Cryptocurrency: usability perspective versus volatility threat

PurposeThe objective of this study is to examine the nature of cryptocurrencies, risks involved in using it due to its volatile nature, advantages, disadvantages and its functions as money.Design/methodology/approachThis is an inductive approach to a descriptive analysis (Qualitative research). In order to come to an adequate conclusion, we reviewed several studies and articles previously published in this field related to our research questions, and then explored the nature of Cryptocurrencies, their advantages and disadvantages, risks associated with cryptocurrency usage and their user-friendliness in Saudi Arabia.FindingsThe findings of this study reveal that anonymity and concealment are important aspects of cryptocurrencies. This system does not follow a transparent process that can make it parallel to conventional fiat currency.Research limitations/implicationsAlthough this study focuses on the issue of trust, it fails to recognize more technological factors hampering its transaction mechanism instead of enhancing it, owing to a lack of facts and knowledge.Practical implicationsLike conventional transaction system users must sign their crypto transactions that others must duly verify easily. Once a promise is made, one will not be able to back out of it until it is protected from revocation by the signer.Originality/valueIn comparison with reviewed literature, this study focuses more on the issue of volatility, which accounts for the fact that cryptocurrency has not been accepted as a permanent tool of monetary policy. Additionally, the study finds that the Saudi public is largely pessimistic toward such currencies.

Increasing non-oil revenue potentiality through digital commerce: the case study in KSA

PurposeThis study mainly focuses on the potentiality of the e-commerce industry's opportunities and limitations in the Kingdom of Saudi Arabia (KSA) specifically toward non-oil revenue sectors.Design/methodology/approachE-commerce contribution to the retail market industry becomes more global and more flexible with the rapid growth of the Internet and information technology revolution. A new way of conducting business is rendered by e-commerce, which helps to make a profit electronically.FindingsThe main contributions of e-commerce are management of company operations, easy and cheaper ways of extending their markets and coordinating with the value chain across different borders. In addition, the Internet and e-commerce are responsible for removing language barriers, cultural diversification and extending the market to the national boundaries. The countries would have many innovative and dynamic aspects by the beginning of the global market that increases national revenue, market, employment opportunity, capital and access to technology and information.Originality/valueAt present, KSA's national revenue mostly depends on oil and its related commodities, while other trades compete with the global market and increase national income. So, it is essential to increase other Saudi products to reach a global business level through e-commerce. Moreover, the study suggests accessing new markets and participating in global production to improve e-commerce structure without affecting current employment patterns, industry structure, productivity and Saudi culture.

Financial sector sustainability and performance – Policy Imperative for the monetary authorities'

PurposeThe objective of this study is to ascertain whether financial sector sustainability had any correlation with financial sector performance in Nigeria and recommend appropriate policy directions.Design/methodology/approachThe study selected four major Nigerian banks namely Zenith Bank Guaranty Bank United Bank for Africa and First Bank of Nigeria as its sample and covered 2010 to 2019. Secondary panel data were obtained from the published financial Statements of the banks and subjected to analytical techniques of panel unit root tests descriptive statistics panel least square and Co-integration statistical techniques at the 5% level of significance.FindingsThe findings revealed that the exogenous variables (SUST) have significant Impact on the endogenous variable (ROA, ROE) in the short-run but insignificant in the long run.Research limitations/implicationsThe period covered was limited to 10 years and has an African development focus with emphasis on West Africa, Nigeria. However, the implication could be general to most or all economic and financial landscape. It shows that there is a correlation between financial sector sustainability and return on assets and returns on equity.Practical implicationsMonetary authorities should develop applicable annual performance sustainability framework for all banks; and set performance targets, that will be measured and monitored by appropriate regulatory unit periodically.Social implicationsThe financial sector survival is directly related to its contribution towards the survival and development of its host community and operating environment.Originality/valueThis approach is novel in the sense that its approach is practical and measurable, which most research work have not focused on.

Corporate performance volatility: a micro-level perspective

PurposeThis study examines how specific micro-level macroeconomic indicators influence corporate performance volatility among US corporate bodies in the short run.Design/methodology/approachThe study employs error correction autoregressive distributed lagged (ARDL) model (ECM) to examine how micro-level variables influence volatility associated with corporate performance in the short run.FindingsThis paper finds that disaggregated or micro-level variables examined, tend to exhibit features that are not readily apparent from the aggregate variable from which such variables are derived. For instance, reported empirical estimate suggests that, growth in expenditures on services and nondurable goods tend to lower volatility associated with corporate performance, whereas government expenditures and expenditures on durable goods rather worsens volatility associated with corporate performance, all things being equal. Additionally, presented empirical estimates further provide evidence suggesting that macroeconomic uncertainty and inflation uncertainty significantly moderate or influence the extent to which disaggregated variables impact corporate performance volatility.Originality/valueCompared to related studies in the reviewed literature, this study rather examines volatility associated with corporate performance instead of the corporate performance indicator itself. Additionally, this paper also examines how disaggregated variable instead of aggregate variables impact such volatility. Finally, the moderating role of key macroeconomic conditions in such a relationship is also examined.

Impact of economic growth on carbon emissions in selected West African countries, 1980–2019

PurposeThis study investigated the impact of economic growth on carbon emissions on selected West African countries between 1980 and 2019. Simon-Steinmann's economic growth model provides the relevant theoretical foundation. The main objective of this study was to ascertain whether economic growth will impact carbon emissions.Design/methodology/approachThe study selected six-sample countries in West Africa and used secondary data obtained through the World Bank Group online database covering the period 1980–2019, employing panel econometric methods of statistical analysis.FindingsThe outcome indicates that the independent variable showed a positively significant impact on the dependent variable for the pooled samples in the short-run, with significant cointegration.Research limitations/implicationsThe study concluded that economic growth significantly impacts the emissions of carbon, and a 1% rise in economic growth will result to 3.11121% unit rise in carbon emissions.Practical implicationsPolicy implementation should encourage the use of energy efficient facilities by firms and government and the establishment of carbon trading hubs.Social implicationsFailure by governments to heed the recommendations of this research will result to serious climate change issues on economic activities with attendant consequences on human health within the region and globally.Originality/valueThis is one of the comprehensive works on subject covering the West African region within the continent.

Modelling the financial intermediation function of banks and economic growth in sub-Saharan Africa

PurposeThe purpose of this study is to investigate the effect of financial intermediation functions of banks on economic growth in sub-Saharan Africa.Design/methodology/approachThe study employs data from 11 sub-Saharan African countries over the period 1970–2016. Using broad money supply, bank credit to the private sector and bank deposits as financial intermediation measures, the authors apply the random effects (RE) technique based on the recommendation of the Breusch–Pagan test.FindingsThe results show that except for bank deposits, broad money supply and bank credit to the private sector significantly influence economic growth. While broad money has a negative relationship with growth, bank credit to the private sector and bank deposits are positively correlated with economic growth.Originality/valueThe relationship between financial intermediation and economic growth remains unsettled, as results vary across countries. Besides, in developing countries' perspective, extant studies are largely focused on individual countries to investigate the financial intermediation-growth nexus. In this study, the authors take a different direction by employing a panel approach and thus adding to the few cross-country studies on the subject matter. Also, unlike other studies that have focused on a single indicator of financial intermediation, this study uses three indicators of financial intermediation which broadly reflect the intermediation functions of banks.