Effect of R & D Investment on Performance of Banking Sector in Pakistan

2018 ◽  
Vol 5 (4) ◽  
pp. 7-12
Author(s):  
Shaheen Fatima ◽  
Samreen Fatima ◽  
Nausheen Fatima
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect ◽  
Least Square ◽  
Annual Reports ◽  
New Production ◽  
Effect Model ◽  
D Investment

Research and development activity initiates and promotes new production, increase knowledge level, and introduces new techniques of technology implementation and production. The current study presents and unveils the diversifying behavior of variables affecting the performance of banking sector and R&D investment association. cross sectional fixed effect model and random effect model utilizing ordinary least square methods were applied to secondary data collected from reliable sources of annual reports published by banks listed on Pakistan stock exchange and further such data was verified from state bank of Pakistan official sire .the data range from 2012-2017 and only 10 private banks were considered as sample size which were listed on Pakistan stock exchange. The intense literature guide that the performance of banks is affected by ROA, ROE, AND EPS. Furthermore Hausman test ass applied and it was concluded that when firm’s performance is dependent variable then fixed effect is better and thee is relationship between R&D investment and performance of banks. Key words: R &D Investment, Performance of banking sector, banking sector in Pakistan

scholarly journals EFFECT OF R & D INVESTMENT ON PERFORMANCE OF BANKING SECTOR IN PAKISTAN

2018 ◽  
Vol 5 (1) ◽  
pp. 1-6
Author(s):  
Shaheen Fatima ◽  
Samreen Fatima ◽  
Nausheen Fatima
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect ◽  
Least Square ◽  
Annual Reports ◽  
New Production ◽  
Effect Model ◽  
D Investment

Research and development activity initiates and promotes new production, increase knowledge level, and introduces new techniques of technology implementation and production. The current study presents and unveils the diversifying behavior of variables affecting the performance of banking sector and R&D investment association. cross sectional fixed effect model and random effect model utilizing ordinary least square methods were applied to secondary data collected from reliable sources of annual reports published by banks listed on Pakistan stock exchange and further such data was verified from state bank of Pakistan official sire .the data range from 2012-2017 and only 10 private banks were considered as sample size which were listed on Pakistan stock exchange. The intense literature guide that the performance of banks is affected by ROA, ROE, AND EPS. Furthermore Hausman test ass applied and it was concluded that when firm’s performance is dependent variable then fixed effect is better and thee is relationship between R&D investment and performance of banks.

The Relationship between environmental Financial accounting practices and Financial performance of industrial listed companies in Palestine Stock Exchange

2021 ◽  
pp. 12-31
Author(s):  
Nedal Fareed Abdallah
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Listed Companies ◽  
Least Square ◽  
Financial Accounting ◽  
Listed Firms ◽  
Effect Model ◽  
The Relationship

The research aimed to investigate the applicability of environmental financial accounting practices in the industrial listed companies in Palestine Exchange and to examine the relationship between the disclosure level of environmental financial accounting practices on the company’s financial performance. The research adopted the descriptive-analytical approach, and the analysis method involved a content analysis of the annual financial reports data which were collected from Industrial listed firms on the Palestine Stock Exchange for the period from 2015 to 2019, including the firms disclosed and not disclose EFAP. Ordinary least square (OLS), fixed effect model (FEM), and random effect model (REM) were employed for processing the data. The results reveal that there is a relationship between the EFAP and financial performance. In addition, there is a difference in financial performance between the group of firms disclosed and not disclosed EFAP. Based on the findings, some recommendations are given for motivating EFAP in the listed firms for improving financial performance.

scholarly journals The Relevance of Good Corporate Governance Practices to Bank Performance

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Muhammad M. Ma’aji ◽  
◽  
Ediri O. Anderson ◽  
Christine G. Colon
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Random Effect ◽  
Random Effect Model ◽  
Least Square ◽  
Annual Reports ◽  
Suitable Model ◽  
Current Guideline ◽  
Board Committees ◽  
Effect Model

The purpose of this paper is to examine how corporate governance instruments impact firm value in the context of Cambodian banks. This paper considers foreign and domestic-owned banks in Cambodia. This study opts for a balanced sample of foreign and domestic owned banks for the period 2014-2018. Panel data regression is adopted for estimation of main results. The suitable model, i.e. fixed and random effect model is selected using the Hausman specification test where the result shows that the random effect model using generalized least square (GLS) regression is more suitable for the analysis. The findings show that Cambodian banks are having a substantially higher percentage of NEDs on their board, high implementation of governance procedures on board committees where on average the banks are having more than the required two board committees (audit and risk committees) as required by the Prakas on the governance of banks by National Bank of Cambodia. The average board size is around 8 members of which at least 3 members are having a postgraduate degree or a professional qualification. Policymakers need to improve on their supervisory function as the majority of the domestic and some foreign banks do not disclose their annual reports on their company website as required by the Prakas on Corporate Governance of Banks operating in Cambodia. Moreover, amendments should be made to the current corporate governance code for financial institutions as there are no explanatory notes that guide companies and therefore, the current guideline is open to individual and subjective interpretation.

scholarly journals SOES CORPORATE PERFORMANCE ON IDX AND SOME INFLUENCED FACTORS

2021 ◽  
Vol 19 (4) ◽  
pp. 884-895
Author(s):  
Zainuddin Iba ◽  
◽  
Yudi Syahputra ◽  
Ghazali Syamni ◽  
Mahdawi Mahdawi ◽  
...  
Keyword(s):  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Political Connections ◽  
Factors Affecting ◽  
Common Effect ◽  
Effect Model ◽  
Random Effect Models

State-owned enterprises are government-owned businesses that have been privatized and can be close to politicians from political parties. They are also notorious for being poorly managed. The purpose of this research is to examine how political connections, institutional ownership, cash holdings, company size, and leverage affect the performance of state-owned enterprises on the Indonesia Stock Exchange. The data for this study comes from the annual reports of 20 state-owned enterprises (SOEs) listed on the IDX from 2014 to 2018. This research model is a panel regression model that tests the common effect, fixed-effect, and random effect models. Based on the Chow test and Hausman test, the best model in this study is the random effect model. The results found that political connections, institutional ownership, and cash holding are significant factors affecting the performance of state-owned companies. Another finding was that companies with stronger political connections affect the performance of state-owned companies. On the other hand, this study did not find companies having political connections affect the performance of state-owned companies. This finding is expected to provide benefits for investors to consider SOEs companies to invest.

scholarly journals Recapitalization Effectiveness and Performance of Banks in Malaysia

2016 ◽  
Vol 8 (4) ◽  
pp. 6-12
Author(s):  
Etri Ernovianti ◽  
Nor Hayati Binti Ahmad ◽  
Ahmad Rizal Mazlan
Keyword(s):  
Banking Sector ◽  
Random Effect ◽  
Random Effect Model ◽  
Banking System ◽  
Least Square ◽  
Annual Reports ◽  
Bank Failures ◽  
Term Survival ◽  
Capital Injection ◽  
And Performance

Recapitalization through capital injection is one of the strategies for banks to strengthen their banking system from the possibility of bank failures. Banks cannot deny that capital is one of the most important components to run their business. In spite of that, few studies have been conducted to assess the effectiveness of such strategy on Asian banks. This paper investigates the effectiveness of capital injection in the Malaysian banking sector which was adversely hit by the financial crisis. Panel data from 1997 to 2014 was used. The financial data is obtained from annual reports published in Bank Scope and The World Bank database. The data were processed using Panel Least Square and Random effect model. The empirical analysis reveals that, GDP, CAR, previous year capital injection and loan write-off (LWO) explain 89.6 percent of the variance in capital injection effectiveness. CAR and LWO/TA are significant at 5 percent confidence level. The evidence from the results shows that recapitalization is vital for long term survival of the banking sector. The study recommends that in order to improve the profitability of banking sector, the banks should write off bad loans and ensure they have adequate capital either through capital injection, or growth to withstand financial risks.

scholarly journals PENGARUH PROFITABILITAS TERHADAP KEBIJAKAN DIVIDEN DENGAN ANALISA DATA PANEL PADA MULTI-BISNIS DI BURSA EFEK INDONESIA PERIODE 2007-2017

2020 ◽  
Vol 8 (1) ◽  
pp. 15-27
Author(s):  
Jan Horas Veryady Purba
Keyword(s):  
Panel Data ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Dividend Payout ◽  
Effect Model

The issue of dividends is very important to show the prospects for the company's growth in the future, and also important in the company's capital structure. Dividend policy can be influenced by profitability and other variables. In this study, profitability is chosen due to its role as main indicator that shows the company's capacity to pay dividends.  This study aims to analyze the effect of profitability on dividend policy. The study population is a company listed on the Indonesia Stock Exchange. Purposively selected eight companies that have a good liquidity category. Data for each company is taken from 2007 to 2017. With this data structure, the analysis used is panel data regression analysis. Panel data analysis models include the Common Effect Model (CEM) Fixed Effect Model (FEM) and Random Effect Model (REM). The best model was tested with the Chow test and Hausman Test and obtained The Fixed Effect Model. Dividend policy is measured by the variable dividend payout ratio. The findings in this study conclude that the dividend policy (Dividend Payout Ratio) is influenced by ROE, EPS and NPM, where these independent variables have a positive and significant influence on DPR.

scholarly journals PENGARUH MOBILE BANKING TERHADAP PROFITABILITAS BANK DI BURSA EFEK INDONESIA

Profit ◽  
2021 ◽  
Vol 15 (01) ◽  
pp. 95-103
Author(s):  
Nur Imamah ◽  
Dinda Ayu Safira
Keyword(s):  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Least Square ◽  
Mobile Banking ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Effect Model ◽  
And Control ◽  
The Impact

This study aims to determine the impact of mobile banking on bank profitability in Indonesia. The research sample consisted of 27 banks listed on the Indonesia Stock Exchange during 2015-2018. This study uses the dependent variable-return on assets (ROA), return on equity (ROE) and net profit margin (NPM), independent variable-mobile banking (m-banking), and control variables. This type of research is explanatory research by using panel data regression analysis or ordinary least square (OLS) method. The findings from the random effect model or generalized least square in this study are that mobile banking has a positive effect but statistically insignificant on ROA, ROA, and NPM. This implies that mobile banking in Indonesia can increase the profitability of banks by further increasing various digital innovations.

scholarly journals The Impact of Working Capital Management on Solvency: Empirical Study From Listed Companies in Vietnam

2021 ◽  
Vol 12 (2) ◽  
pp. 178
Author(s):  
Dau Hoang Hung ◽  
Nguyen Viet Ha ◽  
Ha Thu Huyen ◽  
Tran Thi Nga
Keyword(s):  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Least Square ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Effect Model ◽  
Collection Period ◽  
The Impact

Working capital management has a great impact on the solvency of any business entity. This paper examines the impact of working capital management on the solvency of enterprises listed on the Vietnamese stock exchange. Data were collected from the financial statements of 395 enterprises listed on the Ho Chi Minh Stock Exchange and the Hanoi Vietnam Stock Exchange with a total of 1,580 observations in the period of 2015 - 2018. The study used Ordinary Least Square (OLS), Fixed Effect Model (FEM), and Random Effect Model (REM) to investigate the impact of some variables such as average collection period index, inventory conversion cycle index, and average payment period index on the solvency in both short and long terms. The empirical results showed that the average collection period and inventory cycle have a positive impact on short-term solvency and long-term solvency while the average payment period has the opposite impact.

scholarly journals The Value Relevance of IFRS Adoption in Indonesia

2018 ◽  
Vol 20 (1) ◽  
pp. 13
Author(s):  
Juniarti Juniarti ◽  
Ferbiana Helena ◽  
Karina Novitasari ◽  
Wenny Tjamdinata
Keyword(s):  
Developing Countries ◽  
Value Relevance ◽  
Stock Exchange ◽  
Research Question ◽  
Random Effect ◽  
Random Effect Model ◽  
Accounting Information ◽  
Least Square ◽  
Ifrs Adoption ◽  
Effect Model

Pros and cons of the benefits of IFRS adoption have become an ongoing debate following the inconclusive results of prior studies. Whether IFRS increase value relevance of account­ing information or not, especially in developing countries is an interesting and relevance research question. Indonesia as one of the developing countries that committed to adopting IFRS has an interest in obtaining empiric evidence on the value relevance of accounting information after nearly five years of IFRS implementation.  This study aims to fill the need to enhance adopters' compliance with the standard. Ohlson Modified Model (1995) is used to test the value relevance of accounting information. Using longitudinal data of listed manu­facturing companies in Indonesia Stock Exchange (IDX), this study confirms that value relevance of accounting information increase after  IFRS adoption than before adoption. The results robust using Pooled Least Square and Random effect model.

scholarly journals The Relevance of Good Corporate Governance Practices to Bank Performance

2021 ◽  
Author(s):  
Muhammad M. Ma’aji ◽  
Ediri O. Anderson ◽  
Christine G. Colon
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Random Effect ◽  
Random Effect Model ◽  
Least Square ◽  
Annual Reports ◽  
Suitable Model ◽  
Current Guideline ◽  
Board Committees ◽  
Effect Model

The purpose of this paper is to examine how corporate governance instruments impact firm value in the context of Cambodian banks. This paper considers foreign and domestic-owned banks in Cambodia. This study opts for a balanced sample of foreign and domestic owned banks for the period 2014-2018. Panel data regression is adopted for estimation of main results. The suitable model, i.e. fixed and random effect model is selected using the Hausman specification test where the result shows that the random effect model using generalized least square (GLS) regression is more suitable for the analysis. The findings show that Cambodian banks are having a substantially higher percentage of NEDs on their board, high implementation of governance procedures on board committees where on average the banks are having more than the required two board committees (audit and risk committees) as required by the Prakas on the governance of banks by National Bank of Cambodia. The average board size is around 8 members of which at least 3 members are having a postgraduate degree or a professional qualification. Policymakers need to improve on their supervisory function as the majority of the domestic and some foreign banks do not disclose their annual reports on their company website as required by the Prakas on Corporate Governance of Banks operating in Cambodia. Moreover, amendments should be made to the current corporate governance code for financial institutions as there are no explanatory notes that guide companies and therefore, the current guideline is open to individual and subjective interpretation.

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