Syed Mehmood Raza Shah, Qiang Fu, Ghulam Abbas and Muhammad Usman Arshad
Wealth Management Products (WMPs) are the largest and most crucial component of China's Shadow banking, which are off the balance sheet and considered as a substitute for…
Abstract
Purpose
Wealth Management Products (WMPs) are the largest and most crucial component of China's Shadow banking, which are off the balance sheet and considered as a substitute for deposits. Commercial banks in China are involved in the issuance of WMPs mainly to; evade the regulatory restrictions, move non-performing loans away from the balance sheet, chase the profits and take advantage of yield spread (the difference between WMPs yield and deposit rate).
Design/methodology/approach
In this study, the authors investigate what bank related characteristics and needs; influenced and prompted the issuance of WMPs. By using a quarterly panel data from 2010 to 2019, this study performed the fixed effects approach favored by the Hausman specification test, and a feasible generalized least square (FGLS) estimation method is employed to deal with any issues of heteroscedasticity and auto-correlation.
Findings
This study found that there is a positive and significant association between the non-performing loan ratio and the issuance of WMPs. Moreover, profitability and spread were found to play an essential role in the issuance of WMPs. The findings of this study suggest that WMPs are issued for multi-purpose, and off the balance sheet status of these products makes them very lucrative for regulated Chinese commercial banks.
Research limitations/implications
Non-guaranteed WMPs are considered as an item of shadow banking in China, as banks do not consolidate this type of WMPs into their balance sheet; due to that reason, there is no individual bank data available for the amount of WMPs. The authors use the number of WMPs issued by banks as a proxy for the bank's exposure to the WMPs business.
Practical implications
From a regulatory perspective, this study helps regulators to understand the risk associated with the issuance of WMPs; by providing empirical evidence that Chinese banks issue WMPs to hide the actual risk of non-performing loans, and this practice could mislead the regulators to evaluate the bank credit risk and loan quality. This study also identifies that Chinese banks issue WMPs for multi-purpose; this can help potential investors to understand the dynamics of WMPs issuance.
Originality/value
This research is innovative in its orientation because it is designed to investigate the less explored wealth management products (WMPs) issued by Chinese banks. This study's content includes not only innovation but also contributes to the existing literature on the shadow banking sector in terms of regulatory arbitrage. Moreover, the inclusion of FGLS estimation models, ten years of quarterly data, and the top 30 Chinese banks (covers 70% of the total Chinese commercial banking system's assets) make this research more comprehensive and significant.
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Syed Mehmood Raza Shah, Yan Lu, Qiang Fu, Muhammad Ishfaq and Ghulam Abbas
Shadow banking has been evolving rapidly in China, with banks actively using wealth management products (WMPs) to evade regulatory restrictions. These products are the largest…
Abstract
Purpose
Shadow banking has been evolving rapidly in China, with banks actively using wealth management products (WMPs) to evade regulatory restrictions. These products are the largest constituent of China's shadow banking sector. A large number of these products are off-balance-sheet and considered a substitute for bank deposits. China's banking sector, especially the small and medium-sized banks (SMBs), uses these products to avoid regulatory restrictions and sustainability risk in the deposit market.
Design/methodology/approach
This study empirically examined how banks in China, specifically SMBs, utilize these products on a short and long-run basis to manage and control their deposit levels. This study utilized a quarterly panel dataset from 2010 to 2019 for the top 30 Chinese banks, by first implementing a Panel ARDL-PMG model. For cross-sectional dependence, this study further executed a cross-sectional augmented autoregressive distributive lag model (CS-ARDL).
Findings
Under regulations avoidance theory, the findings revealed that WMPs and deposits have a stable long-run substitute relationship. Furthermore, the WMP–Deposit substitute relationship was only significant and consistent for SMBs, but not for large four banks. The findings further revealed that the WMP–Deposit substitute relationship existed, even after the removal of the deposit rate limit imposed by the People's Bank of China (PBOC) to control the deposit rates.
Research limitations/implications
The individual bank-issued WMPs' amount data is not available in any database. Therefore, this study utilized the number of WMPs as a proxy for China's banking sector's exposure to the wealth management business.
Practical implications
This research helps policymakers to understand the Deposit–WMP relationship from the off-balance-sheet perspective. During the various stages of interest rate liberalization, banks were given more control to establish their deposit and loan interest rates. However, the deposit rates are still way below the WMP returns, making WMPs more competitive. This research suggests that policymakers should formulate a more balanced strategy regarding deposit rates and WMPs returns.
Originality/value
This study contributes to the existing literature on China's shadow banking by concentrating on the WMPs. This research represents one of the few studies that analyze regulatory arbitrage in terms of the WMP–Deposit relationship. Moreover, the implementation of CS-ARDL panel data models and multiple data sources makes this study's findings more reliable and significant.
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Muhammad Usman Arshad, Fahad Najeeb Khan, Muhammad Ishfaq, Muhammad Nadir Shabbir and Syed Mehmood Raza Shah
This study aims to explore the firm's specific, opacity and economy-specific variables to explain the variation in South Asian market returns and indicate that how the difference…
Abstract
Purpose
This study aims to explore the firm's specific, opacity and economy-specific variables to explain the variation in South Asian market returns and indicate that how the difference in adoption of accounting standards refers to the effect of the movement in stock returns.
Design/methodology/approach
Following the scope of the study, factor analysis, fixed effect, Driscoll and Kraay standard errors (DKSE) and Panel Corrected standard error (PCSE) models have been inducted to determine the influence of firm-specific, opacity and economy-specific variables on stock returns. The sample of study comprises 1,885 firms from five countries located in the South Asia region with the period 2005–2018. To ensure the reliability of data, firm-specific data have been collected from DataStream International, while an international country risk guide was used to compile the data for economy-specific variables.
Findings
This study concluded that firm-specific variables showed a consistent and significant association with stock return except for beta, accrual and momentum while earning aggressiveness was the only factor in opacity measure to capture the variation in stock return. The implementation of international accounting standards seemed to be significant and proves to be helpful to enhance the quality of accounting information.
Research limitations/implications
The limitations of this study comprised the estimation error by avoiding the firm's observations with negative equity in case of earning opacity and majority (more than 50%) of the observation belongs to a single market as India out of final sample which leads to having biasedness in findings.
Practical implications
This study helps the investors to consider the firms with smaller market capitalization and lower book to market ratio and avoid the momentum strategy under firm specific factors. Moreover, earning aggressiveness under opacity domain capture the variation in stock return and must be considered while investing funds.
Originality/value
The influence of adoption of international accounting standards along with firm and economy specific variable in South Asian Equity Markets return was the major contribution. Moreover, the inclusion of DKSE and PCSE models to examine the relevance of the financial and economic informational environment was also considered as a part of major contribution of this study.
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Sehrish Timer and Syed Ali Raza
The purpose of this study is to investigate the nonlinear association between financial inclusion and inclusive economic growth (IEG) in developed economies. A Block of G7…
Abstract
Purpose
The purpose of this study is to investigate the nonlinear association between financial inclusion and inclusive economic growth (IEG) in developed economies. A Block of G7 countries (Germany, Japan, Canada, France, Italy, the UK and the US) are considered in this study.
Design/methodology/approach
For analysis, the authors have employed the “Panel Smooth Transition Regression model.” Annual data consists of the period from 1995 to 2019.
Findings
This research makes a unique contribution to literature with reference to G7 countries, being a pioneering attempt to apply the panel threshold regression model to analyze the relationship between financial inclusion and IEG by applying more rigorous and advanced econometric techniques.
Originality/value
The results indicate that total labor force available in a country, gross fixed capital formation and financial inclusion are positive and significant in lower regimes, but as it moves toward the higher regime, the labor force available in a country becomes less impactful. However, an increase has been observed in financial inclusion in the higher regime. The complete sample generally exhibits a positive yet significant relationship between financial inclusion and inclusive economic development.
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Maryam Ikram, Syed Muhammad Umer Saleem and Waqas Mehmood
This study aims to determine the impact of the United Nations Educational, Scientific and Cultural Organisation (UNESCO) education quality indicators nexus using teaching and…
Abstract
Purpose
This study aims to determine the impact of the United Nations Educational, Scientific and Cultural Organisation (UNESCO) education quality indicators nexus using teaching and learning materials, physical infrastructure and facilities, teaching methods and assessment on students’ satisfaction (SS) in Pakistani higher education institutions (HEIs).
Design/methodology/approach
An investigation was conducted using empirical research involving 440 postgraduate students from 11 private universities in Lahore, Punjab Province, Pakistan. Data were collected through an online questionnaire. Participants were selected using a stratified sampling technique, and the data were analysed using partial least squares structural equation modelling.
Findings
The findings proved the existence of a significant and positive relationship between teaching and learning materials, physical infrastructure and facilities, teaching methods and assessment of SS in Pakistani HEIs.
Originality/value
The novelty of this article lies in the fact that it addresses the gap in the existing literature by exploring the impact of teaching and learning materials, physical infrastructure and facilities, teaching methods, assessment and student satisfaction in the context of private higher education in Pakistan.
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Ali Raza, Umair Khan, Aurang Zaib, Anuar Ishak and Syed Modassir Hussain
This article identifies hybrid nanofluids and industrial thermal engineering devices as significant sources of solar energy. In this study, various nanoparticles suspended in base…
Abstract
Purpose
This article identifies hybrid nanofluids and industrial thermal engineering devices as significant sources of solar energy. In this study, various nanoparticles suspended in base fluids such as water (
Design/methodology/approach
We have utilized the fractal fractional operator definition, the quickest and most advanced fractional approach, to address the problems with the hybrid nanofluid suspension. The integral transform scheme, i.e. the Laplace transform, converts the governing equations into a fractional form before various numerical methods are applied to solve the problem. Further, some numerical schemes to address the Laplace inverse are also utilized.
Findings
The fractional effects on flow rate and heat transfer are evident at varying time intervals. Consequently, we conclude that as the fractal constraints increase, the momentum and heat profiles decelerate. Furthermore, all necessary conditions are satisfied, resulting in the momentum and temperature fields decreasing near the plate and increasing over time. Additionally, the water-based (
Practical implications
The findings could be very useful in enhancing the efficiency of thermal systems. These findings align more accurately with conventional solutions and can be used to build and optimize various heat management strategies.
Originality/value
The primary goals of this research are to examine the thermal and flow properties of hybrid nanofluids for manufacturing purposes of thermal engineering equipment utilizing fractal fractional definition. Further, to improve thermal system productivity by applying sophisticated fractional techniques to better and maximize heat and momentum transmission in these hybrid nanofluid solutions
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Muhammad Bilal Zafar and Mohd Fauzi Abu-Hussin
This study aims to dissect and understand the latent themes of Islamic work ethic (IWE) and explore the driving factors of IWE research.
Abstract
Purpose
This study aims to dissect and understand the latent themes of Islamic work ethic (IWE) and explore the driving factors of IWE research.
Design/methodology/approach
Structural topic modeling (STM), a sophisticated machine learning technique, was used to analyze a corpus of 205 articles sourced from the Scopus database. These articles cover the 36 years of research on IWE, from 1988 to 2024. Moreover, negative binomial regression was applied to examine the driving factors of IWE research.
Findings
The STM analysis unfolds ten topics in conjunction with IWE including individual success, workplace dynamics, organizational work ethics, knowledge management, employee citizenship behavior, financial ethics, job satisfaction, organizational commitment, performance enhancement and leadership. The further STM outputs included word clouds, prevalence proportions, correlation matrix, heatmap, relationship of topics with metadata, topic prominence in the publishing journals and, finally, illustrating trends and future prospects of research on IWE. The results of negative binomial regression reveal that number of authors, article age, journal indexing, authors from multiple countries and number of references are strong drivers of fostering research in IWE, by having significant positive impacts on total citations.
Social implications
The insights from this study provide valuable guidance for businesses and organizations looking to integrate IWE principles into their operations. By promoting values such as fairness, hard work and ethical behavior, organizations can foster a more inclusive and morally grounded workplace culture. This, in turn, may lead to enhanced employee satisfaction, greater organizational commitment and improved overall performance. Additionally, the emphasis on ethical practices can contribute to broader societal benefits, such as increased trust in business practices and a stronger alignment with social responsibility initiatives.
Originality/value
This is a unique study that explores the latent themes and characteristics of the IWE literature through STM and provides insights on the future research directions. In addition, this study also examines the driving factors of IWE research.
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Syed Ali Raza, Komal Akram Khan and Bushra Qamar
The research analyzes the influence of three environmental triggers, i.e. awareness, concern and knowledge on environmental attachment and green motivation that affect tourists'…
Abstract
Purpose
The research analyzes the influence of three environmental triggers, i.e. awareness, concern and knowledge on environmental attachment and green motivation that affect tourists' pro-environmental behavior in the Pakistan’s tourism industry. Furthermore, this study has analyzed the moderating role of moral obligation concerning environmental attachment and green motivation on tourists' pro-environmental behavior.
Design/methodology/approach
Data were gathered via a structured questionnaire by 237 local (domestic) tourists of Pakistan. Furthermore, the data were examined by employing SmartPLS.
Findings
Findings demonstrate that all three environmental triggers have a positive and significant relationship with environmental attachment and green motivation. Accordingly, environmental attachment and green motivation promote tourists' pro-environmental behavior. Furthermore, the moderating role of moral obligations has also been incorporated in the study. The finding reveals a strong and positive relationship among environmental attachment and tourists' pro-environmental behaviors during high moral obligations. In contrast, moral obligations do not moderate association between green motivation and tourists' pro-environmental behavior. Therefore, competent authorities should facilitate tourists to adopt environmentally friendly practices; which will ultimately promote pro-environmental behavior.
Originality/value
This study provides useful insights regarding the role of tourism in fostering environmental attachment and green motivation that sequentially influence tourist pro-environmental behavior. Secondly, this research has employed moral obligations as a moderator to identify the changes in tourists’ pro-environmental behavior based on individuals' ethical considerations. Hence, the study provides an in-depth insight into tourists' behavior. Lastly, the present research offers effective strategies for the tourism sector and other competent authorities to increase green activities that can embed the importance of the environment among individuals.
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Syed Awais Ali Shah, Bingtuan Gao, Ajeet Kumar Bhatia, Chuande Liu and Arshad Rauf
Barge-type offshore floating wind turbine (OFWT) commonly exhibits an under-actuated phenomenon in an offshore environment, which leads to a potential vibration-damping hazard…
Abstract
Purpose
Barge-type offshore floating wind turbine (OFWT) commonly exhibits an under-actuated phenomenon in an offshore environment, which leads to a potential vibration-damping hazard. This article aims to provide a new robust output feedback anti-vibrational control scheme for the novel translational oscillator with rotational actuator (TORA) based five-degrees of freedom (5-DOF) barge-type OFWT in the presence of unwanted disturbances and modeling uncertainties.
Design/methodology/approach
In this paper, an active control technique called TORA has been used to design a 5-DOF barge-type OFWT model, where the mathematical model of the proposed system is derived by using Euler–Lagrange's equations. The robust hierarchical backstepping integral nonsingular terminal sliding mode control (HBINTSMC) with an adaptive gain is used in conjunction with extended order high gain observer (EHGO) to achieve system stabilization in the presence of unwanted disturbances and modeling uncertainties. The numerical simulations based on MATLAB/SIMULINK have been performed to demonstrate the feasibility and effectiveness of the proposed model and control law.
Findings
The numerical simulation results affirm the accuracy and efficiency of the proposed control law for the TORA based OFWT system. The results demonstrate that the proposed control law is robust against unwanted disturbances and uncertainties. The unknown states are accurately estimated by EHGO which enables the controller to exhibit improved stabilization performance.
Originality/value
A new mathematical model of the 5-DOF barge-type OFWT system based on TORA is the major contribution of this research paper. Furthermore, it provides a new adaptive anti-vibration control scheme by incorporating the EHGO for the proposed model.
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Roni Andespa, Mohamad Idham Md Razak, Yasrul Huda and Hulwati Hulwati
This research aims to analyses the structural model of customers’ intention towards reputable and accountable Islamic finance, explained through Meta-Analysis Structural Equation…
Abstract
Purpose
This research aims to analyses the structural model of customers’ intention towards reputable and accountable Islamic finance, explained through Meta-Analysis Structural Equation Modelling (MASEM) with the Theory of Planned Behaviour approach and extended variables.
Design/methodology/approach
This study used MASEM to examine the factors systematically influencing behavioural intentions within Islamic finance. By synthesising 89 existing studies, the study identified key variables and their relationships, providing a comprehensive understanding of the underlying mechanisms. A rigorous methodology involving article selection, data extraction and statistical analysis enabled the development of a robust conceptual framework.
Findings
This study underscores the significant impact of subjective norms and perceived behavioural control on the intention to adopt Islamic finance, mediated by customer attitude. Religiosity, customer awareness and knowledge influence the intention to adopt Islamic finance products, with the Islamic financial institution's reputation and customer attitude serving as mediating variables.
Originality/value
This research novelty examines Islamic finance accounting, reporting and financial accountability, primarily focusing on customers’ perceived intentions towards Islamic financial practices.