Tamanna Yesmine, Md. Emran Hossain, Md. Akhtaruzzaman Khan, Sandip Mitra, Sourav Mohan Saha and Md. Ruhul Amin
The economic development of Bangladesh is heavily reliant on the banking industry, yet it faces numerous hurdles, including liquidity issues, capital shortages, non-performing…
Abstract
Purpose
The economic development of Bangladesh is heavily reliant on the banking industry, yet it faces numerous hurdles, including liquidity issues, capital shortages, non-performing loans, inefficiencies and so on. Therefore, this study investigated the performance and efficiency of scheduled banks (state-owned, private commercial, foreign commercial and specialized banks) operating in Bangladesh.
Design/methodology/approach
The research was conducted using secondary data from annual reports of banks. The CAMELS rating system and Data Envelopment Analysis (DEA) methods were employed to measure the performance and efficiency of banks, respectively.
Findings
In the overall bank rankings, results revealed that foreign commercial Standard Chartered Bank and state-owned Sonali Bank Limited came in first and last position, respectively. Among the four categories of banks, foreign commercial banks were the best performer, while state-owned banks were the worst. Only two banks, i.e. Citibank NA and HSBC Bank, were scale efficient while the remaining banks were inefficient. In terms of performance and efficiency, state-owned and specialized banks were deemed wanting.
Practical implications
This study proposes recommendations to the policymakers that could lead to more effective tactics for improving the banking industry's performance and efficiency.
Originality/value
As far as the authors are concerned, this study presents empirical evidence on the performance and efficiency of different types of banks and explores comparisons among them, which has never been done to this extent in the country before.
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Md. Bokhtiar Hasan, Md Mamunur Rashid, Md. Naiem Hossain, Mir Mahmudur Rahman and Md. Ruhul Amin
This research explores the spillovers and portfolio implications for green bonds and environmental, social and governance (ESG) assets in the context of the rapidly expanding…
Abstract
Purpose
This research explores the spillovers and portfolio implications for green bonds and environmental, social and governance (ESG) assets in the context of the rapidly expanding trend in green finance investments and the need for a green recovery in the post-COVID-19 era.
Design/methodology/approach
This study utilizes Diebold and Yilmaz’s (2014) spillover method and portfolio strategies (hedge ratio, optimal weights and hedging effectiveness) for the data starting from February 29, 2012, to March 14, 2022.
Findings
The study’s findings reveal that the lower volatility spillover is evidenced between the green bonds and ESG stocks during tranquil and turbulent periods (e.g. COVID-19 and Russia-Ukraine War). Furthermore, hedging costs are lower both in normal times and during economic slumps. Investing the bulk of the funds in green bonds makes it possible to achieve maximum hedging effectiveness between the S&P green bond (GB) and the S&P 500 ESG.
Practical implications
Both investors and policymakers may use these findings to make wise investment and policy choices to achieve post-COVID environmental sustainability.
Originality/value
Unlike previous research, this is the first to explore the interconnectedness among the major global and country-specific green bonds and ESG assets. The major findings of this study about the lower volatility spillovers and hedging costs between green bonds and ESG assets during the tranquil and turbulent periods may contribute to the post-COVID investment portfolio for environmental sustainability.
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Md. Bokhtiar Hasan, Abu N. M. Wahid, Md. Ruhul Amin and Md. Delowar Hossain
The purpose of this study is to examine the impact of ownership structure such as family, government, institutional, foreign and public on dividend payouts as a representative of…
Abstract
Purpose
The purpose of this study is to examine the impact of ownership structure such as family, government, institutional, foreign and public on dividend payouts as a representative of dividend policy of nonfinancial firms in Bangladesh.
Design/methodology/approach
This study employs a dynamic panel data model, namely, differenced generalized method of moments (GMM), which follows a two-step process. The study uses annual data of a sample of 159 nonfinancial firms of Dhaka Stock Exchange for the period 2008–2017, which constitutes a panel data of 1,590 firm-year observations.
Findings
This study’s findings reveal that family and public ownerships have a significant and positive effect on dividend payouts, while government and institutional ownerships have a significant but negative effect. This study additionally incorporates some very important controlled variables and finds that except for size, all the selected controlled variables, i.e. lagged-one of dividend payout, returns on assets, debts to assets, price-earnings (PE) ratio, age and financial crisis have a significant effect on the dividend payouts. However, the findings support several dividend-related theories or hypotheses, i.e. agency cost theory, dividend stability theory and reputation hypothesis.
Research limitations/implications
This study could consider some other aspects of corporate governance, as well as other emerging markets and financial institutions to perceive whether the results differ. Also, investigation could be carried out on conventional and Islamic firms individually to observe if the findings are different. However, the researchers are suggested to incorporate these issues in their future studies.
Practical implications
This study offers an important insight into the relationship dynamics between dividend payouts and ownership structure in the context of an emerging market like Bangladesh. Moreover, it enhances the understanding of the ties of dividend payouts with the firm-specific factors as well as the financial crisis. The findings of the present study have also important implications for managers, policymakers and researchers, who are in quest of directions on the dividend policy of publicly listed nonfinancial firms.
Originality/value
Most of the previous studies consider one or two types of ownership to examine the impacts on dividend payouts, while this study uses five types of ownership accompanied by a different data set. Moreover, to the authors’ knowledge, no study in Bangladesh has yet addressed this issue in such a comprehensive manner as theirs.
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Md Ruhul Amin and Andre Varella Mollick
This paper aims to investigate how the relation between stock returns of US firms and West Texas Intermediate (WTI) oil prices is affected by leverage from 1990 to 2020.
Abstract
Purpose
This paper aims to investigate how the relation between stock returns of US firms and West Texas Intermediate (WTI) oil prices is affected by leverage from 1990 to 2020.
Design/methodology/approach
This paper examines how the relationship between stock returns of US firms and WTI oil prices is affected by leverage from 1990 to 2020 using a fixed-effect model estimation framework.
Findings
Results from the fixed-effect regression models suggest that leverage effects on stock returns are pervasive both in aggregate and cross-industry levels, while the mining industry is more sensitive. In addition to the positive oil price effects attenuated by leverage at the aggregate level, the authors observe stronger marginal effects of leverage only for the mining sector. Being more exposed to commodity prices, the positive effects of oil prices on stock returns in the mining sector are offset by large debt ratios. Asymmetries, effects of debt maturity structure and implications are also discussed.
Research limitations/implications
This study is grounded on the contemporary cash flow claim of leverage NOT on the long-run effect of leverage considering cash flow constraints. The oil price increase is assumed to represent an advancement of the overall economy. This study does not capture the oil prices response to some other economic forces and vice-versa.
Practical implications
Mining companies should therefore reduce the stock of debt with respect to their assets to make possible the “pass-through” from oil prices to the stock market.
Originality/value
Previously undocumented and the authors show that leverage reduces the total effect of oil prices on stock returns, consistent with the hypothesis. Asymmetric and debt maturity structures effects are also discussed.
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Priya Saha, Md. Shakhawat Hossain, Nirmal Chandra Roy, Abdullah Al Masud and Ruhul Amin
This study aims to evaluate students’ intention and actual use (AU) of artificial intelligence (AI) tools’ to discover how the power of AI influences learning and academic success.
Abstract
Purpose
This study aims to evaluate students’ intention and actual use (AU) of artificial intelligence (AI) tools’ to discover how the power of AI influences learning and academic success.
Design/methodology/approach
This paper used the unified theory of acceptance and use of technology (UTAUT) to develop a structural equation model (SEM) and used convenience sampling to measure 304 students’ five-point Likert scale responses. The model was tested with AMOS-24 and SPSS-25, and the study found that AI boosted students’ learning experiences and explain importance of AI skills and knowledge.
Findings
Performance expectancy (PE), effort expectancy (EE), social influence and facilitating condition directly and indirectly affect AU via intent to use (IU), while subjective norms determining the use of AI tools’ and have no substantial influence. Attitude (ATT) moderates PE and EE, although the data show that ATT has no substantial effect on EE.
Originality/value
These insights may help student to understand how AI tools’ benefit them and what factors affect their utilization. When correctly designed and executed, UTAUT provides an appropriate integrated theoretical framework for robust statistical analysis like SEM.
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The aim of this paper is to analyze the status of independence of the judiciary in Bangladesh. It is recognized worldwide that an independent judiciary is the sin qua non of…
Abstract
Purpose
The aim of this paper is to analyze the status of independence of the judiciary in Bangladesh. It is recognized worldwide that an independent judiciary is the sin qua non of democracy and good governance. However, without separation of the judiciary from other organs of the state absolute independence of judiciary is not possible. An attempt has been made in this paper to sketch the brief historical background of judicial system in Bangladesh through analyzing the meaning and basic principles of judicial independence and to what extent these principles exists in Bangladesh. How did the judiciary finally separate from the executive? After separation of the judiciary, what is the status of executive interference over judiciary in Bangladesh has also been evaluated in this paper.
Design/methodology/approach
The study is qualitative in nature and based on secondary sources of materials like books, journal articles, government rules, newspaper reports, etc. Relevant literature has also been collected through Internet browsing.
Findings
In this study, it has been found that from time immemorial the judicial system of Bangladesh was not completely independent from the interference of the executive branch of the government. It has also been found that from the beginning of the British colonial rule, the question of separation of the judiciary from the executive had been a continuing debate. Presently, even after separation of the judiciary, the interference of the executive over the judiciary is still continuing.
Practical implications
This paper opens a new window for the policy makers and concerned authorities to take necessary steps for overcoming the existing limitations of the status of judicial dependence in Bangladesh.
Originality/value
The paper will be of interest to legal practitioners, policy makers, members of civil society, and those in the field of judicial system in Bangladesh and some other British colonial common law countries.