Banking Efficiency ◽  
Cost Frontier ◽  
Knowledge Based ◽  
The Impact

It is argued that information technology can increase cost efficiency of banks by offering opportunities to substitute across inputs into production – for example, to substitute computer technology and information networks for labor. Hence, the transition to a knowledge-based financial sector would lead to banks becoming more competitive, more cost effective and better able in managing risks. As such, those banks that failed to make this transition are less able to compete as they lack the capability to innovate and face higher delivery costs. The main objectives of this paper are to determine the impact of IT on banking efficiency and its economies of scale using a sample of Malaysian banks. To achieve these objectives, stochastic cost frontier method is employed to estimate bank efficiency and panel data approach were used to examine the impact of IT on bank efficiency. The results indicate that the impact of IT on bank efficiency increases with increase in bank size, hence further supporting the process of bank mergers that are currently undertaken in the Malaysian banking industry.  

scholarly journals The role of corporate governance on CSR disclosure and firm performance in a voluntary environment

2019 ◽  
Vol 20 (2) ◽  
pp. 294-306 ◽  
Author(s):  
Aruoriwo Marian Chijoke-Mgbame ◽  
Chijoke Oscar Mgbame ◽  
Simisola Akintoye ◽  
Paschal Ohalehi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Developed Countries ◽  
Economic Benefits ◽  
Data Set ◽  
Content Type ◽  
Csr Disclosure ◽  
The Impact ◽  
Moderating Role

Purpose This study aims to investigate the impact of corporate social responsibility disclosure (CSRD) on firm performance and the moderating role of corporate governance on the CSRD–firm performance relationship of listed companies in Nigeria. Design/methodology/approach The paper uses a panel data set comprising 841 firm-year observations for the period covering 2007-2016. Fixed effect regression analysis was used to examine the relationship between CSRD and firm performance, and the moderating role of corporate governance in the CSRD–firm performance relationship. Findings The results of the study show that there are positive performance implications for firms that engage in CSRD. Although this study finds no effect of board size on the CSRD–firm performance relationship, it provides a strong evidence of a positive effect of board independence on the CSR–firm performance relationship. Practical implications The study contributes to the understanding of CSRD–firm performance relationship by providing evidence of the moderating role of corporate governance. It is, therefore, recommended that a stronger regulation be put in place for CSR engagement and the disclosure of same in Nigeria as well as robust measures for the enforcement of corporate governance mechanisms because there are economic benefits to be derived. Originality/value The findings contribute to the literature by providing up-to-date and original insights on the CSRD–firm performance relationship within a developing country context. It also uses an uncommon method of measuring CSRD, taking into account the institutional biases that may arise from other methods used in studies on developed countries.

Does origin matter? The impact of the institutional environment of the origin country on the internationalization of franchise chains

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Giovani Lanfranchi ◽  
Suzane Strehlau ◽  
Felipe Mendes Borini ◽  
Pedro Lucas de Resende Melo
Keyword(s):  
Institutional Environment ◽  
Country Of Origin ◽  
Developed Countries ◽  
International Markets ◽  
Market Potential ◽  
Institutional Characteristics ◽  
International Expansion ◽  
Content Type ◽  
The Impact ◽  
Selection Of

Purpose The purpose of this research is to identify the impacts of the country of origin of a franchise chain on its commitment in the destination countries, verifying the institutional particularities between the chains from emerging and developed countries. Design/methodology/approach The research is descriptive and quantitative and involved 724 franchise chains from 10 countries of origin (Brazil, Russia, India, South Africa, Argentina, USA, Germany, Australia, Spain and Portugal), spread over 174 destination countries, totaling 3,513 cases. Findings The results indicate that institutional preferences do not vary according to the country of origin of the franchise chain but rather vary according to the destination country. Research limitations/implications This paper contributes to institutional theory by identifying a set of characteristics that explains the selection of international markets and the commitment of franchise chains. Practical implications The results obtained in the study can help managers of franchise chains to make decisions related to the selection of destination countries for international expansion based on the institutional characteristics of the markets and their compatibility with the objectives of the franchise chains. Originality/value Companies in emerging countries internationalize according to different management logics from those of companies from developed countries. Thus, it is possible that the process of selecting countries for internationalization is also based on different criteria that reflect different institutional preferences. The thesis defended in the paper is that market potential is more important to franchisees from emerging markets, whereas contract enforcement is more important to franchisees from developed markets.

scholarly journals Management perspectives on country of origin

2016 ◽  
Vol 20 (2) ◽  
pp. 230-244 ◽  
Author(s):  
Arooj Rashid ◽  
Liz Barnes ◽  
Gary Warnaby
Keyword(s):  
Large Scale ◽  
Country Of Origin ◽  
Point Of View ◽  
The Body ◽  
Content Type ◽  
Consumer Perspective ◽  
New Perspective ◽  
Retail Branding ◽  
The Uk ◽  
The Impact

Purpose – The purpose of this paper is to provide a new perspective by conceptualising country of origin (COO) from a management perspective, identifying the impact different COO constructs have in the context of fashion retailer and manufacturer businesses. Design/methodology/approach – This qualitative study comprises a series of in-depth interviews with key informants from large-scale fashion retailers and manufacturers in the UK. Findings – The major findings of this research demonstrate that COO is considered a strategic business imperative but manifests in a variety of ways depending on brand positioning, long-term strategic plans, expertise, and brand values, etc. Research limitations/implications – This study contributes to the body of knowledge about the importance of COO. The findings of this research will have practical implications for manufacturers and retailers, informing the debate on the value of the “Made in […]” epithet. Findings are limited to the UK fashion clothing industry. Originality/value – This research presents a new perspective on the COO construct, addressing it from a management rather than consumer perspective. It argues that COO can be considered as a strategic dimension, which is manifested in a variety of ways. COO has been extensively researched from a consumer point of view but this research takes a new approach by presenting findings from a managerial point of view, with fashion manufacturing and retail branding as the context.

scholarly journals Upravljanje globalnim brendom s osvrtom na efekt zemlje porijekla

2017 ◽  
Vol 5 (2) ◽  
Author(s):  
Aleksandra Krajnović ◽  
Ivan Jadreško ◽  
Jurica Bosna
Keyword(s):  
Developing Countries ◽  
Economies Of Scale ◽  
Brand Management ◽  
Country Of Origin ◽  
Developed Countries ◽  
International Expansion ◽  
Long Time ◽  
Geographical Expansion ◽  
The Impact ◽  
Cover Up

Geographical expansion is inevitable destiny of brands because it determines the growth of the brand and its ability to innovate and maintain competitive advantage in terms of economies of scale and productivity. Therefore, brand managers are trying to find out new ways and approaches in a manner to achive international expansion. The effect that has been studied for a long time in relation with brands is the effect of the country of origin. Purpose of this paper is to find out the impact of the country of origin on the contemporary brand management. Goal of the paper is to point out the end of country of origin trend in developed countries and development of this effect in developing countries. More and more companies are currently trying to cover up the country of origin of the product while brend with its image represents more important and familiar information. Generally, the effect of country of origin becomes less important while the country of the brand has a growing importance.

scholarly journals Does FDI Caused Profit Repatriation: Exploring the Moderating Role of Governance Institutions

2020 ◽  
Vol 10 (2) ◽  
pp. 134
Author(s):  
Ghalib Bin Faheem ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
Developed Countries ◽  
Doing Business ◽  
Governance Institutions ◽  
The Cost ◽  
The Impact ◽  
Moderating Role

This paper investigates the impact of foreign direct investment, institutional quality on profit repatriation and net primary income taken as a proxy of profit repatriation. Inflation and GDP per capital were taken as controls. Data sample of 54 countries (developing) has been used for the first model of this research. And data sample of 100 countries (developed and developing both) has been used for the second model. The sample period is from 2008-2017. Finding of this study indicate that institutions quality is negatively impacting profit repatriation and net primary income. It also reveals foreign direct investment is negatively affecting profit repatriation but positively impacting net primary income. Results reveal that investors are unwilling to invest in countries where institutions encourage corruption, because these factors increase the cost of doing business. Developing countries have weaker institutions than developed countries and so, investors will be taking their profit back and not willing to re-invest in that particular country.

scholarly journals The Determinants Of European Bank Profitability

2011 ◽  
Vol 3 (6) ◽  
Author(s):  
Christos K. Staikouras ◽  
Geoffrey E. Wood
Keyword(s):  
Fixed Effects ◽  
Banking Industry ◽  
Financial Institution ◽  
Policy Implications ◽  
Bank Profitability ◽  
European Banking ◽  
New Perspective ◽  
External Forces ◽  
The Impact ◽  
The Eu

The rate of return earned by a financial institution is affected by numerous factors. These factors include elements internal to each financial institution and several important external forces shaping earnings performance. The type of explanation would determine possible policy implications and ought to be taken seriously. This paper reviews the literature on bank performance studies and classifies the bank profitability determinants. The second part of the paper quantifies how internal determinants (within effects changes) and external factors (dynamic reallocation effects) contribute to the performance of the EU banking industry as a whole in 1994-1998. We construct OLS and fixed effects models, and the results provide a new perspective for understanding the impact of changes in competition on the performance of the EU banking industry. The estimation results suggest that the profitability of European banks is influenced not only by factors related to their management decisions but also to changes in the external macroeconomic environment. The results are in contrast to studies that have examined the structure-performance relationship for European banking and find a positive effect of the concentration and/or market share variables on bank profitability.

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