Syed Moudud-Ul-Huq, Tanmay Biswas, Md. Abdul Halim, Miroslav Mateev, Imran Yousaf and Mohammad Zoynul Abedin
This study aims to show the relationship between competition, financial stability and ownership structure of banks in the Middle East and North African (MENA) countries.
Abstract
Purpose
This study aims to show the relationship between competition, financial stability and ownership structure of banks in the Middle East and North African (MENA) countries.
Design/methodology/approach
This study uses the generalized method of moments (GMM) estimators to generate research results. This study uses an unbalanced panel dynamic data set. It covers the period 2011 to 2017 in MENA banks.
Findings
This study implies that there is a significant and positive relationship between market power and the financial stability of banks in MENA countries. It explains a competitive market focus on credit risk, which turns them risky. From the bank’s ownership view, Islamic banks are in a less risky position which means Islamic banks are more stable than other ownership structures. On the other hand, government specialized institute displays their poor financial stability and risky from other ownership structures. Unfortunately, there is no significant impact of ownership structure on competition unless Islamic banks prove that they (Islamic banks) perform better in market power.
Practical implications
The empirical findings of this study suggest that MENA banks should improve the process of managing and monitoring the non-performing loan (loan segment business). It reduces the level of credit risk, which leads to achieving more profit. It also recommends that loan quality should improve immediately in this region for declining financial disruption. Based on the ownership structure, policymakers and stakeholders should adjust their risk and financial stability. Notably, the stakeholders can focus on Islamic banks in this region as this type of ownership structure showing superiority over other ownership structures.
Originality/value
This study is based on the latest data set and produced outcomes by using a GMM estimator. It also uses multiple measures of competition and risk variables to get robust results. Moreover, to the best of the knowledge, this study is the pioneer to examine the competition, risk (financial stability) and ownership structure of banks in the MENA countries.
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Syed Moudud-Ul-Huq, Kawsar Ahmed, Mohammad Ashraful Ferdous Chowdhury, Hafiz M. Sohail, Tanmay Biswas and Faisal Abbas
This study aims to investigate the relationship between capital regulation and risk-taking behavior (financial stability) concerning the impacts of the recent global (COVID-19…
Abstract
Purpose
This study aims to investigate the relationship between capital regulation and risk-taking behavior (financial stability) concerning the impacts of the recent global (COVID-19) crisis and diverse ownership structure.
Design/methodology/approach
The analysis uses an unbalanced panel data set from 32 commercial banks of Bangladesh for 2000–2020. The authors use the two-step system generalized method of moments and three-stage least squares to produce the study outcomes.
Findings
The robust results reveal that the relationship between capital regulation and risk (financial stability) is negative (positive) and bi-directional. More significantly, COVID-19 makes banks fragile and demands more capital to absorb risk. However, the effect of COVID-19 is heterogeneous when the authors consider ownership structure. Among the diverse ownership styles, Islamic and active shareholding show their controlling wheel on capital regulation and risk-taking aptitude (financial stability) during the global (COVID-19) crisis. In normal economic conditions, private banks and minority active shareholding can be a good determinant for capital regulation and risk (financial stability). On the other hand, state-owned and large banks have been found as less capitalized and highly risky.
Originality/value
This study is the pioneer in exploring capital regulation and risk toward the recent global (COVID-19) crisis.
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Syed Moudud-Ul-Huq, Md. Asaduzzaman and Tanmay Biswas
The purpose of this study is to underpin the impact of cloud computing in global accounting information systems (AIS). Moreover, it investigates the key aspects that ought to be…
Abstract
Purpose
The purpose of this study is to underpin the impact of cloud computing in global accounting information systems (AIS). Moreover, it investigates the key aspects that ought to be considered by the organization before choosing to pick the correct accounting system.
Design/methodology/approach
The study looks at and depends on narrative investigation of previous studies. In the examination talked about the principle issues with respect to the utilization of cloud and database the executives in the AIS through developing research model.
Findings
The focal point of the paper is the impact of cloud computing worldview on the business area. This paper highlights different facts of cloud accounting, published research papers and the benefits and possible risks determined by the implementation of cloud services, mostly in relation to the accounting department.
Originality/value
Considering the numerous ramifications of cloud advancements on the present business process, there is a need for an examination of how these innovations will be used in AIS to improve precision, benefits and risks. At the same time, there is need to investigate the determinant elements of actualizing cloud advances in the AIS. More importantly, to the author’s knowledge, this is the first study that focuses on the number of published research works to show the importance of cloud computing in accounting and information systems.
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Syed Moudud-Ul-Huq, Tanmay Biswas and Shukla Proshad Dola
This study aims to empirically investigate the effect of managerial ownership on bank value concerning conventional and Islamic bank. The analysis uses a balanced panel data set…
Abstract
Purpose
This study aims to empirically investigate the effect of managerial ownership on bank value concerning conventional and Islamic bank. The analysis uses a balanced panel data set based on a sample consisting of 480 bank-year observations between 2003 and 2017.
Design/methodology/approach
Ordinary least squares, fixed effect and random effect have been used primarily to examine the relationship between managerial ownership and banks' value. Later, the authors validate the core results by using the generalized linear model.
Findings
This study provides general support for the claim of interest alignment that encourages bank standards with a high level of managerial ownership and partly opposes the view of the entrenchment effects.In addition, the study finds a U-shaped and insignificant relation between managerial ownership and bank value. This indicates that initially, managerial ownership is a blessing, and later, it becomes a curse in considering bank value. Moreover, bank value affects managerial ownership positively both for conventional and Islamic banks.
Originality/value
A good number of studies are available in the current literature, which examine the impact of managerial ownership on either bank performance or risk-taking. However, very few studies are found that examine the bidirectional relationship between managerial ownership and banks' value. Moreover, to the best of authors’ knowledge, there is a dearth of literature on this topic that is built on the comparative analysis between conventional and Islamic banks.
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The purpose of this paper is to address various works on mixed convection and proposes 10 unified models (Models 1–10) based on various thermal and kinematic conditions of the…
Abstract
Purpose
The purpose of this paper is to address various works on mixed convection and proposes 10 unified models (Models 1–10) based on various thermal and kinematic conditions of the boundary walls, thermal conditions and/ or kinematics of objects embedded in the cavities and kinematics of external flow field through the ventilation ports. Experimental works on mixed convection have also been addressed.
Design/methodology/approach
This review is based on 10 unified models on mixed convection within cavities. Models 1–5 involve mixed convection based on the movement of single or double walls subjected to various temperature boundary conditions. Model 6 elucidates mixed convection due to the movement of single or double walls of cavities containing discrete heaters at the stationary wall(s). Model 7A focuses mixed convection based on the movement of wall(s) for cavities containing stationary solid obstacles (hot or cold or adiabatic) whereas Model 7B elucidates mixed convection based on the rotation of solid cylinders (hot or conductive or adiabatic) within the cavities enclosed by stationary or moving wall(s). Model 8 is based on mixed convection due to the flow of air through ventilation ports of cavities (with or without adiabatic baffles) subjected to hot and adiabatic walls. Models 9 and 10 elucidate mixed convection due to flow of air through ventilation ports of cavities involving discrete heaters and/or solid obstacles (conductive or hot) at various locations within cavities.
Findings
Mixed convection plays an important role for various processes based on convection pattern and heat transfer rate. An important dimensionless number, Richardson number (Ri) identifies various convection regimes (forced, mixed and natural convection). Generalized models also depict the role of “aiding” and “opposing” flow and combination of both on mixed convection processes. Aiding flow (interaction of buoyancy and inertial forces in the same direction) may result in the augmentation of the heat transfer rate whereas opposing flow (interaction of buoyancy and inertial forces in the opposite directions) may result in decrease of the heat transfer rate. Works involving fluid media, porous media and nanofluids (with magnetohydrodynamics) have been highlighted. Various numerical and experimental works on mixed convection have been elucidated. Flow and thermal maps associated with the heat transfer rate for a few representative cases of unified models [Models 1–10] have been elucidated involving specific dimensionless numbers.
Originality/value
This review paper will provide guidelines for optimal design/operation involving mixed convection processing applications.
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Tanmay Sharma, Joseph S. Chen, William D. Ramos and Amit Sharma
Green hospitality studies have not adequately focused on the diffusion of eco-innovative hotels amongst visitors. This study aims to fill this gap by identifying green hotel…
Abstract
Purpose
Green hospitality studies have not adequately focused on the diffusion of eco-innovative hotels amongst visitors. This study aims to fill this gap by identifying green hotel attributes that influence visitors’ adoption of eco-friendly hotel and their intentions to partake in green initiatives.
Design/methodology/approach
The paper uses a mixed-method approach to explore the drivers of customers’ green hotel adoption and consumption. In the qualitative phase, data were collected via 20 open-ended interviews and analyzed to derive a measurement scale. The scale was then tested through a survey comprising 500 respondents using structural equation modelling.
Findings
The study results elucidate how guests’ visit intentions and green consumption behavior is built through their perception of newness and uniqueness of eco-innovative attributes. Findings shed light on how green hotel’s sustainable communication and corporate social responsibility outreach efforts positively influence guest visit intentions.
Research limitations/implications
Study results reveal perceived eco-innovativeness as an important antecedent of visit intentions. Based on guest’s preferences, green hotels striving to increase its visitors’ base could begin by expanding their eco-innovative attributes.
Originality/value
Contrasting previous studies that have exclusively used the theory of planned behavior constructs, this study argues that diffusion of innovation constructs also offer valuable insights into guests’ visit intentions. While existing studies have covered limited number of eco-innovative attributes, this study adds to the literature by presenting a comprehensive set of attributes including trustworthiness of communication and observability of its social impacts.
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Madhuchhanda Bhattacharya and Tanmay Basak
A few earlier studies presented infeasible heatline trajectories for natural convection within annular domains involving an inner circular cylinder and outer square/circular…
Abstract
Purpose
A few earlier studies presented infeasible heatline trajectories for natural convection within annular domains involving an inner circular cylinder and outer square/circular enclosure. The purpose of this paper is to revisit and illustrate the correct heatline trajectories for various test cases.
Design/methodology/approach
Galerkin finite element based methodology and space adaptive grid have been used to simulate natural convective flows within the annular domains. The prediction of heatlines involves derivatives at the nodes, which are evaluated based on finite element basis functions and contributions from neighboring elements.
Findings
The heatlines in the earlier work indicate infeasible heat flow paths such as heat flow from one portion to the other of isothermal hot walls and heat flow across the adiabatic walls. Current results illustrate physically consistent heat flow paths involving perpendicularly emerging heatlines from hot to cold walls for conductive transport, long heat flow paths around the closed-loop heatline cells for convective transport and parallel layout of heatlines to the adiabatic walls. Results also demonstrate complex heatlines involving multiple flow vortices and complex flow structures.
Originality/value
Current work translates heatfunctions from energy flux vectors, which are determined by using basis sets. This work demonstrates the expected heatline trajectories for various scenarios involving conductive and convective heat transport within enclosures with an inner hot object as a first attempt, and the results are precursors for the understanding of energy flow estimates.
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This paper aims to investigate the role of shapes of containers (nine different containers) on entropy generation minimization involving identical cross-sectional area (1 sq…
Abstract
Purpose
This paper aims to investigate the role of shapes of containers (nine different containers) on entropy generation minimization involving identical cross-sectional area (1 sq. unit) in the presence of identical heating (isothermal). The nine containers are categorized into three classes based on their geometric similarities (Class 1: square, tilted square and parallelogram; Class 2: trapezoidal type 1, trapezoidal type 2 and triangular; Class 3: convex, concave and curved triangular).
Design/methodology/approach
Galerkin finite element method is used to solve the governing equations for a representative fluid (engine oil: Pr = 155) at Ra = 103–105. In addition, finite element method is used to solve the streamfunction equation and evaluate the entropy generation terms (Sψ and Sθ). Average Nusselt number (
Findings
Based on larger
Practical implications
Comparison of entropy generation, intensity of thermal mixing (
Originality/value
This study depicts that entropy generation associated with the convection process can be reduced via altering the shapes of containers to improve the thermal performance or efficiency for processing of identical mass with identical heat input. The comparative study of nine containers elucidates that the values of local maxima of Sψ (Sψ,max), Sθ (Sθ,max) and magnitude of Stotal vary with change in shapes of the containers (Classes 1–3) at fixed Pr and Ra. Such a comparative study based on entropy generation minimization on optimal heating during convection of fluid is yet to appear in the literature. The outcome of this study depicts that containers with curved walls are instrumental to optimize entropy generation with reasonable thermal processing rates.
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Miroslav Mateev, Syed Moudud-Ul-Huq and Ahmad Sahyouni
This paper aims to investigate the impact of regulation and market competition on the risk-taking Behaviour of financial institutions in the Middle East and North Africa (MENA…
Abstract
Purpose
This paper aims to investigate the impact of regulation and market competition on the risk-taking Behaviour of financial institutions in the Middle East and North Africa (MENA) region.
Design/methodology/approach
The empirical framework is based on panel fixed effects/random effects specification. For robustness purpose, this study also uses the generalized method of moments estimation technique. This study tests the hypothesis that regulatory capital requirements have a significant effect on financial stability of Islamic and conventional banks (CBs) in the MENA region. This study also investigates the moderating effect of market power and concentration on the relationship between capital regulation and bank risk.
Findings
The estimation results support the view that capital adequacy ratio (CAR) has no significant impact on credit risk of Islamic banks (IBs), whereas market competition does play a significant role in shaping the risk behavior of these institutions. This study report opposite results for CBs – an increase in the minimum capital requirements is followed by an increase in a bank’s risk level, which has a negative impact on their financial stability. Furthermore, the results support the notion of a non-linear relationship between banking concentration and bank risk. The findings inform the regulatory authorities concerned with improving the financial stability of banking sector in the MENA region to set their policy differently depending on the level of concentration in the banking market.
Research limitations/implications
This study contributes to the literature on the effectiveness of regulatory reforms (in this case, capital requirements) and market competition for bank performance and risk-taking. In regard to IBs, capital requirements are less effective in requiring IBs to adjust their risk level according to the Basel III methodology. This study finds that IBs’ risk behavior is strongly associated with market competition, and therefore, the interest rates. Moreover, banks operating in markets with high banking concentration (but not necessarily, low competition), will decrease their credit risk level in response to an increase in the minimum capital requirements. As a result, these banks will be more stable compared to their conventional peers. Thus, regulators and policymakers in the MENA region should restrict the risk-taking behavior of IBs through stringent capital requirements and more intense banking supervision.
Practical implications
The practical implications of these findings are that the regulatory authorities concerned with improving banking sector stability in the MENA region should proceed differently, depending on the level of banking market concentration. The findings inform regulators and policymakers to set capital requirements at levels that would restrict banks from taking more risk to increase their returns. They are also important for bank managers who should avoid risky strategies in response to increased regulatory pressure (e.g. increase in the minimum required capital level of 8%), as they may lead to an increase in the level of non-performing loans, and therefore, a greater probability of bank default. A future extension of this study will focus on testing the effect of bank risk-taking and market competition on the capitalization levels of banks in the MENA countries. More specifically, this study will investigates if banks raise their capitalization levels during the COVID-19 pandemic.
Originality/value
The analysis of previous research indicates that there is no unambiguous answer to the question of whether IBs perform differently than CBs under different competitive conditions. To fill this gap, this study examines the influence of capital regulation and market competition (both individually and interactively) on bank risk-taking behavior using a large sample of banking institutions in 18 MENA countries over 14 years (2005–2018). For the first time in this line of research, this study shows that the level of market power is positively associated with the level of a bank’ insolvency risk. In others words, IBs operating in highly competitive markets are more inclined to take a higher risk than their conventional peers. Regarding the IBs credit risk behavior, this study finds that market power has a limited impact on the relationship between CAR and risk level. This means that IBs are still applying in their operations the theoretical models based on the prohibition of interest.