scholarly journals The Impact of the Debt Ratio, Total Assets, and Earning Growth Rate on WACC: Evidence from Nepalese Commercial Banks

2020 ◽  
pp. 16-23
Author(s):  
Prem Bahadur Budhathoki ◽  
Chandra Kumar Rai
Keyword(s):  
Growth Rate ◽  
Commercial Banks ◽  
Predictor Variable ◽  
Ordinary Least Squares ◽  
Predictor Variables ◽  
Debt Ratio ◽  
Earning Growth ◽  
Earnings Growth ◽  
The Impact ◽  
Made In

This study examined the impact of the debt ratio, total assets, and earnings growth rate on banks’ WACC. This study employed bank scope data of twenty-eight commercial banks during the single period of 2018. Altogether, there were 28 observations were made in the study. The ordinary least squares model was used to analyze the data. The results indicated that two predictor variables debt ratio and total assets significantly affected the bank’s WACC. But the predictor variable earnings growth rate did not significantly affect banks’ WACC. The results of this study could help bankers and policymakers to take effective action to reduce banks’ WACC.

scholarly journals Mitigating the Impact of Field and Image Registration Errors through Spatial Aggregation

2019 ◽  
Vol 11 (3) ◽  
pp. 222 ◽  
Author(s):  
John Hogland ◽  
David L.R. Affleck
Keyword(s):  
Linear Models ◽  
Predictor Variable ◽  
Spatial Aggregation ◽  
Predictor Variables ◽  
Remotely Sensed Data ◽  
Substantial Impact ◽  
Landscape Characteristics ◽  
Registration Errors ◽  
Spatial Registration ◽  
The Impact

Remotely sensed data are commonly used as predictor variables in spatially explicit models depicting landscape characteristics of interest (response) across broad extents, at relatively fine resolution. To create these models, variables are spatially registered to a known coordinate system and used to link responses with predictor variable values. Inherently, this linking process introduces measurement error into the response and predictors, which in the latter case causes attenuation bias. Through simulations, our findings indicate that the spatial correlation of response and predictor variables and their corresponding spatial registration (co-registration) errors can have a substantial impact on the bias and accuracy of linear models. Additionally, in this study we evaluate spatial aggregation as a mechanism to minimize the impact of co-registration errors, assess the impact of subsampling within the extent of sample units, and provide a technique that can be used to both determine the extent of an observational unit needed to minimize the impact of co-registration and quantify the amount of error potentially introduced into predictive models.

scholarly journals Measuring the Effect of the Internet on Economic Growth: The Case of Saudi Arabia

2020 ◽  
Vol 12 (12) ◽  
pp. 61
Author(s):  
Hisham J. Bardesi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Saudi Arabia ◽  
Internet Access ◽  
Ordinary Least Squares ◽  
The Internet ◽  
Macroeconomic Performance ◽  
The Impact

The purpose of this study is to examine and assess the impact of the Internet on economic growth in Saudi Arabia. Various studies show that there is a relationship between the growth rate of GDP and the Internet, as estimated by Internet user numbers. In this paper, the ordinary least squares (OLS) model is utilized to study the economic impact of Internet Access from 1994 to 2018, which has had a profound effect on the market structure of many sectors and Saudi’s global macroeconomic performance. The study constructs a model to investigate any significant impact of the Internet on the Saudi economy. Finally, this paper suggests that an understanding of the role of the Internet is essential for policymakers who plan to promote new forms of economic growth in the future. To take a long-term view implies working on technologies that could improve the economy and people’s lives by creating a technological ecosystem in and around Saudi Arabia, along with other major economies.

scholarly journals The impact of firm size on the performance of Vietnamese private enterprises: A case study

2021 ◽  
Vol 19 (2) ◽  
pp. 243-250
Author(s):  
Cuong Vu Hung ◽  
Tuong Phi Vinh ◽  
Binh Dang Thai
Keyword(s):  
Growth Rate ◽  
Firm Size ◽  
Ordinary Least Squares ◽  
Quantitative Model ◽  
Private Enterprises ◽  
Least Squares Regression ◽  
Size Growth ◽  
Total Labor ◽  
Enterprise Survey ◽  
The Impact

This article investigates the effect of firm size on the performance of Vietnamese private enterprises. Based on the data from the Annual Enterprise Survey from 2009 to 2018, this study uses an ordinary least-squares regression model (OLS) to point out the effects of firm size (growth rate, total assets, and total labor) on the performance of Vietnamese private enterprises in both static and dynamic states. According to the results of the quantitative model, total assets are the biggest factor for determining firm performance, followed by total labor and growth rate. The results highlight the issue in Vietnamese private enterprises development in terms of scale, despite the fact that their number is growing, as the scale of enterprises decreases (the proportion of micro and small enterprises increases, but the proportion of medium and big enterprises decreases). Besides, the disadvantages of scale also negatively affect the development process of Vietnamese private enterprises, including accessing capital, increase in production or productivity, business expansion, and improving competitiveness. AcknowledgmentsThis research is supported by the National Science Project “Development of Private Enterprises in the Southwest Region in the new context” (KHCN-TNB/14-19/X15).

Impact of Bank Operational Efficiency Using a Three-Stage DEA Model

2014 ◽  
Vol 3 (4) ◽  
pp. 32-50 ◽  
Author(s):  
Mu-Shun Wang ◽  
Chihuang Lin
Keyword(s):  
Technical Efficiency ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Ordinary Least Squares ◽  
Capital Adequacy ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Financial Industry ◽  
Dea Model ◽  
The Impact

In this study the authors use a three-stage sequential technique to develop a Data Envelopment Analysis (DEA) model for examining a bank's technical efficiency index. Internal risk and environmental risk are incorporated into this model to accommodate the well-known BASEL III Accord (required capital adequacy ratio in the financial industry) and to ensure the amount of derivatives turnover ratio is at the level defined by industry best-practices. Information is obtained from 34 Taiwanese commercial banks for the period from 2008 to 2011 following the global financial crisis. The Malmquist total factor productivity index (TFP) is also employed to measure the impact of changes in productivity on the panel data. Empirical results derived from the DEA approach show a gain in technical efficiency and scale efficiency in the industry after adjusting the slack variables when using the corrected ordinary least squares (COLS) regression model. The results indicate that commercial banks need to diversify to increase their market share when dealing with derivatives which are associated with higher risk. The Balk's Malmquisit TFP index shows a decrease in bank productivity and improvement in pure technical efficiency. In this study the authors found that after risk-adjustment there was a distinct inefficient unit decrease and but a marginal unit increase in efficiency.

scholarly journals The Effects of Alliance Strategies on the Cost Efficiency of Saudi Commercial Banks

2019 ◽  
Vol 9 (1) ◽  
pp. 84
Author(s):  
Hassan K. Almahdi
Keyword(s):  
Strategic Alliances ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Research Problem ◽  
Ordinary Least Squares ◽  
Regression Equations ◽  
The Public ◽  
The Cost ◽  
The Impact

The Objective of this study is to determine the influence of strategic alliances on the cost efficiency of Saudi banks. For this, we first develop a theoretical framework paving the way for an empirical study that refers to a sample of 09 Saudi banks adopted to verify this relationship. It is therefore, necessary to list the interests of strategic alliances in the banking sector and to question the role of public and foreign as wellas public and private alliance strategies in improving the cost efficiency of Saudi commercial banks.A quantitative approach has been adopted to explore and understand the research problem. We begin by regressing the ordinary least squares efficiency on a series of explanatory variables. The conceptual research model is tested by two different regression equations that will be estimated simultaneously. The first regression, aims to test the impact of the public-foreign alliance on the efficiency of the banks in our sample. As for the second regression, it is carried out to test the impact of the public-private alliance on the latter.The results of this study prove that the creation of an alliance agreement allows Saudi commercial banks to improve their efficiency and constitute for them an opportunity besides an interesting strategic option. Forthermore, public-private and public-foreign alliances are strategies that can improve the efficiency of public banks, increase their competitiveness and reduce their fragility.

scholarly journals Contribution of Tourism Industry in Indian Economy: an Analysis

2020 ◽  
Vol 8 (6) ◽  
pp. 1994-2000
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Least Squares Method ◽  
Strong Relationship ◽  
Ordinary Least Squares ◽  
Tourism Industry ◽  
Indian Economy ◽  
Foreign Tourism ◽  
Travel Industry ◽  
The Impact

The tourism and travel industry is the biggest and most diverse industry in the universe. The impact of tourism on increasing employment and foreign exchange earnings, the boom in domestic industries, the expansion of international cooperation have changed the attitudes of countries around the world and played an important role in the policymaking of Governments. So the purpose of this research paper is to investigate the Impact of Foreign Tourism Receipts growth on the growth rate economic in Indian economy during the period of 2000-2019. In this study we are using the Ordinary Least Squares method (OLS method).The results show that there is a positive relationship between economic growth rate and growth of foreign tourism revenue growth but this relationship is very weak its mean that the impact of the growth of foreign tourism receipt on economic growth is less; We can also say that there is no strong relationship between these two variables.

scholarly journals Globalization of Commercial Banks in Nigeria: Impact of Information and Communication Technology (1988 – 2019)

2021 ◽  
Vol 9 (12) ◽  
pp. 25-46
Author(s):  
Titus Freeman Ifeanyi ◽  
Ruth C. Ukah
Keyword(s):  
Commercial Banks ◽  
Ordinary Least Squares ◽  
Minimum Variance ◽  
Information And Communications Technology ◽  
Foreign Banks ◽  
Communications Technology ◽  
Positive Role ◽  
Ex Post ◽  
Analysis Technique ◽  
The Impact

The study examined the globalization of commercial banks in Nigeria: impact of information and communications technology for the period 1988 to 2019.   It was necessitated by the call for more insight on how information and communications technology impacts globalization of commercial banks in Nigeria.   It specifically determined the impact of teledensity on loans from non-resident banks to Nigeria, the impact of internet penetration on foreign banks asset in Nigeria, and the impact of banking market size on consolidated foreign claims of Bank of International Settlement in Nigeria.  The study adopted ex-post research design in the analysis of data. Data analysis technique is adopted ordinary least squares (OLS) method because of the desirable properties (linearity, unbiasedness and minimum variance, among other unbiased estimators) it possesses. The findings show that ICT plays significant positive role in commercial bank globalization. Recommendations were made on what should be done to ensure the development of the ICT sector in Nigeria.

scholarly journals Does The Enhancement of Profitability Necessarily Reduce Bank Credit Risk?

2020 ◽  
Vol 15 (12) ◽  
pp. 93
Author(s):  
Liyue Wang
Keyword(s):  
Growth Rate ◽  
Risk Management ◽  
Credit Risk ◽  
Data Model ◽  
Commercial Banks ◽  
Threshold Model ◽  
Bank Credit ◽  
Panel Data Model ◽  
Net Profit ◽  
The Impact

Based on the data of China's listed banks from 2010 to 2018, this paper uses panel data model and threshold model to examine the impact of profitability on credit risk of commercial banks. The results show that: (1) After controlling the influence of bank size, the growth rate of net profit is negatively correlated with credit risk; (2) With the same growth rate of net profit, the larger the bank scale, the smaller the credit risk. At the same time, with the decrease of the growth rate of net profit, the influence of bank size on credit risk increases; (3) When the bank scale is large enough, the growth rate of net profit is positively correlated with the credit risk of the bank. This paper discusses the interaction between bank size and profitability and credit risk, which is of guiding significance to banks’ risk management.

Equity Estimation and Assessing Market Response

1993 ◽  
Vol 30 (4) ◽  
pp. 437-451 ◽  
Author(s):  
Albert R. Wildt
Keyword(s):  
Least Squares ◽  
Explanatory Power ◽  
Predictor Variable ◽  
Ordinary Least Squares ◽  
Predictor Variables ◽  
Market Response ◽  
Response Functions ◽  
Coefficient Estimates ◽  
Simulation Experiments ◽  
True Coefficient

Equity estimation has been proposed as a possibly superior technique for estimating market response functions in the presence of high predictor-variable collinearity. The relative performance of equity, ridge, and ordinary least squares (OLS) estimators is examined using simulation experiments. In part, findings are consistent with prior research and indicate that, under certain conditions, equity outperforms OLS and ridge on a number of important criteria, and equity yields coefficient estimates that assign more equal explanatory weight to correlated predictor variables than does OLS or ridge. As collinearity increases, this tendency becomes very pronounced, to the point where equity yields estimated standardized coefficients more equal in magnitude irrespective of other conditions, such as true coefficient values and model explanatory power.

scholarly journals Lending and Cash Required Reserve: Empirical Evidence from Ethiopian Commercial Bank

2018 ◽  
Vol 14 (13) ◽  
pp. 179 ◽  
Author(s):  
Mitku Malede Yimer
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Predictor Variable ◽  
Bank Lending ◽  
Least Square ◽  
Financial Data ◽  
Ordinary Least Square ◽  
Credit Creation ◽  
The Impact ◽  
The Relationship

The study was mainly intended to determine the effect of cash required reserve on commercial bank lending in Ethiopia using panel data of eight purposively chosen commercial banks over the period of eleven years (2005 to 2015). The investigation tested the relationship between commercial bank lending and cash required reserve. Eleven years financial data of eight purposively chosen commercial banks were used for analysis purpose. Ordinary least square model was applied to test the impact of predictor variable on commercial bank lending. The result suggests that, there is no significant relationship between commercial bank lending and cash required reserve in Ethiopian commercial. This study suggests that commercial bank have to give less emphasis to cash required reserve because it doesn’t weakens banks credit creation ability and does not leads a bank to be insolvent.

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