Pub Date : 2021-11-24DOI: 10.21580/jiafr.2021.3.2.8615
D. Septiani, I. Yahya, S. Hartono, T. Ningsih, Fiina Ishmatul Maula
Purpose - This study aims to determine the effect of intellectual capital and bank risk on the performance of maqashid sharia based Islamic banking in Indonesia (An empirical study on Islamic Commercial Banks registered in Financial Services Authority (OJK) in 2017-2019).Method - This study used secondary data and used the multiple linear regression analysis method. The sample used was the purposive sampling method with the results of 12 Islamic Commercial Bank (BUS) as a sample of 14 BUS populations.Result - The results of this study stated that iB-VACA had a significant adverse effect on MSI variable; iB-VAHU had a positive but not significant effect on MSI variable; iB-STVA had an insignificant negative effect on MSI variable; CAR had an insignificant negative effect on MSI variable, and FDR had a positive but not significant effect on MSI variable.Implication - Islamic banking is advised to optimize its intangible assets and estimate the risks that will occur, as well as to pay attention to its sharia objectives to increase company value and performance.Originality - The secondary data source of this research is obtained from the official website of OJK, and financial report data is obtained from the website of each BUS.
{"title":"Analysis of the influence of intellectual capital and bank risk on the performance of maqashid sharia based Islamic banking in Indonesia","authors":"D. Septiani, I. Yahya, S. Hartono, T. Ningsih, Fiina Ishmatul Maula","doi":"10.21580/jiafr.2021.3.2.8615","DOIUrl":"https://doi.org/10.21580/jiafr.2021.3.2.8615","url":null,"abstract":"Purpose - This study aims to determine the effect of intellectual capital and bank risk on the performance of maqashid sharia based Islamic banking in Indonesia (An empirical study on Islamic Commercial Banks registered in Financial Services Authority (OJK) in 2017-2019).Method - This study used secondary data and used the multiple linear regression analysis method. The sample used was the purposive sampling method with the results of 12 Islamic Commercial Bank (BUS) as a sample of 14 BUS populations.Result - The results of this study stated that iB-VACA had a significant adverse effect on MSI variable; iB-VAHU had a positive but not significant effect on MSI variable; iB-STVA had an insignificant negative effect on MSI variable; CAR had an insignificant negative effect on MSI variable, and FDR had a positive but not significant effect on MSI variable.Implication - Islamic banking is advised to optimize its intangible assets and estimate the risks that will occur, as well as to pay attention to its sharia objectives to increase company value and performance.Originality - The secondary data source of this research is obtained from the official website of OJK, and financial report data is obtained from the website of each BUS.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49340507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose - This study aims to find empirical evidence of the effect of growth of Third-Party Funds (TPF) on profit growth with the role of the Sharia Supervisory Board (SSB) as moderator in Islamic banks in Indonesia.Method - This research is an associative research with a quantitative approach that used Panel Data Regression and Moderated Regression Analysis (MRA) as the data analysis methods. The research sample was 58 annual financial reports from 14 Islamic Commercial Banks in Indonesia.Result - TPF had a significant positive effect on bank profit growth, but the role of the SSB could not moderate the growth of TPF on the profit growth of Islamic banks.Implication - The implications of this research can strengthen the belief that Islamic banks need to improve the quality of their services and products to maintain the trust of customers and prospective customers to place their funds in Islamic banks.Originality - The difference in this study when compared to other studies is the role of the Sharia Supervisory Board which is positioned as a moderating variable for the growth of Third-Party Funds on profit growth.
{"title":"The role of the sharia supervisory board in the relationship of third-party fund and profits","authors":"Fajria Zakiyah, Prayogo Prasojoharto, Sepky Mardian","doi":"10.21580/jiafr.2021.3.2.9554","DOIUrl":"https://doi.org/10.21580/jiafr.2021.3.2.9554","url":null,"abstract":"Purpose - This study aims to find empirical evidence of the effect of growth of Third-Party Funds (TPF) on profit growth with the role of the Sharia Supervisory Board (SSB) as moderator in Islamic banks in Indonesia.Method - This research is an associative research with a quantitative approach that used Panel Data Regression and Moderated Regression Analysis (MRA) as the data analysis methods. The research sample was 58 annual financial reports from 14 Islamic Commercial Banks in Indonesia.Result - TPF had a significant positive effect on bank profit growth, but the role of the SSB could not moderate the growth of TPF on the profit growth of Islamic banks.Implication - The implications of this research can strengthen the belief that Islamic banks need to improve the quality of their services and products to maintain the trust of customers and prospective customers to place their funds in Islamic banks.Originality - The difference in this study when compared to other studies is the role of the Sharia Supervisory Board which is positioned as a moderating variable for the growth of Third-Party Funds on profit growth.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45223231","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-24DOI: 10.21580/jiafr.2021.3.2.8889
Mira Fajrin Sholichatun, Hani Werdi Apriyanti
Purpose - The purpose of this study is to determine the procurement of social assistance program on management accounting practice of MSMEs in food industry sector in Semarang during the Covid-19 pandemic.Method - The population in this study was 17,602 MSMEs in Semarang. The research samples were 144 MSMEs in the food industry sector in Semarang obtained using a non-random sampling technique with a purposive sampling method. The data were then processed using descriptive analysis, data quality test, classic assumption test, simple regression analysis, and hypothesis test with IBM SPSS 25 software.Result - The results show that procurement of social assistance program affected management accounting practice of MSMEs in the food industry sector in Semarang during the Covid-19 pandemic.Implication - The results show that with the support provided by the government and financial institutions in the form of social assistance programs to MSMEs had positive impacts by encouraging MSMEs to implement management accounting practices during the covid-19 pandemic.Originality - Procurement of Social Assistance Program is an independent variable which is later expected to be able to overcome MSME problems due to the financing faced by MSMEs in Semarang in response to the impact of Covid-19 pandemic.
{"title":"The role of social assistance program on management accounting practice","authors":"Mira Fajrin Sholichatun, Hani Werdi Apriyanti","doi":"10.21580/jiafr.2021.3.2.8889","DOIUrl":"https://doi.org/10.21580/jiafr.2021.3.2.8889","url":null,"abstract":"Purpose - The purpose of this study is to determine the procurement of social assistance program on management accounting practice of MSMEs in food industry sector in Semarang during the Covid-19 pandemic.Method - The population in this study was 17,602 MSMEs in Semarang. The research samples were 144 MSMEs in the food industry sector in Semarang obtained using a non-random sampling technique with a purposive sampling method. The data were then processed using descriptive analysis, data quality test, classic assumption test, simple regression analysis, and hypothesis test with IBM SPSS 25 software.Result - The results show that procurement of social assistance program affected management accounting practice of MSMEs in the food industry sector in Semarang during the Covid-19 pandemic.Implication - The results show that with the support provided by the government and financial institutions in the form of social assistance programs to MSMEs had positive impacts by encouraging MSMEs to implement management accounting practices during the covid-19 pandemic.Originality - Procurement of Social Assistance Program is an independent variable which is later expected to be able to overcome MSME problems due to the financing faced by MSMEs in Semarang in response to the impact of Covid-19 pandemic.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45699838","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-24DOI: 10.21580/jiafr.2021.3.2.8671
Nida Ulya Sofana, F. Zakiy, Muchammad Fauzi, Singgih Muheramtohadi, Najim Nur Fauziah
Purpose - This study aims to obtain empirical evidence regarding the effect of Islamic stock selection based on financial ratios (debt to assets ratio, debt to equity ratio, non-halal income ratio) and corporate governance mechanisms (managerial ownership, independent commissioners, institutional ownership, audit committee) on company earnings quality.Method - The population of this research is all companies that are members of the Indonesian Sharia Stock Index in 2017-2019. The sample selection used purposive sampling method and obtained 67 sample companies. This study uses secondary data with multiple linear regression analysis method.Result - Debt to assets ratio, managerial ownership, institutional ownership, and audit committee have no significant positive effect on earnings quality. The ratio of non-halal income has a negative and significant effect on earnings quality. Meanwhile, the debt to equity ratio and independent commissioners do not have a significant negative effect on earnings quality.Implication - Companies that are members of the Indonesian Sharia Stock Index are expected to be able to improve the quality of their financial reports. On the other hand, investors are expected to find out and study the company's annual report as a material consideration for investment decisions.Originality - The originality of the research is this study intends to develop previous research by examining the selection criteria for sharia shares and corporate governance mechanisms.
{"title":"The effect of sharia share selection based on financial ratio and corporate governance mechanism on the quality of company profit","authors":"Nida Ulya Sofana, F. Zakiy, Muchammad Fauzi, Singgih Muheramtohadi, Najim Nur Fauziah","doi":"10.21580/jiafr.2021.3.2.8671","DOIUrl":"https://doi.org/10.21580/jiafr.2021.3.2.8671","url":null,"abstract":"Purpose - This study aims to obtain empirical evidence regarding the effect of Islamic stock selection based on financial ratios (debt to assets ratio, debt to equity ratio, non-halal income ratio) and corporate governance mechanisms (managerial ownership, independent commissioners, institutional ownership, audit committee) on company earnings quality.Method - The population of this research is all companies that are members of the Indonesian Sharia Stock Index in 2017-2019. The sample selection used purposive sampling method and obtained 67 sample companies. This study uses secondary data with multiple linear regression analysis method.Result - Debt to assets ratio, managerial ownership, institutional ownership, and audit committee have no significant positive effect on earnings quality. The ratio of non-halal income has a negative and significant effect on earnings quality. Meanwhile, the debt to equity ratio and independent commissioners do not have a significant negative effect on earnings quality.Implication - Companies that are members of the Indonesian Sharia Stock Index are expected to be able to improve the quality of their financial reports. On the other hand, investors are expected to find out and study the company's annual report as a material consideration for investment decisions.Originality - The originality of the research is this study intends to develop previous research by examining the selection criteria for sharia shares and corporate governance mechanisms.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45837079","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-24DOI: 10.21580/jiafr.2021.3.2.9351
D. Abdulazeez
Purpose - This study examined the effect of Ownership Structure (Management Shareholding and Ownership Concentration) on the loan quality (LDR) of banks in Nigeria for a period of 10 years (2008-2017). The study utilized data extracted from the annual reports of the fourteen (14) studied banks.Method - Robustness tests were carried out to determine: the existence or otherwise of multi-collinearity, fitness of the model and appropriate regression analysis for the study. Descriptive statistics, correlation and Fixed Effect GLS regression were used to describe and analyze the data.Result - The study found that, ownership structure (ownership concentration and management shareholding) has significant negative effect on loan quality of banks in Nigeria.Implication - The implications of this research is that increased ownership concentration as well as management shareholding can strengthen banks’ loan quality owing to reduced proportion of depositors funds used to finance loan. This could spur confidence in the bank by the general public with regards to the safety of their deposits.Originality - This study is different from other studies that concentrated on the use of ownership structure in relations to various financial performance measurements such as ROA, ROE, NPM among other. In this study, effort was made to consider the financial health of banks owing to the nature of their business (loan).
{"title":"Ownership structure and loan quality of deposit money banks in Nigeria","authors":"D. Abdulazeez","doi":"10.21580/jiafr.2021.3.2.9351","DOIUrl":"https://doi.org/10.21580/jiafr.2021.3.2.9351","url":null,"abstract":"Purpose - This study examined the effect of Ownership Structure (Management Shareholding and Ownership Concentration) on the loan quality (LDR) of banks in Nigeria for a period of 10 years (2008-2017). The study utilized data extracted from the annual reports of the fourteen (14) studied banks.Method - Robustness tests were carried out to determine: the existence or otherwise of multi-collinearity, fitness of the model and appropriate regression analysis for the study. Descriptive statistics, correlation and Fixed Effect GLS regression were used to describe and analyze the data.Result - The study found that, ownership structure (ownership concentration and management shareholding) has significant negative effect on loan quality of banks in Nigeria.Implication - The implications of this research is that increased ownership concentration as well as management shareholding can strengthen banks’ loan quality owing to reduced proportion of depositors funds used to finance loan. This could spur confidence in the bank by the general public with regards to the safety of their deposits.Originality - This study is different from other studies that concentrated on the use of ownership structure in relations to various financial performance measurements such as ROA, ROE, NPM among other. In this study, effort was made to consider the financial health of banks owing to the nature of their business (loan).","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44560278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-24DOI: 10.21580/jiafr.2021.3.2.8673
I. Pertiwi, Taufikur Rahman
Purpose - The purpose of the study is to examine the effect of task complexity and experience on audit judgment with religiosity as moderator on the auditors of the Inspectorate of Semarang Regency and Salatiga City.Method - The data collection of this research was primary by using a questionnaire. The population in this study were all auditors of the Inspectorate of Semarang Regency and Salatiga City. The selection of samples in this study used the purposive sampling technique and selected 45 auditors. The data was processed using IBM Statistics SPSS version 23. The data analysis in this study included the research instrument test (validity and reliability test), classical assumption test (normality, heteroscedasticity, and multicollinearity test), F-test, t-test, and MRA test.Result - The results showed that task complexity and experience partially had a positive and significant effect on audit judgment. The MRA test showed that religiosity did not moderate the effect of task complexity and experience on audit judgment in the auditors of the Inspectorate of Semarang Regency and Salatiga City.Implication - It is expected that auditors consider the religiosity in making audit judgment.Originality - This research is the first study that uses religiosity as a moderator in the relationship between task complexity and experience on audit judgment.
目的-本研究的目的是考察任务复杂性和经验对审计判断的影响，以宗教信仰为调节因素，对三宝朗县和萨拉蒂加市监察局的审计员。方法:本研究的数据收集主要采用问卷调查法。这项研究的人口都是三宝垄县和萨拉蒂加市监察局的审计员。本研究的样本选择采用目的性抽样技术，选取了45名审计师。使用IBM Statistics SPSS version 23对数据进行处理。本研究的数据分析包括研究工具检验(效度和信度检验)、经典假设检验(正态性、异方差和多重共线性检验)、f检验、t检验和MRA检验。结果:任务复杂性和经验对审计判断有部分正向显著影响。MRA检验显示，宗教信仰对三宝垄县监察局和萨拉提加市审计员的任务复杂性和经验对审计判断的影响没有调节作用。含义-期望审计师在作出审计判断时考虑宗教虔诚性。原创性——本研究首次将宗教信仰作为任务复杂性与审计判断经验之间关系的调节因素。
{"title":"The role of religiosity on the relationship between task complexity, experience and audit judgement","authors":"I. Pertiwi, Taufikur Rahman","doi":"10.21580/jiafr.2021.3.2.8673","DOIUrl":"https://doi.org/10.21580/jiafr.2021.3.2.8673","url":null,"abstract":"Purpose - The purpose of the study is to examine the effect of task complexity and experience on audit judgment with religiosity as moderator on the auditors of the Inspectorate of Semarang Regency and Salatiga City.Method - The data collection of this research was primary by using a questionnaire. The population in this study were all auditors of the Inspectorate of Semarang Regency and Salatiga City. The selection of samples in this study used the purposive sampling technique and selected 45 auditors. The data was processed using IBM Statistics SPSS version 23. The data analysis in this study included the research instrument test (validity and reliability test), classical assumption test (normality, heteroscedasticity, and multicollinearity test), F-test, t-test, and MRA test.Result - The results showed that task complexity and experience partially had a positive and significant effect on audit judgment. The MRA test showed that religiosity did not moderate the effect of task complexity and experience on audit judgment in the auditors of the Inspectorate of Semarang Regency and Salatiga City.Implication - It is expected that auditors consider the religiosity in making audit judgment.Originality - This research is the first study that uses religiosity as a moderator in the relationship between task complexity and experience on audit judgment.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46742476","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Khuloud M. Alawadhi, Nour Alshamali, Mansour Alshamali
This article examines how the level of financial development has changed in the ten years between 2008 and 2017 in connection to the most significant events in the global economy and finance and how financial development has influenced economic growth in developing countries. The study measures financial development following the World Bank (2020) approach and using indicators of financial access, financial depth, financial efficiency and financial stability, corresponding to financial institutions and financial markets. Based on a two-way fixed effects model, we find that financial development has positively and significantly contributed to economic growth in these countries during the ten years between 2008 and 2017, through increased access of individual consumers and firms to financial products and services. Other variables such as the depth, efficiency and stability of financial institutions and markets do not correlate significantly with the economic growth of developing countries between 2008 and 2017. This paper concludes that the access to financial institutions for individuals living in developing nations is favourably and significantly connected to economic growth in these countries.
{"title":"Financial Development in Developing Countries and Its Impact on Economic Growth between 2008 and 2017","authors":"Khuloud M. Alawadhi, Nour Alshamali, Mansour Alshamali","doi":"10.5430/afr.v10n4p50","DOIUrl":"https://doi.org/10.5430/afr.v10n4p50","url":null,"abstract":"This article examines how the level of financial development has changed in the ten years between 2008 and 2017 in connection to the most significant events in the global economy and finance and how financial development has influenced economic growth in developing countries. The study measures financial development following the World Bank (2020) approach and using indicators of financial access, financial depth, financial efficiency and financial stability, corresponding to financial institutions and financial markets. Based on a two-way fixed effects model, we find that financial development has positively and significantly contributed to economic growth in these countries during the ten years between 2008 and 2017, through increased access of individual consumers and firms to financial products and services. Other variables such as the depth, efficiency and stability of financial institutions and markets do not correlate significantly with the economic growth of developing countries between 2008 and 2017. This paper concludes that the access to financial institutions for individuals living in developing nations is favourably and significantly connected to economic growth in these countries.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":"16 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79115248","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper, we document a novel machine learning-based numerical framework to solve static and dynamic portfolio optimization problems, with, potentially, an extremely large number of assets. The framework proposed applies to general constrained optimization problems and overcomes many major difficulties arising in current literature. We not only empirically test our methods in U.S. and China A-share equity markets, but also run a horse-race comparison of some optimization schemes documented in (Homescu, 2014). We record significant excess returns, relative to the selected benchmarks, in both U.S. and China equity markets using popular schemes solved by our framework, where the conditional expected returns are obtained via machine learning regression, inspired by (Gu, Kelly & Xiu, 2020) and (Leippold, Wang & Zhou, 2021), of future returns on pricing factors carefully chosen.
在本文中，我们记录了一个新的基于机器学习的数值框架，用于解决静态和动态投资组合优化问题，潜在地，具有极大量的资产。提出的框架适用于一般约束优化问题，克服了当前文献中出现的许多主要困难。我们不仅在美国和中国a股股票市场对我们的方法进行了实证检验，而且还对(Homescu, 2014)中记录的一些优化方案进行了赛马比较。我们使用由我们的框架解决的流行方案，在美国和中国股市中记录了相对于所选基准的显著超额回报，其中有条件预期回报是通过机器学习回归获得的，灵感来自(Gu, Kelly & Xiu, 2020)和(Leippold, Wang & Zhou, 2021)，对精心选择的定价因素的未来回报。
{"title":"Asset Allocation via Machine Learning","authors":"Zhenning Hong, Ruyan Tian, Qing Yang, Wei Yao, Tingting Ye, Liangliang Zhang","doi":"10.5430/afr.v10n4p34","DOIUrl":"https://doi.org/10.5430/afr.v10n4p34","url":null,"abstract":"In this paper, we document a novel machine learning-based numerical framework to solve static and dynamic portfolio optimization problems, with, potentially, an extremely large number of assets. The framework proposed applies to general constrained optimization problems and overcomes many major difficulties arising in current literature. We not only empirically test our methods in U.S. and China A-share equity markets, but also run a horse-race comparison of some optimization schemes documented in (Homescu, 2014). We record significant excess returns, relative to the selected benchmarks, in both U.S. and China equity markets using popular schemes solved by our framework, where the conditional expected returns are obtained via machine learning regression, inspired by (Gu, Kelly & Xiu, 2020) and (Leippold, Wang & Zhou, 2021), of future returns on pricing factors carefully chosen.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":"18 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80011645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Cross-border capital flows create dilemmas and trade-offs for monetary policy due to their many benefits, like financing economic growth and consumption of households, and their potential adverse macroeconomic effects, which can be caused by real appreciation of a recipient country’s currency and a large stock of debt that can cause difficulty in servicing. We examine conditions under which a country will restrict capital inflows to mitigate their adverse macroeconomic effects. Our game-theoretic modelling captures a dynamic interaction between policy and investment. Using the subgame perfect Nash equilibrium concept, we show that the government restricts capital inflows if the local economic conditions are strong enough to discourage a surge in capital inflows but relaxes the restriction if the economic conditions in the investors’ home are strong enough to attract capital inflows. The restriction has large impact on short-term capital inflows and is effective in channelling capital inflows into long-term investments.
{"title":"A Managed Policy on Capital Inflows","authors":"Khaled Amira, Mark L. Muzere, Mark Wilson","doi":"10.5430/AFR.V10N4%P","DOIUrl":"https://doi.org/10.5430/AFR.V10N4%P","url":null,"abstract":"Cross-border capital flows create dilemmas and trade-offs for monetary policy due to their many benefits, like financing economic growth and consumption of households, and their potential adverse macroeconomic effects, which can be caused by real appreciation of a recipient country’s currency and a large stock of debt that can cause difficulty in servicing. We examine conditions under which a country will restrict capital inflows to mitigate their adverse macroeconomic effects. Our game-theoretic modelling captures a dynamic interaction between policy and investment. Using the subgame perfect Nash equilibrium concept, we show that the government restricts capital inflows if the local economic conditions are strong enough to discourage a surge in capital inflows but relaxes the restriction if the economic conditions in the investors’ home are strong enough to attract capital inflows. The restriction has large impact on short-term capital inflows and is effective in channelling capital inflows into long-term investments.","PeriodicalId":34570,"journal":{"name":"Journal of Islamic Accounting and Finance Research","volume":"15 3 1","pages":"23"},"PeriodicalIF":0.0,"publicationDate":"2021-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88045524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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