scholarly journals A Comparative Study between Informal and Formal Finance: A Literature Review

2019 ◽  
Vol 8 (4) ◽  
pp. 231
Author(s):  
Mai Ahmed Abdelzaher
Keyword(s):  
Rural Communities ◽  
Positive Impact ◽  
Credit System ◽  
Return On Assets ◽  
Private Companies ◽  
Informal Finance ◽  
Informal Credit ◽  
Asymmetrical Information ◽  
Predominant Form ◽  
Formal Finance

The informal credit system is a prevailing form of economic exchange in emerging countries. It is the predominant form of credit in rural communities because it is based on a culture of reciprocity (Family participation-relatives-Loyalty-friends-Neighbour). Informal finance contributes significantly to the growth of small and medium-sized enterprises (SMEs). The present study justifies the wide application of informal finance. We find that these projects suffer from the problem of asymmetrical information. They also offer few guarantees. Informal financiers have an advantage over formal financial organizations, in gathering information on lenders in SMEs. The aim of our study was to explore formal and informal credit systems and to explain the prevalence of informal systems in developing countries. The study concluded that credit from informal sources is superior to credit from formal sources because it results in low rates of default on loans. The study also showed that informal finance and commercial credit have a positive impact on the performance of private companies, measured using the rate of return on assets.

Informal Credit System Through Social Entrepreneurs in Tiruchirappalli District, Tamil Nadu

2012 ◽  
Vol 3 (6) ◽  
pp. 21-23
Author(s):  
Dr. C. Paramasivan Dr. C. Paramasivan ◽  
◽  
T. Kannan T. Kannan
Keyword(s):  
Tamil Nadu ◽  
Credit System ◽  
Social Entrepreneurs ◽  
Informal Credit

The performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

scholarly journals Socioeconomic Conditions and Landowners’ Perception Affect the Intention to Restore Polylepis Forests in the Central Andes of Peru

Forests ◽  
2021 ◽  
Vol 12 (2) ◽  
pp. 118
Author(s):  
Lunel Joseph ◽  
Raúl Marino Yaranga Cano ◽  
Marco Arizapana-Almonacid ◽  
Marcela Venelli Pyles ◽  
Flávia Freire de Siqueira ◽  
...  
Keyword(s):  
Rural Communities ◽  
Mixed Model ◽  
Linear Mixed Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Central Andes ◽  
Socioeconomic Conditions ◽  
Native Flora ◽  
The Family ◽  
Andes Region

Research Highlights: Families more dependent on crops as the main source of income of properties have a greater intention of restoring Polylepis forest areas. However, this intention reduces with the increase of family dependence on subsistence products supplied by Polylepis forests. Properties where the chances of restoration of Polylepis forests are greater are those where the educational and technical level is better. Objectives: We aimed to comprehend which socioeconomic factors of rural properties and families’ perception were determinant for the intention to restore Polylepis forests in the Central Andes region of Peru. Material and Methods: We collected data through visits and the application of questionnaires. We selected 13 rural communities in the Tulumayo River Basin. We randomly sampled 10 to 20 families in each community, depending on its size, totaling 200 families. We used generalized linear mixed model (GLMM) to test which variables affect the intention to restore the forest. Results: When crops are the main source of income in the property, the families have more intention to restore Polylepis areas, on the other hand, when Polylepis forests are an important source of products for the family subsistence, the intention to restore forests reduces, indicating that higher technological status has a positive impact on restoration. The perception that Polylepis forests are important for the existence of water sources had a positive impact on the families’ intention to restore the areas. However, the perception that Polylepis forests are important for native flora persistence had a negative impact on the intention to restore their areas. Conclusions: Our results showed that investment in improving the productivity of the properties and in the education of their landowners should increase the success of eventual programs for restoration of Polylepis forests.

Does Bank Profitability Stimulate Economic Growth in the Arab Region?

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Omar Ghazy Aziz
Keyword(s):  
Financial Development ◽  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Arab Countries ◽  
Return On Assets ◽  
Bank Profitability ◽  
Arab Region ◽  
Return On Equity ◽  
The Impact

AbstractThis study empirically investigates the impact of bank profitability, as a complementary measure of financial development, on growth in the Arab countries between 1985 and 2016. Using a generalized method of moments (GMM) estimation to test the impact of the bank profitability on growth, this study utilises two variables in the econometric model which are return on assets and return on equity. This study reveals that both variables of bank profitability are positive and significant. This confirms that the bank profitability, beside other financial development variables, has positive impact on the growth. This study points out some important implications based on this result.

scholarly journals Credit Accessibility to Vulnerable Sections: Management Perspective

2007 ◽  
Vol 6 (1) ◽  
pp. 86-101
Author(s):  
Veerashekharappa .
Keyword(s):  
Asymmetric Information ◽  
Participatory Approach ◽  
Rural Poor ◽  
Mutual Trust ◽  
Credit System ◽  
Informal Credit ◽  
Management Perspective ◽  
Resource Poor ◽  
Banking Relationship ◽  
Credit Institutions

Despite the vast expansion of the formal credit system in India, the dependence of the rural poor on informal credit institutions continues in some areas especially for meeting the emergency credit requirements. Such dependence is pronounced in the case of marginal farmers, landless labourers, petty traders and rural artisans, etc., particularly in the resource-poor areas. And credit needs of these sections determined in a complex socio-economic milieu, where it is difficult to adopt project lending approach as followed by banks and where the dividing line between credit for "consumption" and "productive" purposes is blurred (NABARD 1999). It is in this context, peoples' management in making credit to poor assumes significance. The participatory approach bring out the mutual trust and over comes the asymmetric information between the members, which is necessary for initiating banking relationship based on trust and confidence.

scholarly journals Ownership And Firm Performance: The Experience Of Saudi Arabias Emerging Economy

2011 ◽  
Vol 8 (8) ◽  
Author(s):  
Abuzar M. A. Eljelly
Keyword(s):  
Saudi Arabia ◽  
Firm Performance ◽  
Stock Market ◽  
Market Performance ◽  
Return On Assets ◽  
Private Companies ◽  
Return On Equity ◽  
Net Profit ◽  
The Government ◽  
The Relationship

This study examines the relationship between firm ownership and corporate performance in Saudi Arabia, using a sample of Listed Private Companies (LPCs) and Listed Government Related Companies (LGRCs). The study compares the operating and market performance of the LPCs and LGRCs during the period 2000-2003 and found that, in general, LGRCs outperform or match the performance of LPCs. More specifically, the study finds that LGRCs tend to mostly outperform LPCs in terms of profitability, as measured by Return on equity (ROE) and Net Profit Margin (NPM), operating efficiently, as measured in terms of Return on assets (ROA), and match them in their stock market risk adjusted performance. The study concludes that these results may have implications for the issue of privatization programs which the government has recently started.

scholarly journals The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt

2019 ◽  
Vol 14 (10) ◽  
pp. 1
Author(s):  
Hanaa A. El-Habashy
Keyword(s):  
Performance Indicators ◽  
Corporate Performance ◽  
Positive Impact ◽  
Accounting Conservatism ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Conservative Accounting ◽  
The Impact ◽  
Positive Effect

This study aims to investigate the impact of conservative accounting on corporate performance indicators of Egyptian firms. A sample of balanced data for the 40 most active non-financial companies was collected in the period 2009-2014 to test hypotheses. Panel regression models were used for data analysis. Givoly & Hayn (2000) indicator is used as a benchmark for measuring accounting conservatism. The corporate performance indicators used in this study are return-on-assets (ROA) and return on equity (ROE) representing accounting performance measures, as well as Tobin’s Q which measures market performance. The results of the research show that accounting conservatism has a significant positive impact on corporate performance indicators. This reflects the positive effect of corporate performance on shareholders that leads to a strong corporate financial position. To the best of our knowledge, no study has been conducted in Egypt as an emerging economy.

scholarly journals Impact of Perceived Academic Advisor Support on Academic Motivation

2021 ◽  
Vol 11 (2) ◽  
pp. 168
Author(s):  
Li Sun ◽  
Ning Cheng
Keyword(s):  
Autonomy Support ◽  
Academic Motivation ◽  
Negative Impact ◽  
Positive Impact ◽  
Academic Career ◽  
Ministry Of Education ◽  
Credit System ◽  
Academic Advisor ◽  
Student Autonomy ◽  
Significant Negative Impact

Improving the credit system is a new requirement of the Ministry of Education of China. The academic advisor system is an essential part of the credit system management and plays an important role in the planning and guidance of students’ academic career. Therefore, this paper studies the influence of students’ perception of academic advisor support on academic motivation. It surveyed 455 undergraduates from universities and colleges in Henan Province that implemented the academic advisor system, and found that students have a high degree of academic motivation. The main results of the research are as follows: 1) Freshmen’s perception of academic advisor support is higher than that of senior students; 2) Perceived autonomy support and engagement support have a significantly positive impact on intrinsic academic motivation; 3) Perceived opportunity support has a significantly positive impact on extrinsic academic motivation; 4) Perceived relationships support has a significant negative impact on amotivation. This research can help higher education workers to value student autonomy in learning, actively communicate with students, and provide resource support for the realization of student goals.

scholarly journals Effect of Bank Innovations on Profitability and Return on Assets (ROA) of Commercial Banks in Lebanon

2017 ◽  
Vol 9 (4) ◽  
pp. 35 ◽  
Author(s):  
Hiyam Sujud ◽  
Boutheina Hashem
Keyword(s):  
Social Sciences ◽  
Commercial Banks ◽  
Positive Impact ◽  
Credit Cards ◽  
Internet Banking ◽  
Mobile Banking ◽  
Significance Tests ◽  
Return On Assets ◽  
Point Of Sale ◽  
The Impact

The purpose of this research is to study bank innovations in the field of mobile banking, debit and credit cards, automated machines (ATM), internet banking, point of sale terminals (PST) and electronic funds transfer (EFT). It purposely looked into those innovations in relation to their influence on profitability and return on assets (ROA) of Lebanese commercial banks. Data was collected through a research questionnaire, and statistical analysis was done using the Package of Social Sciences Software (SPSS). The results revealed that there is a significant positive impact of bank innovations on profitability and return on assets of Lebanese commercial banks and significance tests also showed that the impact was statistically significant. Based on the results of the study, it can be concluded that bank innovations affect profitability and return on assets (ROA) of commercial banks in Lebanon positively.

scholarly journals Government Subsidy, Corporate Pay-Gap and Firm’s Financial Performance: Evidence from China

2019 ◽  
Vol 8 (3) ◽  
pp. 86
Author(s):  
Danlu Bu ◽  
Homayoon Shalchian ◽  
Rong Huang ◽  
Fang Hu
Keyword(s):  
Financial Performance ◽  
Economic Performance ◽  
Positive Impact ◽  
Government Subsidy ◽  
Financial Success ◽  
Managerial Control ◽  
Pay Gap ◽  
Private Companies

We analyze the relation between government subsidization and the corporate pay-gap between executives and employees for a relatively large number of Chinese corporations. Our results show that government subsidy, under managerial control, can be used to increase executives’ compensation, and consequently, the corporate pay-gap in China. Our results also show that the effect of government subsidy on the corporate pay-gap is more significant among state-owned enterprises (SOEs) rather than private companies (non-SOEs). Finally, our results suggest that while the total pay-gap between the executives and employees has a positive impact on a firm’s financial success, the pay-gap caused by government subsidy negatively affects the firm’s economic performance.  

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