scholarly journals Do Credit Supply and Unemployment Risk Matter for Household Saving? Evidence from Poland

2021 ◽  
Vol 15 (4) ◽  
pp. 375-392
Author(s):  
Aneta Maria Kłopocka ◽  
Ryszard Wilczyński
Keyword(s):  
Financial Stability ◽  
Negative Relationship ◽  
Policy Implications ◽  
Financial Wealth ◽  
Credit Availability ◽  
Emergency Situations ◽  
Household Saving ◽  
Credit Supply ◽  
Negative Effect ◽  
Unemployment Risk

This paper contributes to the literature on the effects of uncertainty on household saving – a long-standing and extensively explored topic yet leaving a number of issues inconclusive. It concentrates on the labor income uncertainty by addressing saving against unemployment risk in terms of changes in credit supply and households’ financial wealth. Time series analysis uses dataset of quarterly observations from 2003 Q4 to 2019 Q3 for Poland. It provides empirical evidence of the negative relationship of changes in households’ financial wealth and credit availability with the household propensity to save, in line with the buffer saving model. Furthermore, it contributes to the discussion on the choice of uncertainty measures referring to the labor market with a recommendation to employ the subjective (perceived) unemployment expectation index rather than the objective unemployment rate. These results are meaningful for policy implications. They emphasize the role of credit availability for household consumption/saving decisions. In case of expansionary monetary policy and making credit easier to acquire for households, all other things equal, a negative effect on the household saving rate may be expected. This poses a question about the risk of households’ overreliance on credit and therefore about their financial stability in emergency situations.

scholarly journals Remittances, Bank Concentration and Credit Availability in Nigeria

2019 ◽  
Vol 4 (1) ◽  
pp. 66-88
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Financial Stability ◽  
Negative Relationship ◽  
Financial Sector ◽  
Credit Availability ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Money Transfers ◽  
Bound Test ◽  
Bank Concentration

The concentration of the Nigerian financial sector has long been recognised to be an important factor affecting the financial stability and welfare at an individual level in the economy. While various studies have been conducted to examine the sensitivity of this phenomenon to macro economy, little has been done to examine the effect of concentration on credit availability in Nigeria. In addition, no study has investigated the role of remittances on the relationship between bank concentration and availability of credit. Taking motivation from the Nigerian banking consolidation exercise, this article examined the effect of remittances and bank concentration on availability of credit in Nigeria. The author employed the autoregressive distributed lag (ARDL) bound test approach for co-integration on Nigerian data for the period of 1986–2015. The results revealed that bank concentration constrains the development of financial sector in Nigeria and remittances improve the level of financial development (credit availability) in the long run but inhibit the availability of credit in the short run. The negative relationship occurs in the short run because of the regulatory framework governing international money transfers in Nigeria, which simply inhibits competition. In the long run, recipients who have received remittances from informal settings would need financial products and services in which those remittances would be banked and further improve the financial sector. It was concluded that since Nigerian financial sector remained underdeveloped, the sector could be driven by encouraging inflow of remittances into the country. Our findings also persist after batteries of robustness check.

scholarly journals Efficiency loss and support for income redistribution: Evidence from a laboratory experiment

2021 ◽  
pp. 104346312110155
Author(s):  
Markus Tepe ◽  
Fabian Paetzel ◽  
Jan Lorenz ◽  
Maximilian Lutz
Keyword(s):  
Laboratory Experiment ◽  
Group Communication ◽  
Negative Relationship ◽  
Income Redistribution ◽  
Point Pattern ◽  
Minor Role ◽  
Treatment Variable ◽  
Efficiency Loss ◽  
Tax Rate ◽  
Negative Effect

Income redistribution with an efficiency loss is expected to have a twofold negative effect on support for redistribution, as it lowers egoistic support for redistribution and activates efficiency preferences. This study tests whether such a negative relationship exists, increases with the size of efficiency loss and interacts with group communication and the income position. We present a laboratory experiment in which subjects receive a randomly allocated income and must coordinate on a majority tax rate using a deliberative communication tool. The rate of money lost as a part of the redistribution process is manipulated as a treatment variable (0%, 5%, 20%, or 60%). Experimental evidence shows that efficiency loss exerts a robust negative effect on support for redistribution. The effect shows a tipping point pattern, is stronger at the lower end of the income distribution and is not fully explained by egoistic preferences. Inefficiency matters mostly for the chosen tax rate after group communication. At an efficiency loss of 60%, however, group communication does not affect support for redistribution, which implies that inefficiencies tend to play a minor role in the context of redistribution as long as they are within a moderate range. JEL Classification: C91, C92, D63, D72

Hours of Paid Work and Volunteering: Evidence From Danish Panel Data

2021 ◽  
pp. 089976402199166
Author(s):  
Hans-Peter Y. Qvist
Keyword(s):  
Panel Data ◽  
Social Integration ◽  
Negative Relationship ◽  
Time Constraint ◽  
Integration Theory ◽  
Paid Work ◽  
Constraint Theory ◽  
The Social ◽  
Negative Effect ◽  
The Relationship

The nature of the relationship between the time people spend on paid work and volunteering remains debated in the social sciences. Time constraint theory suggests a negative relationship because people can allocate only as much time to volunteering as their work responsibilities permit. However, social integration theory suggests a more complex inverse U-shaped relationship because paid work not only limits people’s free time but also plays a key role in their social integration. Departing from these competing theories, this study uses two-wave panel data from Denmark to examine the relationship between hours of paid work and volunteering. In support of time constraint theory, the results suggest that hours of paid work have a significant negative effect on the total number of hours that people spend volunteering, not mainly because paid work hours affect people’s propensity to volunteer but because they affect the number of hours that volunteers contribute.

scholarly journals Financial constraint, trust, and export performances: firm-level evidence from Africa

2021 ◽  
pp. 1-23
Author(s):  
Maty Konte ◽  
Gideon Ndubuisi
Keyword(s):  
Financial Constraints ◽  
Interpersonal Trust ◽  
Negative Relationship ◽  
Financial Constraint ◽  
African Countries ◽  
Firm Level ◽  
Country Level ◽  
The World Bank ◽  
Negative Effect ◽  
Enterprise Surveys

Abstract Several existing studies have documented a negative relationship between firm financial constraint and export activities but do not attempt to examine factors that could attenuate this relationship in Africa. In this paper, we examine the effect of financial constraint on exports in Africa and explore how the level of trust in countries where firms are located shapes this relationship. We combine the World Bank Enterprise Surveys with different measures of country-level personal and interpersonal trust computed from the Afrobarometer surveys of 19 African countries. Our results show that financial constraints negatively affect export activities. However, this negative effect is attenuated for firms that are located in trust-intensive societies. These findings are robust to different specifications. Interestingly, we find that small and medium-sized enterprises in Africa are more likely to be affected by financial constraints but also more likely to benefit from a higher level of both personal and interpersonal trust, while for larger firms only interpersonal trust matters.

scholarly journals Does Corruption Lead to Lower Subnational Credit Ratings? Fiscal Dependence, Market Reputation, and the Cost of Debt

2021 ◽  
pp. 1-19
Author(s):  
Maciej Sychowiec ◽  
Monika Bauhr ◽  
Nicholas Charron
Keyword(s):  
Credit Ratings ◽  
National Level ◽  
Negative Relationship ◽  
Cost Of Debt ◽  
Economic Implications ◽  
Sovereign Credit Ratings ◽  
Heterogeneous Effects ◽  
Federal Revenue ◽  
Negative Effect ◽  
Using Data

Abstract While studies show a consistent negative relationship between the level of corruption and range indicators of national-level economic performance, including sovereign credit ratings, we know less about the relationship between corruption and subnational credit ratings. This study suggests that federal transfers allow states with higher levels of corruption to retain good credit ratings, despite the negative economic implications of corruption more broadly, which also allows them to continue to borrow at low costs. Using data on corruption conviction in US states and credit ratings between 2001 and 2015, we show that corruption does not directly reduce credit ratings on average. We find, however, heterogeneous effects, in that there is a negative effect of corruption on credit ratings only in states that have a comparatively low level of fiscal dependence on federal transfers. This suggest that while less dependent states are punished by international assessors when seen as more corrupt, corruption does not affect the ratings of states with higher levels of fiscal dependence on federal revenue.

The impact of credit risk on the financial stability of commercial banks in Vietnam

2021 ◽  
Vol 11 (2) ◽  
pp. 67-80
Author(s):  
Nguyen Quoc Anh ◽  
Duong Nguyen Thanh Phuong
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Financial Stability ◽  
Dynamic Panel Data ◽  
Z Score ◽  
Return On Equity ◽  
Score Analysis ◽  
Negative Effect ◽  
The Difference ◽  
The Impact

This study investigates the impact of credit risk on the financial stability of Vietnamese commercial banks. The paper uses the Z-score to proxy the financial stability of banks. We use the data of 27 Vietnamese commercial banks on BankScope, during 2010 - 2019. The paper applied a dynamic panel data approach; the selected method is the difference GMM (DGMM). The key question discussed is which factor impacts on Z-score. Analysis results show the negative effect of non-performing loans on the financial stability of banks. When commercial banks have higher non-performing loans, the lower the financial stability is. Additionally, bank-specific variables such as equity on asset ratio, the return on equity, the size of the bank and set of macroeconomic variables affect the bank’s financial stability. Based on the analysis results, we imply relevant policies for the State Bank of Vietnam and commercial banks.

Closer to the state, closer to the polls? The different impact of corruption on turnout among public employees and other citizens

2018 ◽  
Vol 40 (5) ◽  
pp. 659-675 ◽  
Author(s):  
Sabina Haveric ◽  
Stefano Ronchi ◽  
Laura Cabeza
Keyword(s):  
Survey Data ◽  
Negative Relationship ◽  
The Political ◽  
World Values Survey ◽  
Public Employees ◽  
Relevant Question ◽  
Employment Sector ◽  
Negative Effect ◽  
The Government ◽  
Political Success

Research on the link between turnout and corruption has produced inconclusive evidence: while some studies find corruption to be positively related to turnout, others report a negative relationship. This article argues that the relevant question is not whether corruption has a positive or negative effect on turnout, but for whom. We hypothesize that the effect of corruption on the likelihood to vote depends on individuals’ employment sector. Public employees have different incentives to vote in corrupt settings since their jobs often depend on the political success of the government of the day. Hence, while corruption dampens turnout among ordinary citizens, public employees are more likely to vote in highly corrupt countries. Analysis of World Values Survey data from 44 countries, shows that the differential in voting propensity between public employees and other citizens gets larger as corruption increases, partially confirming our expectations.

scholarly journals Tree-Ring Growth of Larch (Larix decidua Mill.) in the Polish Sudetes—The Influence of Altitude and Site-Related Factors on the Climate–Growth Relationship

Forests ◽  
2018 ◽  
Vol 9 (11) ◽  
pp. 663 ◽  
Author(s):  
Małgorzata Danek ◽  
Monika Chuchro ◽  
Adam Walanus
Keyword(s):  
Tree Ring ◽  
Climatic Factors ◽  
Negative Relationship ◽  
Thermal Conditions ◽  
Cambial Activity ◽  
Negative Influence ◽  
Larix Decidua ◽  
Related Factors ◽  
Local Conditions ◽  
Negative Effect

In this paper, the first study of a regional character on the influence of climatic factors on the tree-ring growth of European larch (Larix decidua Mill.) growing in the Polish Sudetes is presented. The obtained results indicate the relatively high diversity of the climatic signal observed in the tree rings of larches growing in the Sudetes. The most significant differentiating factor is altitude. The results suggest that the possible influence of local conditions (e.g., summit proximity, soil and bedrock characteristics, and exposure to strong winds) could also be of importance. A positive relationship between tree-ring growth and May temperatures was noted throughout the area; this indicates the principal importance of thermal conditions during the initial stage of cambial activity and tree-ring formation in larches from the Sudetes. The negative effect of the temperatures in the previous summer upon the tree-ring growth of larch in the subsequent year was also observed. The studies also indicate the negative influence of the water stress in summer (particularly in July of the previous year) upon the growth of trees. The negative relationship between tree-ring growth and the previous November temperature could be explained by the need for a late-autumn cooling, which affects the development of assimilation apparatus in spring of the subsequent year, which indirectly affects the tree-ring growth in the same year.

How does bank liquidity creation affect non-performing loans in the MENA region?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anas Alaoui Mdaghri
Keyword(s):  
Generalized Method Of Moments ◽  
Balance Sheet ◽  
Policy Implications ◽  
Mena Region ◽  
Policy Makers ◽  
Content Type ◽  
Mena Countries ◽  
Negative Effect ◽  
Short And Long Term ◽  
Conventional Banks

PurposeThe study aims to empirically examine the effect of bank liquidity creation on non-performing loans (NPLs) in the Middle East and North Africa (MENA) region.Design/methodology/approachBerger and Bouwman's (2009) three-step methodology was employed to calculate the level of liquidity creation of a selected sample of 111 commercial banks in ten MENA countries from 2010–2017. Next, the two-step system generalized method of moments (GMM) estimator was used to investigate the linkage between bank liquidity creation and NPLs.FindingsThe results demonstrated a significant negative effect of bank liquidity creation on NPLs in the short and long term, implying that liquidity creation through both on- and off-balance sheet activities decreases NPLs. These findings accord with the “economic-enhancing” view. Furthermore, regression analysis investigated whether this relationship remained similar for Islamic and conventional banks. The results showed that liquidity creation diminishes Islamic and conventional bank NPLs.Research limitations/implicationsThe empirical findings raise several significant policy implications. Bank liquidity creation may decrease rather than increase NPLs, although the process of liquidity creation is viewed as risky by rendering banks more illiquid. Therefore, policy-makers should encourage bank liquidity creation to stimulate the economy. In a robust economy, borrowers are more likely to repay their debts, consequently diminishing banks' NPLs.Originality/valueTo the best of the author's knowledge, the current study is the first to provide empirical evidence on the effect of bank liquidity creation on NPLs in MENA countries.

The impact of trust on social and financial capital acquisition: A resource integration perspective in minority-owned entrepreneurial organisations

2022 ◽  
pp. 026624262110553
Author(s):  
Ronald L Pegram ◽  
Camelia L Clarke ◽  
James W Peltier ◽  
K Praveen Parboteeah
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Policy Implications ◽  
Financial Capital ◽  
Resource Integration ◽  
Entrepreneurial Success ◽  
Negative Effect ◽  
Research Findings ◽  
The Impact ◽  
Minority Entrepreneurs

Although effective resource integration is a critical requisite for entrepreneurial success, the literature suggests there are crucial gaps for minority entrepreneurs. We examine how interracial distrust (ID), an indicator of the extent to which minority entrepreneurs distrust other races, is related to internal and social capital. We examine the relationships of such capitals on the willingness to borrow from banks and friends, and explore the link with firm performance. Using a sample of 276 primarily African American entrepreneurs, we find support for most of our hypotheses. We find that ID is negatively associated with external social capital and a willingness to borrow from banks. Surprisingly, we found that ID had a negative effect on internal social capital and a willingness to borrow from friends. We also found that internal and external social capital was positively related to firm performance. We discuss the implications of some of these surprising research findings as well as the policy implications.

Sign in / Sign up

Export Citation Format

Share Document