Pub Date : 2022-01-01DOI: 10.5267/j.ac.2021.11.004
S. Suroso
This research aims to find out the significant difference between added value on sustainable competitive advantage and unsustainable competitive advantage of Islamic banks in Indonesia. The population in this study is Islamic banking units in Indonesia, the sampling technique used purposive sampling and the data is used from annual financial reports from 2015 to 2019. The results of this research support the resource-based theory that companies that can maintain their competitive advantage have added value and can also manage their strategic assets in the form of VRIN (Valuable, Rare, Inimitable, non-substitutable) more efficiently. The results also indicate that companies that can maintain competitive advantage are those that can provide added value for the stakeholders. The test results support the RBT hypothesis, as evidenced by the finding that it is possible to use VRIN assets to offer added value for stakeholders.
{"title":"The added value and competitive advantage of Islamic banks in Indonesia","authors":"S. Suroso","doi":"10.5267/j.ac.2021.11.004","DOIUrl":"https://doi.org/10.5267/j.ac.2021.11.004","url":null,"abstract":"This research aims to find out the significant difference between added value on sustainable competitive advantage and unsustainable competitive advantage of Islamic banks in Indonesia. The population in this study is Islamic banking units in Indonesia, the sampling technique used purposive sampling and the data is used from annual financial reports from 2015 to 2019. The results of this research support the resource-based theory that companies that can maintain their competitive advantage have added value and can also manage their strategic assets in the form of VRIN (Valuable, Rare, Inimitable, non-substitutable) more efficiently. The results also indicate that companies that can maintain competitive advantage are those that can provide added value for the stakeholders. The test results support the RBT hypothesis, as evidenced by the finding that it is possible to use VRIN assets to offer added value for stakeholders.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70745465","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 purpose of this study is to describe the Foreign Direct Investment (FDI) determinants of 6 countries, each of which is 3 countries from Southeast Asia and South Asia. Foreign Direct Investment (FDI) shows capital flows in 6 countries (Indonesia, Philippines, Malaysia, India, Pakistan and Bangladesh) that are affected by inflation, wage, Exchange Rate, Market Size and Trade Openness. The research method used is the regression of panel data for the period 2004-2019 from 6 countries in Southeast Asia obtained from the World Bank database. The results showed simultaneously and partially variable wage, exchange rate, market size and trade openness had a significant relationship with FDI inflows, except for variable inflation at α = 10%. Of the several variables studied, the dominant variable affecting the inflow of FDI in a country is the size of the market and followed by the wage level. In addition, of the 6 countries studied by countries that have great potential as recipients of FDI is Philippines.
{"title":"Determinants of foreign direct investment in Southeast and South Asian countries","authors":"Y. Yolanda, S. Sumarni, Muslim Kamil","doi":"10.5267/j.ac.2022.6.001","DOIUrl":"https://doi.org/10.5267/j.ac.2022.6.001","url":null,"abstract":"The purpose of this study is to describe the Foreign Direct Investment (FDI) determinants of 6 countries, each of which is 3 countries from Southeast Asia and South Asia. Foreign Direct Investment (FDI) shows capital flows in 6 countries (Indonesia, Philippines, Malaysia, India, Pakistan and Bangladesh) that are affected by inflation, wage, Exchange Rate, Market Size and Trade Openness. The research method used is the regression of panel data for the period 2004-2019 from 6 countries in Southeast Asia obtained from the World Bank database. The results showed simultaneously and partially variable wage, exchange rate, market size and trade openness had a significant relationship with FDI inflows, except for variable inflation at α = 10%. Of the several variables studied, the dominant variable affecting the inflow of FDI in a country is the size of the market and followed by the wage level. In addition, of the 6 countries studied by countries that have great potential as recipients of FDI is Philippines.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70748217","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 aim of this paper is to examine the possible association between the effectiveness of Board of Directors (BOD) and firm performance (FP). For the purpose of this analysis, data is derived from firms listed in the materials sector of the Saudi Exchange Market’s Tadawul All Share Index (TASI). Using pooled OLS regression analysis and the dependent variables of ROA and ROE as a proxy for FP, while board meetings (BMEET), independence and board size (BSIZE) are used as explanatory variables, the results reveal that frequent BMEET may not lead to improved FP. Moreover, the results show that BMEET frequency is negatively associated with FP. Independent members do not provide additional efficiency leading to better FP. As for the BSIZE, the findings indicate that larger boards are associated with lower FP. Such findings offer insights into the effect of BSIZE on FP. The results are of interest to decision makers, policymakers and investors.
{"title":"Board diligence, independence, size, and firm performance: Evidence from Saudi Arabia","authors":"Sultan Altass","doi":"10.5267/j.ac.2022.1.001","DOIUrl":"https://doi.org/10.5267/j.ac.2022.1.001","url":null,"abstract":"The aim of this paper is to examine the possible association between the effectiveness of Board of Directors (BOD) and firm performance (FP). For the purpose of this analysis, data is derived from firms listed in the materials sector of the Saudi Exchange Market’s Tadawul All Share Index (TASI). Using pooled OLS regression analysis and the dependent variables of ROA and ROE as a proxy for FP, while board meetings (BMEET), independence and board size (BSIZE) are used as explanatory variables, the results reveal that frequent BMEET may not lead to improved FP. Moreover, the results show that BMEET frequency is negatively associated with FP. Independent members do not provide additional efficiency leading to better FP. As for the BSIZE, the findings indicate that larger boards are associated with lower FP. Such findings offer insights into the effect of BSIZE on FP. The results are of interest to decision makers, policymakers and investors.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70748235","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}
Noor Baizura Harun, Habibah Ab. Jalil, M. Zolkepli
Studying the factors in influencing the users’ intentions to adopt Big Data technology in Malaysia is crucial. This study adopted three grand theories which consisted of Dissemination of Innovation (DOI) theory, Technology Acceptance Model (TAM), and Technology-Organization Environment (TOE) framework. The model specifies technological, organizational, and environmental factors as determinants of the users’ intentions to adopt big data technology. This study aims to review the technology, organizational and environmental factors that can determine the intentions towards big data technology adoption. A total of 224 questionnaires were obtained and screened. Data was analyzed using the Partial Least Square Modelling of Structural Equations due to one of the best software for verifying structured data on structural equations modelling (SEM) Smart PLS 3.0 as analytical tools. This study finds that the predictor variables of compatibility, security are significant and critically direct to the users’ intentions to adopt big data technology. The results indicate that the model is suited for studying users’ intentions to adopt Big Data technology in educational organizations. This study can help the Malaysian ministry of education to emphasize the important factors in further developing the use of Big Data technology in organizations. The findings provide important recommendations and implications for BDA technology practitioners and application developers, which could coincide with successful BDA technology deployment. This study provides practitioners with practical recommendations for guidance in incorporating and endorsing BDA activities in their organizations in order to maximize the benefits of revolutionary technology, particularly in government agencies.
{"title":"Technological, organizational and environmental factors influencing on user intention towards big data technology adoption in Malaysian educational organization","authors":"Noor Baizura Harun, Habibah Ab. Jalil, M. Zolkepli","doi":"10.5267/j.ac.2022.6.002","DOIUrl":"https://doi.org/10.5267/j.ac.2022.6.002","url":null,"abstract":"Studying the factors in influencing the users’ intentions to adopt Big Data technology in Malaysia is crucial. This study adopted three grand theories which consisted of Dissemination of Innovation (DOI) theory, Technology Acceptance Model (TAM), and Technology-Organization Environment (TOE) framework. The model specifies technological, organizational, and environmental factors as determinants of the users’ intentions to adopt big data technology. This study aims to review the technology, organizational and environmental factors that can determine the intentions towards big data technology adoption. A total of 224 questionnaires were obtained and screened. Data was analyzed using the Partial Least Square Modelling of Structural Equations due to one of the best software for verifying structured data on structural equations modelling (SEM) Smart PLS 3.0 as analytical tools. This study finds that the predictor variables of compatibility, security are significant and critically direct to the users’ intentions to adopt big data technology. The results indicate that the model is suited for studying users’ intentions to adopt Big Data technology in educational organizations. This study can help the Malaysian ministry of education to emphasize the important factors in further developing the use of Big Data technology in organizations. The findings provide important recommendations and implications for BDA technology practitioners and application developers, which could coincide with successful BDA technology deployment. This study provides practitioners with practical recommendations for guidance in incorporating and endorsing BDA activities in their organizations in order to maximize the benefits of revolutionary technology, particularly in government agencies.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70748254","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}
R. Prabantarikso, Z. Abidin, Edian Fahmy, Mayda Tyastika, Amabel Nabila
This study aims to identify the factors that contribute to the formation of Net interest income (NII) for commercial banks in Indonesia in the short and long-term using the Vector Error Correction Model (VECM). The results showed that in the short term all variables in each period tend to adjust to achieve long-term balance. In the short term, the variables that affect NII are credit and NPL of large and retail trade, construction credit, transportation credit and NPL warehousing and communication, as well as lending rate facility. While in the variable length figures that affect NII are credit variables and NPL large and retail trade, Credit and NPL Transportation, warehousing and communication, other credit and Third-Party Funds (Deposit) collected. The analysis of Impulse Response Function can be proven that NII most quickly achieves stability when dealing with the shocks of large trade and retail NPL. Meanwhile, in the Forecasting Variance Decomposition analysis, it can be concluded that the variable that gives the greatest contribution to NII is the amount of construction credit.
{"title":"Determinant of net interest income of commercial banks in Indonesia","authors":"R. Prabantarikso, Z. Abidin, Edian Fahmy, Mayda Tyastika, Amabel Nabila","doi":"10.5267/j.ac.2022.1.002","DOIUrl":"https://doi.org/10.5267/j.ac.2022.1.002","url":null,"abstract":"This study aims to identify the factors that contribute to the formation of Net interest income (NII) for commercial banks in Indonesia in the short and long-term using the Vector Error Correction Model (VECM). The results showed that in the short term all variables in each period tend to adjust to achieve long-term balance. In the short term, the variables that affect NII are credit and NPL of large and retail trade, construction credit, transportation credit and NPL warehousing and communication, as well as lending rate facility. While in the variable length figures that affect NII are credit variables and NPL large and retail trade, Credit and NPL Transportation, warehousing and communication, other credit and Third-Party Funds (Deposit) collected. The analysis of Impulse Response Function can be proven that NII most quickly achieves stability when dealing with the shocks of large trade and retail NPL. Meanwhile, in the Forecasting Variance Decomposition analysis, it can be concluded that the variable that gives the greatest contribution to NII is the amount of construction credit.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70748305","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 examines whether capital structure determinations by Indonesian publicly listed firms (Tbks) are influenced by the behavioural biases of overconfidence and optimism, with the underlying rationality frameworks being framed by relevant financial information and impacted by decision-makers’ demographic attributes. Data were obtained from survey respondents and statistically analysed using partial least squares structural equation modelling to identify the indicators of causative dynamics within the hypothesised relationships. Sampled Tbks’ management (CEOs/CFOs) displayed the inherent behavioural traits of overconfidence and optimism in their capital structure determinations. However, such behavioural variables were not statistically proven to significantly influence capital structure decision-making and, hence, were not validated as capital structure determinants. The pecking order framework was revealed to have a significant framing effect on capital structure decision-making by sampled managers. Sampled managers’ demographic attributes and backgrounds were found to be capital structure determinants but did not have a mediating or moderating influence on the modelled relationship between behavioural variables and capital structure.
{"title":"Causative dynamics of overconfidence, optimism, framing effects and demographic attributes as capital structure determinants for publicly listed firms in Indonesia","authors":"D. Lim, Hendrawan Supratikno, G. Ugut, E. Hulu","doi":"10.5267/j.ac.2021.7.009","DOIUrl":"https://doi.org/10.5267/j.ac.2021.7.009","url":null,"abstract":"This study examines whether capital structure determinations by Indonesian publicly listed firms (Tbks) are influenced by the behavioural biases of overconfidence and optimism, with the underlying rationality frameworks being framed by relevant financial information and impacted by decision-makers’ demographic attributes. Data were obtained from survey respondents and statistically analysed using partial least squares structural equation modelling to identify the indicators of causative dynamics within the hypothesised relationships. Sampled Tbks’ management (CEOs/CFOs) displayed the inherent behavioural traits of overconfidence and optimism in their capital structure determinations. However, such behavioural variables were not statistically proven to significantly influence capital structure decision-making and, hence, were not validated as capital structure determinants. The pecking order framework was revealed to have a significant framing effect on capital structure decision-making by sampled managers. Sampled managers’ demographic attributes and backgrounds were found to be capital structure determinants but did not have a mediating or moderating influence on the modelled relationship between behavioural variables and capital structure.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70748423","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}
D. T. Huong, Vu Viet Ninh, Nguyen Dinh Hoan, Dinh Quang Toan, N. Van, Dang Thi Lan
The enterprise's system, along with households and the government are the main factors in the production and consumption of the economy, which plays an extremely important role in the development of any country. Besides the large enterprises, which are often considered as the locomotives of the economy’s development, people are increasingly interested in a significant number of small and medium enterprises (SMEs) whose position and role has been confirmed through the actual economic development of many countries and economies. In Vietnam, the development of SMEs has been creating a driving force for economic growth and has become an important strategic direction in the country’s socio-economic development strategy. The article focuses on determining the factors affecting the development of small and medium-sized manufacturing enterprises in Vietnam. At the same time, the current paper evaluates factors affecting the development of these enterprises. The main factors expected to be focused on in the research include the level of production technology, government policies, raw materials, labor, management capacity, corporate social responsibility, green growth orientation, and global epidemics.
{"title":"Factors affecting SMEs’ development in Vietnam","authors":"D. T. Huong, Vu Viet Ninh, Nguyen Dinh Hoan, Dinh Quang Toan, N. Van, Dang Thi Lan","doi":"10.5267/j.ac.2021.7.007","DOIUrl":"https://doi.org/10.5267/j.ac.2021.7.007","url":null,"abstract":"The enterprise's system, along with households and the government are the main factors in the production and consumption of the economy, which plays an extremely important role in the development of any country. Besides the large enterprises, which are often considered as the locomotives of the economy’s development, people are increasingly interested in a significant number of small and medium enterprises (SMEs) whose position and role has been confirmed through the actual economic development of many countries and economies. In Vietnam, the development of SMEs has been creating a driving force for economic growth and has become an important strategic direction in the country’s socio-economic development strategy. The article focuses on determining the factors affecting the development of small and medium-sized manufacturing enterprises in Vietnam. At the same time, the current paper evaluates factors affecting the development of these enterprises. The main factors expected to be focused on in the research include the level of production technology, government policies, raw materials, labor, management capacity, corporate social responsibility, green growth orientation, and global epidemics.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"36 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70747854","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 purpose of this paper is to study the effect of the implementation of GCG principles and PSAK adoption of IFRS on quality of financial reports in SOEs. The data for the study comes from questionnaires collected by the survey method. Smart PLS 3.0 is an analytical technique used in research, with 99 people as the data. The results indicate that the implementation of PSAK adoption of IFRS and GCG principles had a substantial favorable impact on financial report quality.
{"title":"The effect of the implementation of GCG principles and PSAK adoption of IFRS on quality of financial reports in SOEs","authors":"S. Sumiyati, Ratna Mappanyuki","doi":"10.5267/j.ac.2022.3.001","DOIUrl":"https://doi.org/10.5267/j.ac.2022.3.001","url":null,"abstract":"The purpose of this paper is to study the effect of the implementation of GCG principles and PSAK adoption of IFRS on quality of financial reports in SOEs. The data for the study comes from questionnaires collected by the survey method. Smart PLS 3.0 is an analytical technique used in research, with 99 people as the data. The results indicate that the implementation of PSAK adoption of IFRS and GCG principles had a substantial favorable impact on financial report quality.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70748163","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 : 2022-01-01DOI: 10.5267/j.ac.2021.11.003
D. T. Nguyen, Thi Tha Nghiem, T. Tran, D. Nguyen, Thi Le Hang Nguyen
According to the Ministry of Finance's roadmap for applying IFRS in Vietnam, listed enterprises on the stock market and state-owned enterprises holding the dominant power are the first group of enterprises to alter the preparation of financial statements according to Vietnamese Accounting Standards (VAS) to the application of International Financial Reporting Standards (IFRS). The voluntary application period is from 2022 to 2025 and the period after 2025 will be the mandatory one. This study was conducted to determine the factors affecting the transition from preparing financial statements following VAS to IFRS for this group of enterprises. The study involved surveying managers and chief accountants at 120 enterprises belonging to the group of companies listed on the stock market, state-owned enterprises holding the dominant power, with the adoption of a regression analysis method. The research results show that five factors are affecting the transition of financial reporting from VAS to IFRS in this group of enterprises, with the order of influence being ranked from high to low, respectively as (i) Size and operation characteristics of the enterprise; (ii) Competence of accountants; (iii) Viewpoints of the enterprise administrators; (iv) Applied accounting regime, and (v) Enterprise owners. On that basis, the study proposes some recommendations for the transition from preparing financial statements according to VAS to IFRS for enterprises to meet the Ministry of Finance's roadmap for IFRS application.
{"title":"Determining factors affecting the transition of financial statement preparation from VAS to IFRS in enterprises in Vietnam","authors":"D. T. Nguyen, Thi Tha Nghiem, T. Tran, D. Nguyen, Thi Le Hang Nguyen","doi":"10.5267/j.ac.2021.11.003","DOIUrl":"https://doi.org/10.5267/j.ac.2021.11.003","url":null,"abstract":"According to the Ministry of Finance's roadmap for applying IFRS in Vietnam, listed enterprises on the stock market and state-owned enterprises holding the dominant power are the first group of enterprises to alter the preparation of financial statements according to Vietnamese Accounting Standards (VAS) to the application of International Financial Reporting Standards (IFRS). The voluntary application period is from 2022 to 2025 and the period after 2025 will be the mandatory one. This study was conducted to determine the factors affecting the transition from preparing financial statements following VAS to IFRS for this group of enterprises. The study involved surveying managers and chief accountants at 120 enterprises belonging to the group of companies listed on the stock market, state-owned enterprises holding the dominant power, with the adoption of a regression analysis method. The research results show that five factors are affecting the transition of financial reporting from VAS to IFRS in this group of enterprises, with the order of influence being ranked from high to low, respectively as (i) Size and operation characteristics of the enterprise; (ii) Competence of accountants; (iii) Viewpoints of the enterprise administrators; (iv) Applied accounting regime, and (v) Enterprise owners. On that basis, the study proposes some recommendations for the transition from preparing financial statements according to VAS to IFRS for enterprises to meet the Ministry of Finance's roadmap for IFRS application.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70745507","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}
Y. Kullab, Nabil Messabia, Issam Altaweel, Mohammed Shehada
This study aims to examine whether the dividend theories that were principally developed for non-financial companies in developed institutional environments can explain the dividend policies of banks in Palestine, an emerging market with a high level of uncertainty. It also aims to determine the main factors affecting the banks’ propensity to pay dividends and the banks’ dividend payout ratios. The study uses pooled Probit and ordinary least squares regressions to analyze 10 years of data from all listed banks in the Palestine Stock Exchange Market. The results indicate that agency cost, signaling, and regulatory pressure theories are valid for Palestinian banks. In addition, the analysis shows that bank size, profitability, and capital adequacy are the main positive determinants of Palestinian banks’ propensity to pay dividends and of the dividend payout ratios. Furthermore, after winsorizing the data, the results were found to remain consistent. Finally, the results of a general dominance analysis revealed that bank size is the most important determinant, followed by bank profitability and bank capital adequacy, all three of which positively influence dividend policy decisions in Palestinian banks. This study is among the first to investigate dividend policy determinants in the financial sector. Moreover, this study is conducted in Palestine, an emerging economy. Furthermore, unlike prior studies, this study considers banks’ propensity to pay dividends and banks’ dividend payout ratios concurrently when analyzing the dividend determinants in order to make a significant contribution to solving the dividend determinant puzzle.
{"title":"Determinants of dividend policy in Palestinian banks","authors":"Y. Kullab, Nabil Messabia, Issam Altaweel, Mohammed Shehada","doi":"10.5267/j.ac.2021.9.002","DOIUrl":"https://doi.org/10.5267/j.ac.2021.9.002","url":null,"abstract":"This study aims to examine whether the dividend theories that were principally developed for non-financial companies in developed institutional environments can explain the dividend policies of banks in Palestine, an emerging market with a high level of uncertainty. It also aims to determine the main factors affecting the banks’ propensity to pay dividends and the banks’ dividend payout ratios. The study uses pooled Probit and ordinary least squares regressions to analyze 10 years of data from all listed banks in the Palestine Stock Exchange Market. The results indicate that agency cost, signaling, and regulatory pressure theories are valid for Palestinian banks. In addition, the analysis shows that bank size, profitability, and capital adequacy are the main positive determinants of Palestinian banks’ propensity to pay dividends and of the dividend payout ratios. Furthermore, after winsorizing the data, the results were found to remain consistent. Finally, the results of a general dominance analysis revealed that bank size is the most important determinant, followed by bank profitability and bank capital adequacy, all three of which positively influence dividend policy decisions in Palestinian banks. This study is among the first to investigate dividend policy determinants in the financial sector. Moreover, this study is conducted in Palestine, an emerging economy. Furthermore, unlike prior studies, this study considers banks’ propensity to pay dividends and banks’ dividend payout ratios concurrently when analyzing the dividend determinants in order to make a significant contribution to solving the dividend determinant puzzle.","PeriodicalId":7317,"journal":{"name":"Accounting","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70748202","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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