Hosie G. Tewelde, Hewan Kiflemariam, Natnael Aregawi, Surafiel Ghirmay
Research on Eritrean banking system is scant. Hence, this study’s aim is two-fold. To add literature to this scarce body of knowledge and to initiate the CAMEL model in the Eritrean context. The main purpose of this paper is to evaluate the performance of the Commercial Bank of Eritrea (CBER) using CAMEL approach. Data are gathered from consolidated financial statements of CBER. The analysis extends for 15 years starting from 2001 up to 2015 by employing two variables from each CAMEL parameter. Based on the selected CAMEL metrics the empirical analysis depicted a satisfactory result but with significant volatilities. Except for Capital Adequacy which is probably tied to its ownership structure Asset Quality, Management Efficiency, Earnings and Liquidity portrayed reasonable outcomes, nonetheless with frequent head and shoulder trends. These sheds light on the strengths and vulnerabilities of the bank, underlining the need to bolster the concerns of the decision makers to improve and increase its soundness.
{"title":"Financial Analysis of Eritrean Commercial Bank: CAMEL Model","authors":"Hosie G. Tewelde, Hewan Kiflemariam, Natnael Aregawi, Surafiel Ghirmay","doi":"10.5296/ifb.v10i1.21005","DOIUrl":"https://doi.org/10.5296/ifb.v10i1.21005","url":null,"abstract":"Research on Eritrean banking system is scant. Hence, this study’s aim is two-fold. To add literature to this scarce body of knowledge and to initiate the CAMEL model in the Eritrean context. The main purpose of this paper is to evaluate the performance of the Commercial Bank of Eritrea (CBER) using CAMEL approach. Data are gathered from consolidated financial statements of CBER. The analysis extends for 15 years starting from 2001 up to 2015 by employing two variables from each CAMEL parameter. Based on the selected CAMEL metrics the empirical analysis depicted a satisfactory result but with significant volatilities. Except for Capital Adequacy which is probably tied to its ownership structure Asset Quality, Management Efficiency, Earnings and Liquidity portrayed reasonable outcomes, nonetheless with frequent head and shoulder trends. These sheds light on the strengths and vulnerabilities of the bank, underlining the need to bolster the concerns of the decision makers to improve and increase its soundness.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"100 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73616840","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 : 2023-06-25DOI: 10.32890/ijbf2023.18.2.2
Shafa Aqilah, M. Fathoni
This study was aimed at determining the factors that could influence a person’s decision to use mobile banking. In this study, perceived usefulness, perceived ease of use, and perceived credibility were considered exogenous variables, and social factors as mediators. This research used quantitative methods. The population in this study were Indonesian Sharia Bank customers who used BSI mobile banking services in the Jakarta, Bogor, Depok, Tangerang and Bekasi areas. A sample of 200 people was obtained using the purposive sampling method. The analysis technique used was the inner model, outer model, and hypothesis testing using SmartPLS 3.2.9. The results obtained in this study showed that perceived usefulness had a significant effect on decisions to use mobile banking, perceived ease of use had no significant effect, and perceived credibility had a significant effect. In addition, this study has also shown that social factors did not succeed in mediating other variables in the decision to use mobile banking.
{"title":"FACTORS DETERMINING THE USE OF MOBILE BANKING IN INDONESIA","authors":"Shafa Aqilah, M. Fathoni","doi":"10.32890/ijbf2023.18.2.2","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.2.2","url":null,"abstract":"This study was aimed at determining the factors that could influence a person’s decision to use mobile banking. In this study, perceived usefulness, perceived ease of use, and perceived credibility were considered exogenous variables, and social factors as mediators. This research used quantitative methods. The population in this study were Indonesian Sharia Bank customers who used BSI mobile banking services in the Jakarta, Bogor, Depok, Tangerang and Bekasi areas. A sample of 200 people was obtained using the purposive sampling method. The analysis technique used was the inner model, outer model, and hypothesis testing using SmartPLS 3.2.9. The results obtained in this study showed that perceived usefulness had a significant effect on decisions to use mobile banking, perceived ease of use had no significant effect, and perceived credibility had a significant effect. In addition, this study has also shown that social factors did not succeed in mediating other variables in the decision to use mobile banking.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42115045","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 : 2023-06-25DOI: 10.32890/ijbf2023.18.2.3
Fazelina Sahul Hamid, Siti Haslina Md Harizan
Analyses done using the survey response of 451 credit cardholders in the northern region of West Malaysia have shown that credit cardholder repayment pattern differed based on their demographic profile. Specifically, the study found that credit cardholders who were younger and earned a lower income tended to make poorer repayment decisions. In contrast, those with higher academic qualifications tended to make better repayment decisions. Further analyses also revealed that behavioral biases were better at predicting those who made full payment of the outstanding balance and those who paid more than the minimum amount, but failed to predict those who only paid the minimum amount or less. In addition, it was found that overspending emerged as the strongest predictor which discriminated among the three repayment groups, followed by risk aversion, myopia and impulsiveness.
{"title":"BEHAVIORAL BIASES AND CREDIT CARD REPAYMENTS AMONG MALAYSIANS","authors":"Fazelina Sahul Hamid, Siti Haslina Md Harizan","doi":"10.32890/ijbf2023.18.2.3","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.2.3","url":null,"abstract":"Analyses done using the survey response of 451 credit cardholders in the northern region of West Malaysia have shown that credit cardholder repayment pattern differed based on their demographic profile. Specifically, the study found that credit cardholders who were younger and earned a lower income tended to make poorer repayment decisions. In contrast, those with higher academic qualifications tended to make better repayment decisions. Further analyses also revealed that behavioral biases were better at predicting those who made full payment of the outstanding balance and those who paid more than the minimum amount, but failed to predict those who only paid the minimum amount or less. In addition, it was found that overspending emerged as the strongest predictor which discriminated among the three repayment groups, followed by risk aversion, myopia and impulsiveness.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48169281","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 : 2023-06-25DOI: 10.32890/ijbf2023.18.2.4
Samuel Tabot Enow
The long-term behaviour of stock markets are of significant importance to asset managers and financial experts due to its direct link with security price valuation. Volatility persistence has a significant impact on the returns of security prices due to its time varying properties. However, there is no real meaningful effect of current volatility on future security prices and returns if the volatility is transitory and not persistent. The aim of this study was to explore conditional volatility properties and determine whether the current volatile environment would persist in the JSE, S&P 500, Nasdaq Index, SSE, CAC 40 and DAX markets. Using a GARCH 1.1 model and a Markov switching model, the findings revealed that volatility would persist in the JSE, S&P 500, Nasdaq Index, SSE, CAC 40, and the DAX from their ARCH and GARCH coefficients, as well as the delay parameters. In addition, the effects of past volatility in the Nasdaq, CAC 40, and DAX would remain in the forecast of variance. A diversified and broader investment approach should be used in the JSE, S&P 500, Nasdaq Index, SSE, CAC 40, and DAX indexes to mitigate risk, and portfolio formation should not concentrate on any sector or asset classes.
{"title":"VOLATILITY PERSISTENCE IN INTERNATIONAL FINANCIAL MARKETS IN THE POST COVID-19 ERA","authors":"Samuel Tabot Enow","doi":"10.32890/ijbf2023.18.2.4","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.2.4","url":null,"abstract":"The long-term behaviour of stock markets are of significant importance to asset managers and financial experts due to its direct link with security price valuation. Volatility persistence has a significant impact on the returns of security prices due to its time varying properties. However, there is no real meaningful effect of current volatility on future security prices and returns if the volatility is transitory and not persistent. The aim of this study was to explore conditional volatility properties and determine whether the current volatile environment would persist in the JSE, S&P 500, Nasdaq Index, SSE, CAC 40 and DAX markets. Using a GARCH 1.1 model and a Markov switching model, the findings revealed that volatility would persist in the JSE, S&P 500, Nasdaq Index, SSE, CAC 40, and the DAX from their ARCH and GARCH coefficients, as well as the delay parameters. In addition, the effects of past volatility in the Nasdaq, CAC 40, and DAX would remain in the forecast of variance. A diversified and broader investment approach should be used in the JSE, S&P 500, Nasdaq Index, SSE, CAC 40, and DAX indexes to mitigate risk, and portfolio formation should not concentrate on any sector or asset classes.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43805804","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 : 2023-06-25DOI: 10.32890/ijbf2023.18.2.1
C. Charoenwong, K. Ding, Jing Pan
The study reported here examines insider trading and the issue of undervaluation as a motive behind corporate spinoffs. The results show an unmistakable increase (decrease) in the number of insider purchases (sales) and net purchases (sales) in the four quarters prior to a spinoff announcement. In addition, relative to a benchmark period, insider selling is significantly lower, and their net purchases significantly higher, in the three quarters prior to a spinoff announcement, as compared to other periods. Furthermore, announcement period excess returns for abnormal net insider purchases are significantly higher than excess returns for abnormal net insider sales. However, only firms with abnormal net insider purchases exhibit significant improvement in their long-run market and operating performance after a spinoff. The results seem to suggest that undervaluation is an important motive behind corporate spinoffs and that it is possible to identify the quality of a spinoff firm based on insider trading behavior prior to its announcement.
{"title":"INSIDER TRADING AND CORPORATE SPINOFFS","authors":"C. Charoenwong, K. Ding, Jing Pan","doi":"10.32890/ijbf2023.18.2.1","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.2.1","url":null,"abstract":"The study reported here examines insider trading and the issue of undervaluation as a motive behind corporate spinoffs. The results show an unmistakable increase (decrease) in the number of insider purchases (sales) and net purchases (sales) in the four quarters prior to a spinoff announcement. In addition, relative to a benchmark period, insider selling is significantly lower, and their net purchases significantly higher, in the three quarters prior to a spinoff announcement, as compared to other periods. Furthermore, announcement period excess returns for abnormal net insider purchases are significantly higher than excess returns for abnormal net insider sales. However, only firms with abnormal net insider purchases exhibit significant improvement in their long-run market and operating performance after a spinoff. The results seem to suggest that undervaluation is an important motive behind corporate spinoffs and that it is possible to identify the quality of a spinoff firm based on insider trading behavior prior to its announcement.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47628705","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 : 2023-06-25DOI: 10.32890/ijbf2023.18.2.5
Wee‐Yeap Lau, Muhammad Irfan Abdul Rahman
The Retirement Fund Incorporated (KWAP) manages the civil servant pension fund. It is a statutory body governed by the Ministry of Finance to manage Malaysia’s civil employees’ pension scheme. In order to examine the fund’s long-term sustainability, this study simulates 560 scenarios to examine the required rate of return needed to fund this defined benefit pension based on four parameters, namely contribution rate, years of service, retirement age and life expectancy. Our results show: First, the minimum years of service for pension eligibility should be increased to 20 years. Second, a contribution rate of at least 13 percent per worker to KWAP is needed. Third, there are no significant changes in the required rate of return even though the retirement age is extended from 55 to 60. Fourth, this study shows that the contribution period is more crucial than the post-retirement period for the sustainability of the pension fund. As a policy suggestion, there is a need for the authority to set a minimum funding ratio for the KWAP pension fund to ensure its long-term sustainability.
{"title":"IS THE KWAP DEFINED BENEFIT PENSION FUND SUSTAINABLE IN THE LONG RUN?","authors":"Wee‐Yeap Lau, Muhammad Irfan Abdul Rahman","doi":"10.32890/ijbf2023.18.2.5","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.2.5","url":null,"abstract":"The Retirement Fund Incorporated (KWAP) manages the civil servant pension fund. It is a statutory body governed by the Ministry of Finance to manage Malaysia’s civil employees’ pension scheme. In order to examine the fund’s long-term sustainability, this study simulates 560 scenarios to examine the required rate of return needed to fund this defined benefit pension based on four parameters, namely contribution rate, years of service, retirement age and life expectancy. Our results show: First, the minimum years of service for pension eligibility should be increased to 20 years. Second, a contribution rate of at least 13 percent per worker to KWAP is needed. Third, there are no significant changes in the required rate of return even though the retirement age is extended from 55 to 60. Fourth, this study shows that the contribution period is more crucial than the post-retirement period for the sustainability of the pension fund. As a policy suggestion, there is a need for the authority to set a minimum funding ratio for the KWAP pension fund to ensure its long-term sustainability.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49567549","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 : 2023-01-05DOI: 10.32890/ijbf2023.18.1.5
I. Shittu, Hannafi Abdulkadir
In recent years, banks in Nigeria have experienced a significant increase in delinquent loan portfolios, which has contributed immensely to the financial difficulties in this sector. Due to the trust of depositors, banks should be responsible for the efficient utilization of resources to achieve cost efficiency, which in turn contributes to raising income. This paper seeks to investigate the moderating role of the cost per loan asset ratio (CLAR) on the relationship between credit risk and return on asset (ROA) of Nigerian deposit money banks (DMBs). This study employs panel data analysis followed by the use of GLS regression models to examine the relationship in question. The population consists of all fifteen (15) listed DMBs in the Nigerian stock market as at December 31st, 2018, while the adjusted population was eleven (11). The results revealed a significant positive moderating relationship between the non-performing loan ratio (NPLR) and capital adequacy ratio (CAR), while the loan loss provision ratio (LLPR) and asset quality ratio (AQR) were negative, but statistically significant. Moreover, the cost per loan asset ratio was found to have an inverse moderating effect on the relationship between the loan and advance ratio (LADR) and the bank’s probability, even though it was not statistically significant. Based on the research findings, the study recommends that policymakers focus on capital regulation as measured by the capital adequacy ratio, risk level, liquidity, and operational cost efficiency. In addition, banks should have effective and efficient strategies to manage credit risks, which might help to enhance their performance.
{"title":"THE MODERATING EFFECT OF COST PER LOAN ASSET RATIO ON THE RELATIONSHIP BETWEEN CREDIT RISK AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA","authors":"I. Shittu, Hannafi Abdulkadir","doi":"10.32890/ijbf2023.18.1.5","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.1.5","url":null,"abstract":"In recent years, banks in Nigeria have experienced a significant increase in delinquent loan portfolios, which has contributed immensely to the financial difficulties in this sector. Due to the trust of depositors, banks should be responsible for the efficient utilization of resources to achieve cost efficiency, which in turn contributes to raising income. This paper seeks to investigate the moderating role of the cost per loan asset ratio (CLAR) on the relationship between credit risk and return on asset (ROA) of Nigerian deposit money banks (DMBs). This study employs panel data analysis followed by the use of GLS regression models to examine the relationship in question. The population consists of all fifteen (15) listed DMBs in the Nigerian stock market as at December 31st, 2018, while the adjusted population was eleven (11). The results revealed a significant positive moderating relationship between the non-performing loan ratio (NPLR) and capital adequacy ratio (CAR), while the loan loss provision ratio (LLPR) and asset quality ratio (AQR) were negative, but statistically significant. Moreover, the cost per loan asset ratio was found to have an inverse moderating effect on the relationship between the loan and advance ratio (LADR) and the bank’s probability, even though it was not statistically significant. Based on the research findings, the study recommends that policymakers focus on capital regulation as measured by the capital adequacy ratio, risk level, liquidity, and operational cost efficiency. In addition, banks should have effective and efficient strategies to manage credit risks, which might help to enhance their performance.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45124346","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 : 2023-01-05DOI: 10.32890/ijbf2023.18.1.1
Muhammad M. Ma’aji, Rob Shrubsall, Ediri O. Anderson
SME competitiveness, financial stability, and and its continuity as a going concern are important considerations for companystakeholders. This research is utilizing logistic regression to examine the determinants of SME business success or failure in Cambodia. A total of 314 successful and 78 failing SMEs were examined. Information was gathered through a survey questionnaire that had been previously validated in various countries based on the financial and non-financial information of SMEs. The study found that four factors, namely the owner’s education level, owner’s marketing skills, customer complaints, and the age of the business were important in determining the success or failure of SMEs. The predictive accuracy of the model was 95.5 percent, with an R-square estimation of 64 percent. Policymakers can use the results of this study to prepare and train aspirant entrepreneurs and current SME proprietors to keep proper records and maintain financial control, and develop marketing and other skills to assist their businesses to succeed. The findings can provide insights for entrepreneurs, especially with respect to efficient resource allocations that may help avert or lessen the rate of failure among SMEs. The findings can also help strengthen the SME sector in Cambodia, by providing more employment opportunities, assisting in better income distribution, and eventually leading to long-term prosperity and competitiveness.
{"title":"DETERMINANTS OF SME SUCCESS OR FAILURE IN FRONTIER MARKETS","authors":"Muhammad M. Ma’aji, Rob Shrubsall, Ediri O. Anderson","doi":"10.32890/ijbf2023.18.1.1","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.1.1","url":null,"abstract":"SME competitiveness, financial stability, and and its continuity as a going concern are important considerations for companystakeholders. This research is utilizing logistic regression to examine the determinants of SME business success or failure in Cambodia. A total of 314 successful and 78 failing SMEs were examined. Information was gathered through a survey questionnaire that had been previously validated in various countries based on the financial and non-financial information of SMEs. The study found that four factors, namely the owner’s education level, owner’s marketing skills, customer complaints, and the age of the business were important in determining the success or failure of SMEs. The predictive accuracy of the model was 95.5 percent, with an R-square estimation of 64 percent. Policymakers can use the results of this study to prepare and train aspirant entrepreneurs and current SME proprietors to keep proper records and maintain financial control, and develop marketing and other skills to assist their businesses to succeed. The findings can provide insights for entrepreneurs, especially with respect to efficient resource allocations that may help avert or lessen the rate of failure among SMEs. The findings can also help strengthen the SME sector in Cambodia, by providing more employment opportunities, assisting in better income distribution, and eventually leading to long-term prosperity and competitiveness.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43631611","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 : 2023-01-05DOI: 10.32890/ijbf2023.18.1.2
El Msiyah Cherif, Jaouad Madkour
This paper studies the topological properties of the dynamics of the industry indices network at the Moroccan stock exchange by usingnetwork theory. The Minimum Spanning Tree (MST) was constructed from the metric distances which had been calculated for the different pairs of industrial indices. The dynamics of the MST were analysed over the period 2013 to 2020 using the sliding window technique. The period studied was divided into the pre-pandemic Covid-19 period and the pandemic Covid-19 period. Connectivity and centrality indicators were calculated to track the connectivity structure over time and to identify the positioning and the importance of the industry indices studied. The result of this study indicates that the network of industry indices was relatively stable during the pre-pandemic Covid-19 period before observing a sudden rapprochement between industries when the Covid-19 pandemic was officially announced. The formation of star-shaped networks was also observed. These networks were centred on the banking industry, essentially during the pandemic Covid-19 period. The banking industry was also positioned at the centre of the Moroccan industry indices network.
{"title":"DYNAMICS OF THE MOROCCAN INDUSTRY INDICES NETWORK BEFORE AND DURING THE COVID-19 PANDEMIC","authors":"El Msiyah Cherif, Jaouad Madkour","doi":"10.32890/ijbf2023.18.1.2","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.1.2","url":null,"abstract":"This paper studies the topological properties of the dynamics of the industry indices network at the Moroccan stock exchange by usingnetwork theory. The Minimum Spanning Tree (MST) was constructed from the metric distances which had been calculated for the different pairs of industrial indices. The dynamics of the MST were analysed over the period 2013 to 2020 using the sliding window technique. The period studied was divided into the pre-pandemic Covid-19 period and the pandemic Covid-19 period. Connectivity and centrality indicators were calculated to track the connectivity structure over time and to identify the positioning and the importance of the industry indices studied. The result of this study indicates that the network of industry indices was relatively stable during the pre-pandemic Covid-19 period before observing a sudden rapprochement between industries when the Covid-19 pandemic was officially announced. The formation of star-shaped networks was also observed. These networks were centred on the banking industry, essentially during the pandemic Covid-19 period. The banking industry was also positioned at the centre of the Moroccan industry indices network. ","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47344157","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 investigates the effect of accounting conservatism on the corporate tax avoidance of listed non-financial firms in Nigeria. This study computes corporate tax avoidance based on the cash effective tax rate (CETR), GAAP effective tax rate (GETR) and book taxdifference (BTD). Accounting conservatism was measured using negative accruals. The study employed an ex-post factor researchdesign utilizing unbalanced panel data. The study covered 48 listed non-financial firms during the period between 2014 and 2020. Three regression models were developed and utilized in the study. The study has revealed that accounting conservatism has a negative and significant effect on both the GETR and BTD. It is recommended that the Financial Reporting Council of Nigeria should encourage promulgation of standards which improve conservatism in financial reporting, as it has been empirically proven to reduce tax avoidance practices by non-financial firms in Nigeria.
{"title":"ACCOUNTING CONSERVATISM AND CORPORATE TAX AVOIDANCE","authors":"Hamid Njiddah Sa’ad, Zaid Abubakar, Suleiman Salami","doi":"10.32890/ijbf2023.18.1.3","DOIUrl":"https://doi.org/10.32890/ijbf2023.18.1.3","url":null,"abstract":"This study investigates the effect of accounting conservatism on the corporate tax avoidance of listed non-financial firms in Nigeria. This study computes corporate tax avoidance based on the cash effective tax rate (CETR), GAAP effective tax rate (GETR) and book taxdifference (BTD). Accounting conservatism was measured using negative accruals. The study employed an ex-post factor researchdesign utilizing unbalanced panel data. The study covered 48 listed non-financial firms during the period between 2014 and 2020. Three regression models were developed and utilized in the study. The study has revealed that accounting conservatism has a negative and significant effect on both the GETR and BTD. It is recommended that the Financial Reporting Council of Nigeria should encourage promulgation of standards which improve conservatism in financial reporting, as it has been empirically proven to reduce tax avoidance practices by non-financial firms in Nigeria.","PeriodicalId":34380,"journal":{"name":"International Journal of Banking and Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44858690","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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