Leward Jeke, Clement Zibusiso Moyo and Richard Apau
Although the consequences of illicit financial outflows on the economies of the world continue to exert adverse impacts on many economies of the world, explanations regarding…
Abstract
Purpose
Although the consequences of illicit financial outflows on the economies of the world continue to exert adverse impacts on many economies of the world, explanations regarding specific drivers of the illicit outflows remain divergent in the literature. This study aims to investigate the effect of financial liberalisation on illicit financial outflows in Africa. Furthermore, the study also examines the effect of macroeconomic stability and institutional quality on illicit outflows.
Design/methodology/approach
To achieve the objectives, the study uses a dynamic panel system generalised method of moments technique to analyse annual data from the period 1995 to 2015 of 22 African countries.
Findings
The results show that financial liberalisation helps to reduce illicit capital outflows. Furthermore, improved institutional quality is associated with lower levels of capital outflows, thus affirming the theoretical expectations that stable political environment boost investor confidence. Overall, the study show that financial liberalisation reduces illicit outflows. However, liberalisation without sound macroeconomic stability and institutional quality may avail opportunities for illicit outflows.
Research limitations/implications
The main limitation of the study was lack of data that spans periods beyond 2015 for most of the variables on financial illicit flows. The available data sources could not test the objectives beyond 2015.
Originality/value
Current literature on the relationship between financial liberalisation and illicit fund outflows are generally conducted in the context implications on economic growth. However, beyond economic growth, financial liberalisation may impact on illicit financial outflows. Furthermore, other institutional and macroeconomic dynamics may influence illicit financial outflow, especially for developing economies in Africa.
Details
Keywords
Felix Nti Koranteng, Isaac Wiafe, Ferdinand Apietu Katsriku and Richard Apau
User trust in social networking sites (SNS) has become an important issue in SNS discussions. This is because of its impact on knowledge sharing, social commerce, social…
Abstract
User trust in social networking sites (SNS) has become an important issue in SNS discussions. This is because of its impact on knowledge sharing, social commerce, social interaction, among many others. However, information systems researchers have primarily explored the benefits of trust with little attention to its antecedents. In an attempt to address this knowledge gap, this study proposed a model that investigated the factors that promote trust among SNS users. Data was gathered from voluntary respondents using a questionnaire. A PLS-SEM analysis of 912 valid responses suggested that Norm of Reciprocity, Social Interaction Ties and Identification are significant factors that encourage Trust among SNS users. Shared Language was also identified to have impact on Norm of Reciprocity, Social Interaction Ties and Identification. The results of the study provide significant theoretical and practical contributions. They bridge the knowledge gap regarding the formation of Trust on SNS. The model evaluated explains 49.6% of the variance in Trust and thus suitable for analyzing the antecedents of Trust on SNS. Furthermore, with the significance of Identification, Social Interaction Ties and Norm of Reciprocity on Trust, SNS developers are tasked to offer SNS features that proliferate the formation of these factors as well as shared interpretations.