Since 2016, China has incorporated the development of digital inclusive finance (DIF) into its national strategic plan and supported it with favorable policies. These policy changes not only promote the sustainable development of finance but also provide an opportunity to examine the relationship between DIF and traditional finance. This study utilizes panel data from China's prefecture-level cities spanning 2011 to 2019 and employs the generalized difference-in-difference method to analyze the impacts of relevant policies. The findings indicate a positive correlation between the level of traditional finance and the successful implementation of policies that promote DIF, suggesting a complementary relationship between traditional finance and DIF. Additionally, analysis reveals that in regions with more favorable financial and technological conditions, traditional finance plays a prominent supportive role in facilitating DIF. Therefore, policies promoting DIF should consider local financial and technological landscapes while developing tailored strategies based on the maturity level of traditional finance.
{"title":"Exploring the Relationship between Digital Inclusive Finance and Traditional Finance in China","authors":"Min Jiang, Wei Zhou","doi":"10.5539/ibr.v17n3p13","DOIUrl":"https://doi.org/10.5539/ibr.v17n3p13","url":null,"abstract":"Since 2016, China has incorporated the development of digital inclusive finance (DIF) into its national strategic plan and supported it with favorable policies. These policy changes not only promote the sustainable development of finance but also provide an opportunity to examine the relationship between DIF and traditional finance. This study utilizes panel data from China's prefecture-level cities spanning 2011 to 2019 and employs the generalized difference-in-difference method to analyze the impacts of relevant policies. The findings indicate a positive correlation between the level of traditional finance and the successful implementation of policies that promote DIF, suggesting a complementary relationship between traditional finance and DIF. Additionally, analysis reveals that in regions with more favorable financial and technological conditions, traditional finance plays a prominent supportive role in facilitating DIF. Therefore, policies promoting DIF should consider local financial and technological landscapes while developing tailored strategies based on the maturity level of traditional finance.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"10 6","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141005170","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}
Michele Borgia, Adalberto Rangone, Mario Georgiev Georgiev, Maura La Torre
The present study investigated whether responents’ socio-demographic characteristics influenced their personal views on the adoption and implementation of enterprise risk management. An online questionnaire was administered to employees of Italian artisan firms to collect data on the adoption and implementation of enterprise risk management, its determinants, and its relationship with organisational performance. Respondents’ responses were compared to their demographic characteristics to determine whether gender, age, education, position, and role may have influenced their opinions on enterprise risk management. The presence of a well-established risk culture in an organisation and the support of senior management were considered essential in the effective implementation of enterprise risk management in an organization and in positively influencing organisational performance. Select participant’s demographic characteristics had an influence on their views on the implementation of enterprise risk management. The results of this study add to the body of knowledge on enterprise risk management and can support risk managers to effectively and efficiently implement enterprise risk management.
{"title":"The Relationship between Respondents’ Characteristics and Their Perceptions of Enterprise Risk Management. Results of a Survey","authors":"Michele Borgia, Adalberto Rangone, Mario Georgiev Georgiev, Maura La Torre","doi":"10.5539/ibr.v17n3p1","DOIUrl":"https://doi.org/10.5539/ibr.v17n3p1","url":null,"abstract":"The present study investigated whether responents’ socio-demographic characteristics influenced their personal views on the adoption and implementation of enterprise risk management. An online questionnaire was administered to employees of Italian artisan firms to collect data on the adoption and implementation of enterprise risk management, its determinants, and its relationship with organisational performance. Respondents’ responses were compared to their demographic characteristics to determine whether gender, age, education, position, and role may have influenced their opinions on enterprise risk management. The presence of a well-established risk culture in an organisation and the support of senior management were considered essential in the effective implementation of enterprise risk management in an organization and in positively influencing organisational performance. Select participant’s demographic characteristics had an influence on their views on the implementation of enterprise risk management. The results of this study add to the body of knowledge on enterprise risk management and can support risk managers to effectively and efficiently implement enterprise risk management.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"135 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141001997","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}
The objective of this research is to study the internal and external factors that explain the efficient performance of companies listed on the BRVM using a merged two-dimensional approach. Efficient performance refers to the combination of high "financial performance and stock market performance". The results of the binomial logistic regression on a panel of companies over the periods 2011 to 2020 show that only internal factors, namely the company's flexibility in terms of financial communication, its ability to increase its intrinsic performance, its debt policy and its size, have a significant effect on the efficient performance of these companies. These results could not only serve as a frame of reference for investors to make optimal decisions (maximising both return on equity and capital gains on share sales), but also influence the management style of companies seeking to improve their attractiveness and reputation on the financial markets.
{"title":"A Merged Two-Dimensional Approach to Evaluating the Efficient Performance of Non-Financial Companies Listed on the Regional Securities Exchange SA (BRVM)","authors":"Amon Aniké Deh, Kéba Aly Goudiaby","doi":"10.5539/ibr.v17n2p1","DOIUrl":"https://doi.org/10.5539/ibr.v17n2p1","url":null,"abstract":"The objective of this research is to study the internal and external factors that explain the efficient performance of companies listed on the BRVM using a merged two-dimensional approach. Efficient performance refers to the combination of high \"financial performance and stock market performance\". The results of the binomial logistic regression on a panel of companies over the periods 2011 to 2020 show that only internal factors, namely the company's flexibility in terms of financial communication, its ability to increase its intrinsic performance, its debt policy and its size, have a significant effect on the efficient performance of these companies. These results could not only serve as a frame of reference for investors to make optimal decisions (maximising both return on equity and capital gains on share sales), but also influence the management style of companies seeking to improve their attractiveness and reputation on the financial markets.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"9 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140438573","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}
Investor feelings can affect their investing behavior in the market which may impact the stocks prices and volatility. Investor’s happiness represents a very important feeling that can affect investing behavior. The main question here is whether the launching of a country wide happiness program can affect the investors’ behavior in the stock market and consequently the prices and volatility of stocks. The methodology followed to answer this question was a quantitative methodology using data from the stock market of United Arab Emirates for the years 2015 – 2017 and information about the country’s “national program for happiness and wellbeing” that was started in 2016. Data were analyzed using paired t-test and descriptive statistics. Results revealed that happiness can affect the volatility of stock prices but not the returns of stocks in the market.
{"title":"Investors’ Happiness and Stock Market","authors":"M. K. Elshqirat","doi":"10.5539/ibr.v17n2p23","DOIUrl":"https://doi.org/10.5539/ibr.v17n2p23","url":null,"abstract":"Investor feelings can affect their investing behavior in the market which may impact the stocks prices and volatility. Investor’s happiness represents a very important feeling that can affect investing behavior. The main question here is whether the launching of a country wide happiness program can affect the investors’ behavior in the stock market and consequently the prices and volatility of stocks. The methodology followed to answer this question was a quantitative methodology using data from the stock market of United Arab Emirates for the years 2015 – 2017 and information about the country’s “national program for happiness and wellbeing” that was started in 2016. Data were analyzed using paired t-test and descriptive statistics. Results revealed that happiness can affect the volatility of stock prices but not the returns of stocks in the market.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140440110","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}
Understanding the determinants of company productivity and annual employee productivity growth is essential, especially for companies in sub-Saharan Africa. The existing literature has not differentiated the effects of skilled labor (permanent and temporary) in production from all skilled workers in the firm, which will have differential effects on annual labor productivity growth. Current literature also needs to empirically document the top management experience contributing to labor productivity growth. This paper explores the multifaceted aspects of labor productivity growth, focusing on the portion of skilled workers, years of the top manager's working experience in the firm's industry, a portion of permanent workers, and capital equipment, utilizing the micro-level data from the Enterprises Survey database (2006-2018). The findings identified the top manager's experience in the industry and permanent workers as the most significant yearly labor productivity growth contributors, followed by the firm's capital equipment. In contrast, the combination of skilled workers (temporary and permanent) in production has an insignificant relationship with annual labor productivity growth, implying that permanent workers' and top managers' experience matters in a firm's productivity growth.
{"title":"Firm’s Annual Labor Productivity Growth Determinants: Sub-Sahara Africa","authors":"Abdisalan Salad Warsame, Muse Bashir Dahir","doi":"10.5539/ibr.v17n2p15","DOIUrl":"https://doi.org/10.5539/ibr.v17n2p15","url":null,"abstract":"Understanding the determinants of company productivity and annual employee productivity growth is essential, especially for companies in sub-Saharan Africa. The existing literature has not differentiated the effects of skilled labor (permanent and temporary) in production from all skilled workers in the firm, which will have differential effects on annual labor productivity growth. Current literature also needs to empirically document the top management experience contributing to labor productivity growth. This paper explores the multifaceted aspects of labor productivity growth, focusing on the portion of skilled workers, years of the top manager's working experience in the firm's industry, a portion of permanent workers, and capital equipment, utilizing the micro-level data from the Enterprises Survey database (2006-2018). \u0000 \u0000The findings identified the top manager's experience in the industry and permanent workers as the most significant yearly labor productivity growth contributors, followed by the firm's capital equipment. In contrast, the combination of skilled workers (temporary and permanent) in production has an insignificant relationship with annual labor productivity growth, implying that permanent workers' and top managers' experience matters in a firm's productivity growth.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"38 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140440331","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}
This study analyzes banking profitability by examining the impact of bank risk taking and institutional quality on the performance of banks operating in the MENA region between 1999 and 2021. Using the generalized method of moments (GMM) panel data estimator, we identify that banking performance is influenced by specific-bank variables, country-level macroeconomic variables, and the quality of institutions. Our findings demonstrate that an increase in the capital requirement ratio and banks' size has a positive impact on the Return on Assets ratio (ROA), while the Non-Performing Loans to Gross Loans ratio (NPL) and Liquidity (LIQ) have a negative effect on banking performance. It is evident that banks under study expand their interest rates in line with economic growth and high inflation rates, negatively influencing banking performance. Additionally, we find that control of corruption and political stability leads to an increase in banking profitability, whereas the rule of law negatively affects banking profitability.
{"title":"The Impact of Risk Taking and Institutional Quality on MENA Region Banking Performance","authors":"Elie M. El Hokayem","doi":"10.5539/ibr.v17n1p32","DOIUrl":"https://doi.org/10.5539/ibr.v17n1p32","url":null,"abstract":"This study analyzes banking profitability by examining the impact of bank risk taking and institutional quality on the performance of banks operating in the MENA region between 1999 and 2021. Using the generalized method of moments (GMM) panel data estimator, we identify that banking performance is influenced by specific-bank variables, country-level macroeconomic variables, and the quality of institutions. Our findings demonstrate that an increase in the capital requirement ratio and banks' size has a positive impact on the Return on Assets ratio (ROA), while the Non-Performing Loans to Gross Loans ratio (NPL) and Liquidity (LIQ) have a negative effect on banking performance. It is evident that banks under study expand their interest rates in line with economic growth and high inflation rates, negatively influencing banking performance. Additionally, we find that control of corruption and political stability leads to an increase in banking profitability, whereas the rule of law negatively affects banking profitability.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"87 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140487879","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}
Assoumou Menye Oscar, P. Satia, Takeudo Djofang Laurette
This research paper looks into the impact which financial innovations have on the financial performance of banks in Cameroon, specifically commercial banks. The research study used various proxies for financial innovations such as; automated teller machines (ATM), point of sale (POS), internet banking (IB) and mobile banking (MB). In order to gauge the financial performance of commercial banks in Cameroon, the study employed return on assets. The relationship between the variables in the study is established by way of multiple regressions. Using SPSS statistical software to make the analysis; the study found ATMs and MOB to have a positive significant relation to the financial performance of commercial banks while POS terminals and Internet banking both had p-values greater than the study confidence interval. Finally the study recommends banks to issue more POS terminals and sensitize customers on using internet banking services.
本研究论文探讨了金融创新对喀麦隆银行（尤其是商业银行）财务业绩的影响。研究使用了各种金融创新的代用指标，如自动取款机（ATM）、销售点（POS）、网上银行（IB）和手机银行（MB）。为了衡量喀麦隆商业银行的财务业绩，研究采用了资产回报率。研究中各变量之间的关系是通过多元回归法确定的。通过使用 SPSS 统计软件进行分析，研究发现自动取款机和移动银行与商业银行的财务业绩有积极的显著关系，而 POS 终端和网上银行的 P 值均大于研究的置信区间。最后，研究建议银行发放更多的 POS 终端，并向客户宣传使用网上银行服务。
{"title":"The Influence of Financial Innovations on the Financial Performance of Commercial Banks in Cameroon","authors":"Assoumou Menye Oscar, P. Satia, Takeudo Djofang Laurette","doi":"10.5539/ibr.v17n1p64","DOIUrl":"https://doi.org/10.5539/ibr.v17n1p64","url":null,"abstract":"This research paper looks into the impact which financial innovations have on the financial performance of banks in Cameroon, specifically commercial banks. The research study used various proxies for financial innovations such as; automated teller machines (ATM), point of sale (POS), internet banking (IB) and mobile banking (MB). In order to gauge the financial performance of commercial banks in Cameroon, the study employed return on assets. The relationship between the variables in the study is established by way of multiple regressions. Using SPSS statistical software to make the analysis; the study found ATMs and MOB to have a positive significant relation to the financial performance of commercial banks while POS terminals and Internet banking both had p-values greater than the study confidence interval. Finally the study recommends banks to issue more POS terminals and sensitize customers on using internet banking services. ","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"51 48","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140487250","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}
Taiwo O. Soetan, O. S. Umukoro, Adedoyin R. Hassan
Adopting approaches of Transformative Service Research (TSR), the study explored rural and urban perspectives of Financial Inclusion, an enabler of the attainment of the 2030 Sustainable Development Goals, in an emerging economy. A cross-sectional survey was conducted in one of the largest cities in Africa with specific emphasis on an urban and a rural population. The urban sample was obtained from a major urban setting in the city while the rural sample was obtained from the outskirts of the city. Non-probability sampling methods were used to derive the study sample, which included a combination of purposive and convenient sampling. The study sample was made up of 453 participants with 46.8% of them being rural residents and 53.2% being urban residents. A structured questionnaire was utilized in eliciting relevant information from the study participants. Outcomes as depicted by an empirical framework showed that residential status had a significant main effect on access to financial inclusion services, such that rural residents had limited access to financial inclusion services; while perceived cost of financial inclusion had a significant main effect on usage of financial inclusion services, such that perceptions of high cost of perceived inclusion resulted in less usage of financial inclusion services. Based on the study outcomes, financial institutions may consider rural-urban differentials in ascribing service charges for financial inclusion services to encourage usage.
{"title":"Toward the Attainment of Sustainable Development Goals: The Impact of Transformative Service Research on Financial Inclusion","authors":"Taiwo O. Soetan, O. S. Umukoro, Adedoyin R. Hassan","doi":"10.5539/ibr.v17n1p47","DOIUrl":"https://doi.org/10.5539/ibr.v17n1p47","url":null,"abstract":"Adopting approaches of Transformative Service Research (TSR), the study explored rural and urban perspectives of Financial Inclusion, an enabler of the attainment of the 2030 Sustainable Development Goals, in an emerging economy. A cross-sectional survey was conducted in one of the largest cities in Africa with specific emphasis on an urban and a rural population. The urban sample was obtained from a major urban setting in the city while the rural sample was obtained from the outskirts of the city. Non-probability sampling methods were used to derive the study sample, which included a combination of purposive and convenient sampling. The study sample was made up of 453 participants with 46.8% of them being rural residents and 53.2% being urban residents. A structured questionnaire was utilized in eliciting relevant information from the study participants. Outcomes as depicted by an empirical framework showed that residential status had a significant main effect on access to financial inclusion services, such that rural residents had limited access to financial inclusion services; while perceived cost of financial inclusion had a significant main effect on usage of financial inclusion services, such that perceptions of high cost of perceived inclusion resulted in less usage of financial inclusion services. Based on the study outcomes, financial institutions may consider rural-urban differentials in ascribing service charges for financial inclusion services to encourage usage.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"33 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140487741","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}
Youths are more likely to achieve financial independence and prevent intergenerational poverty with adequate knowledge about finance management. Adequate financial literacy is pertinent to enhance financial knowledge, behaviours, and overall well-being in managing finance from a young. This study aims to assess the financial knowledge, attitude, and practice among 150 high school urban students aged 13 to 17 years. The participants (N=150) completed an online survey questionnaire. The financial knowledge was assessed with 20 knowledge-based questions and 15 attitude and practice-based questions respectively using the Likert scale. Data was analysed using the chi-square test and median value. Results show a significant association between financial knowledge and financial literacy. The higher secondary students had higher scores in the three variables due to the exposure to financial literacy subjects, parental support, and peer influence in financial practices. Financial literacy was also associated with the age of the study population. The study shows that there is a need to implement a formalised curriculum to increase financial literacy among secondary students to have a more robust and positive implication on the students’ financial practices for the future. The study is significant in creating awareness and empowering the students with the necessary financial literacy skills.
{"title":"Investigating Financial Literacy Knowledge, Attitude, and Practice of Malaysian Secondary School Students","authors":"Davamalar Arivalagan, Pavithran Ilangko","doi":"10.5539/ibr.v17n1p19","DOIUrl":"https://doi.org/10.5539/ibr.v17n1p19","url":null,"abstract":"Youths are more likely to achieve financial independence and prevent intergenerational poverty with adequate knowledge about finance management. Adequate financial literacy is pertinent to enhance financial knowledge, behaviours, and overall well-being in managing finance from a young. This study aims to assess the financial knowledge, attitude, and practice among 150 high school urban students aged 13 to 17 years. The participants (N=150) completed an online survey questionnaire. The financial knowledge was assessed with 20 knowledge-based questions and 15 attitude and practice-based questions respectively using the Likert scale. Data was analysed using the chi-square test and median value. Results show a significant association between financial knowledge and financial literacy. The higher secondary students had higher scores in the three variables due to the exposure to financial literacy subjects, parental support, and peer influence in financial practices. Financial literacy was also associated with the age of the study population. The study shows that there is a need to implement a formalised curriculum to increase financial literacy among secondary students to have a more robust and positive implication on the students’ financial practices for the future. The study is significant in creating awareness and empowering the students with the necessary financial literacy skills.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"112 24","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139616207","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}
This study aims to analyze the applicability of the supply-side credit crunch in the MENA region by investigating the influence of bank capitalization and the institutional environment on the lending activities of banks operating in the region from 1999 to 2020. Employing the generalized method of moments (GMM) panel data estimator, our analysis reveals that bank lending is shaped by specific bank-related variables, country-level macroeconomic variables, and the quality of institutions. Our findings underscore that increases in bank capitalization levels, competition levels, or banks' liquidity ratios exert a negative impact on credit availability. Conversely, the size and profitability of banks have a positive effect on the accessibility of loans. It is evident that the banks under consideration consistently expand their credit supply in tandem with economic expansion and low inflation rates, thereby positively influencing credit demand. Furthermore, our study indicates that robust anti-corruption measures, political stability, and adherence to the rule of law act as catalysts, encouraging banks to enhance their lending availability.
{"title":"Financial Stability in the MENA Region: The Impact of Banking Capitalization and Institutional Environment on Credit Availability","authors":"Ibrahim Khalil Allouche, Nancy Hijazi","doi":"10.5539/ibr.v17n1p1","DOIUrl":"https://doi.org/10.5539/ibr.v17n1p1","url":null,"abstract":"This study aims to analyze the applicability of the supply-side credit crunch in the MENA region by investigating the influence of bank capitalization and the institutional environment on the lending activities of banks operating in the region from 1999 to 2020. Employing the generalized method of moments (GMM) panel data estimator, our analysis reveals that bank lending is shaped by specific bank-related variables, country-level macroeconomic variables, and the quality of institutions. Our findings underscore that increases in bank capitalization levels, competition levels, or banks' liquidity ratios exert a negative impact on credit availability. Conversely, the size and profitability of banks have a positive effect on the accessibility of loans. It is evident that the banks under consideration consistently expand their credit supply in tandem with economic expansion and low inflation rates, thereby positively influencing credit demand. Furthermore, our study indicates that robust anti-corruption measures, political stability, and adherence to the rule of law act as catalysts, encouraging banks to enhance their lending availability.","PeriodicalId":514902,"journal":{"name":"International Business Research","volume":"113 22","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139616205","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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